Subtitle 1. Finance

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.

History

Source.

V.S. 1947, § 535. P.L. § 480. 1933, No. 157 , § 421. G.L. § 539. 1917, No. 29 . P.S. § 371. R. 1906, § 333. V.S. §§ 265, 5430. 1894, No. 160 , § 7. 1888, No. 152 , §§ 2, 6. R.L. §§ 183, 4564. 1880, No. 139 , § 9. 1878, No. 126 , § 8. 1876, No. 29 , § 9. 1870, No. 4 , § 1. 1867, No. 61 , § 5. G.S. 9, § 1. 1842, No. 2 , § 1.

CROSS REFERENCES

Fiscal year for Vermont State Colleges, see 16 V.S.A. § 2176 .

Fiscal year for municipalities, including school districts, see 24 V.S.A. § 1683 .

§ 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.

History

Source.

V.S. 1947, § 557. 1937, No. 179 , § 1.

§ 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.

HISTORY: Added 1959, No. 328 (Adj. Sess.), § 20.

§ 4. Repealed. 1971, No. 260 (Adj. Sess.), § 29(b).

History

Former § 4. Former § 4, relating to filing of copies of applications for State participation in certain federal programs, was derived from 1967, No. 225 (Adj. Sess.), § 1.

§ 5. Acceptance of grants.

  1. 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, or board.
  2. 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:
      1. the State agency is granted approval pursuant to this subsection (b); or
      2. 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:
      1. the source and value;
      2. the legal and referenced title, in the case of a grant;
      3. the costs, direct and indirect, for the present and future years;
      4. the receiving department or program, or both;
      5. a brief statement of purpose; and
      6. any impact on existing programs if there is a rejection.
    3. Legislative review.
      1. The Governor’s approval in subdivision (b)(2) of this section shall be final, except as follows:
        1. 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
        2. 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.
      2. 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.
      3. 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.
      4. 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.
      1. General.   The review and approval process set forth in subsection (b) of this section shall not apply to the following items:
        1. 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
        2. a legal settlement.
        1. Notification required.   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. (B) (i) Notification required.   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.
        2. 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:
      1. notification of the Governor’s approval or rejection shall also be made to the Chairs of the House and Senate Committees on Transportation; and
      2. 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.
  3. 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:
      1. 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
      2. 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.
  4. 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.
  5. 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.

HISTORY: 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.

History

Revision note—

Subdiv. (3), as added by 1995, No. 46 , was redesignated as subdiv. (a)(3) for purposes of conformity with the text of the section as amended by 1995, No. 63 .

Editor’s note

—2014. The text of subdiv. (a)(3) is based on the harmonization of two amendments. During the 2013 Adjourned Session, this subdivision was amended twice, by Act Nos. 142 and 179, resulting in two versions of the subdivision. In order to reflect all of the changes enacted by the Legislature during the 2013 Adjourned Session, the text of Act Nos. 142 and 179 was merged to arrive at a single version of the subdivision. The changes that each of the amendments made are described in the amendment notes set out below.

Amendments

—2019 (Adj. Sess.) Subsec. (d): Amended generally.

—2019. Section amended generally.

—2017. Subdiv. (a)(3)(A)(ii): Inserted “and the Department of Fish and Wildlife” following “Recreation”.

—2013 (Adj. Sess.). Subdiv. (a)(3): Act No. 179 amended generally.

Subdiv. (a)(3)(B): Act No. 142 added the third sentence reflected in the merged version.

Subdiv. (a)(4): Added by Act No. 167.

—2009 (Adj. Sess.) Subdiv. (a)(2): Act No. 156 added the third sentence.

Subdiv. (a)(3): Act No. 146 inserted “or to the acceptance by the department of forests, parks and recreation of grants, gifts, donations, loans, or other things of value with a value of $15,000.00 or less” in the first sentence.

—2007. Subdiv. (a)(3): Substituted “things” for “thing”; deleted “by the division for historic preservation for use in establishing and maintaining displays and exhibits at any historic site or restoring any historic site maintained and developed under section 723 of Title 22; nor to grants, gifts, donations, loans, or other things of value” following “value”; substituted “$5,000.00” for “$1,000.00” preceding “or less” and added the third sentence.

—1997 (Adj. Sess.). Subdiv. (a)(3): Added the language beginning “nor to grants”.

—1997. Subdiv. (a)(2): Added “or, when the general assembly is in session, be held for legislative approval” following “fiscal committee” at the end of the first sentence, and added the third sentence.

—1995 (Adj. Sess.) Subsec. (b): Deleted “the Joint Fiscal Committee may” preceding “in conjunction with a grant” and “authorize” thereafter and inserted “may be authorized” in the first sentence.

—1995. Section amended generally.

Act No. 46 added subdiv. (3).

—1983 (Adj. Sess.) Subdiv. (1): Substituted “joint fiscal office” for “fiscal analyst of the joint fiscal committee” in the introductory clause and added subdiv. (H).

—1977 (Adj. Sess.) Subdiv. (1): Provided for “submission” to governor.

Subdiv. (2): Substituted “Joint Fiscal Committee” for “emergency board” wherever it appeared.

Acceptance of funds by State Buildings Department for renovation of Governor’s office. 1985, No. 73 , § 4, provided: “Notwithstanding section 5 of Title 32, the state buildings department is authorized to accept funds and other contributions from the Friends of the State House and others, for the purpose of renovating the Governor’s Office in the State House.”

Federal grants. 1997, No. 148 (Adj. Sess.), § 27, authorized the acceptance, notwithstanding this section, of federal grants for specified uses relating to the military department, corrections, environmental conservation, veterans, and orthophotographic mapping.

Acceptance of grants through federal Clean Water Act and Drinking Water Act. 2001, No. 61 , § 28, eff. June 16, 2001, provided:

“(a) Notwithstanding section 5 of Title 32 (acceptance of grants):

“(1) The commissioner of environmental conservation, with the approval of the secretary of natural resources, may accept federal grants made available through the federal Clean Water Act and the federal Drinking Water Act in accordance with chapter 120 of Title 24. Acceptance of this grant money is hereby approved, provided that all notifications are made under subsection 4760(a) of Title 24.

“(2) The commissioner of corrections, with the approval of the secretary of human services, may accept federal grants made available through federal crime bill legislation.

“(b) Each receipt of a grant or gift as authorized by this section shall be reported to the chairs of the house and senate committees on institutions and to the Joint Fiscal Committee.”

Acceptance of funds by Defender General to identify, assess, and accommodate developmental disabilities. 1999, No 62, § 57a, eff. June 2, 1999, provided that: “Notwithstanding section 5 of Title 32 pertaining to acceptance of grants, the defender general may accept up to $150,000.00 in federal grant funds from the Bureau of Justice Assistance of the United States Department of Justice to identify, assess and accommodate developmental disabilities of persons who are assigned the services of the office of the defender general.”

American Rescue Plan Act of 2021: Acceptance of specific federal grants. 2021, No. 9 , § 1a provides: “(a) Notwithstanding 32 V.S.A. § 5 , funds from the American Rescue Plan Act of 2021 (ARPA), the Coronavirus State Fiscal Recovery Fund, and the Coronavirus Capital Projects Fund shall be deposited into the State Treasury and are hereby accepted and shall be spent subject to appropriation.

“(b) Notwithstanding 32 V.S.A. § 5 , any funds received through Section 2001 of the Elementary and Secondary School Emergency Relief Fund and not required to be made as subgrants to local educational agencies in ARPA shall be spent subject to appropriation.”

New positions. 2021, No. 74 , § A.107(a) provides: “Notwithstanding any other provision of law, the total number of authorized State positions, both classified and exempt, excluding temporary positions as defined in 3 V.S.A. § 311(11) , shall not be increased during fiscal year 2022 except for new positions authorized by the 2021 session. Limited service positions approved pursuant to 32 V.S.A. § 5 shall not be subject to this restriction.”

§ 6. Indirect costs.

  1. 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.
  2. 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.

HISTORY: 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.

History

Amendments

—2011 (Adj. Sess.). Subsec. (b): Added the present third sentence.

—1999. Inserted “except statewide indirect costs will be deposited into the transportation fund for costs recovered by the agency of transportation” at the end of the second paragraph.

1999, No. 1 , § 108, provided in part that the amendment to this section by section 92 of the act shall be retroactive to July 1, 1998.

Chapter 3. Fiscal Officers and Commissions

Subchapter 1. Treasurer

CROSS REFERENCES

Deputy Treasurer, see 3 V.S.A. § 253 .

§ 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.

HISTORY: Amended 1965, No. 158 , § 2; 1971, No. 13 , § 1, eff. Feb. 25, 1971; 2017, No. 74 , § 131.

History

Source.

V.S. 1947, § 549. P.L. § 494. G.L. § 555. P.S. § 387. V.S. § 280. R.L. § 198. G.S. 8, § 15. R.S. 8, § 12. R. 1797, p. 484, § 14.

Amendments

—2017. Section amended generally.

—1971. Deleted requirement that report be combined with that of the Director of Finance.

—1965. Made Treasurer’s report mandatory instead of on request and added reference to an annual financial report.

§ 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.

History

Source.

V.S. 1947, § 546. P.L. § 491. G.L. § 552. P.S. § 384. V.S. § 277. R.L. § 195. G.S. 8, § 12. 1860, No. 53 , § 4. R.S. 8, § 8. R. 1797, p. 484, § 14.

CROSS REFERENCES

Embezzlement generally, see 13 V.S.A. § 2531 .

§ 103. Account with successor.

If the Treasurer goes out of office, he or she shall exhibit to his or her successor a true and particular account of the money received and paid out since the last examination of his or her books and accounts as provided in section 801 of this title, and, within 10 days after his or her successor is declared elected or is appointed, with such successor and the Auditor, he or she shall adjust and strike the balance found against him or her within such time as is prescribed by the Auditor, or be liable therefor to the State in a civil action.

History

Source.

V.S. 1947, § 552. P.L. § 497. 1933, No. 157 , § 438. G.L. § 561. P.S. § 389. V.S. § 282. R.L. § 200. G.S. 8, §§ 17, 18. R.S. 8, §§ 13, 14. R. 1797, p. 487, 488, §§ 16, 17.

Revision note—

Reference to “an action of contract” changed to “a civil action” pursuant to V.R.C.P. 2 and 81(c); and 1971, No. 185 (Adj. Sess.), § 236(d), set out under 4 V.S.A. § 219 .

§ 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.

History

Source.

V.S. 1947, § 553. P.L. § 498. G.L. § 562. P.S. § 390. V.S. § 283. R.L. § 201. G.S. 8, § 19. R.S. 8, § 15.

§ 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.

History

Source.

V.S. 1947, § 554. P.L. § 499. G.L. § 563. P.S. § 391. V.S. § 284. R.L. § 202. G.S. 8, § 22. R.S. 8, § 18.

§ 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.

History

Source.

V.S. 1947, § 555. P.L. § 500. G.L. § 564. P.S. § 392. V.S. § 285. R.L. § 203. G.S. 8, § 20. R.S. 8, § 16. R. 1797, p. 488, § 17.

§ 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.

History

Source.

V.S. 1947, § 556. P.L. § 501. G.L. § 565. P.S. § 393. V.S. § 286. R.L. § 204. G.S. 8, § 21. R.S. 8, § 17. R. 1797, p. 488, § 17.

§ 108. Repealed. 1999, No. 71 (Adj. Sess.), § 1.

History

Former § 108. Former § 108, relating to municipal indebtedness, was derived from 1977, No. 155 (Adj. Sess.), § 1.

§ 109. Solicitations and contributions prohibited.

  1. 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.
  2. 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.
  3. 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.

HISTORY: Added 1997, No. 64 , § 26.

§ 110. Reports.

  1. 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.]
  2. Reports required to be submitted to the General Assembly annually by January 15 shall be consolidated in a single document.

HISTORY: Added 2003, No. 122 (Adj. Sess.), § 294b; amended 2009, No. 33 , § 83(m)(1); 2011, No. 139 (Adj. Sess.), § 31, eff. May 14, 2012.

History

Amendments

—2011 (Adj. Sess.). Subdivs. (a)(2) and (a)(4): Repealed.

—2009. Subdiv. (a)(5): Repealed.

§ 111. Financial Literacy Trust Fund.

  1. 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.
  2. 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.
  3. 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.

HISTORY: 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.

HISTORY: Amended 2017, No. 85 , § C.116, eff. June 28, 2017.

History

Source.

V.S. 1947, § 618. P.L. § 564. 1923, No. 7 , § 38.

Amendments

—2017. Added the second sentence.

CROSS REFERENCES

Emergency Board attached to Governor’s office for administrative purposes, see 3 V.S.A. § 2 .

§ 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.

History

Source.

V.S. 1947, § 619. 1939, No. 9 , § 17. P.L. § 565. 1923, No. 7 , § 38.

§ 133. Duties.

  1. The Board shall have authority to make expenditures necessitated by unforeseen emergencies and may draw on the State’s General Fund for that purpose.
  2. 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.
  3. 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.

HISTORY: Amended 2007, No. 65 , § 287.

History

Source.

V.S. 1947, § 620. P.L. § 566. 1925, No. 19 , § 75. 1923, No. 7 , § 39.

Amendments

—2007. Subsec. (a): Added the subsec. designation; deleted “any” preceding “expenditures”; substituted “draw” for “borrow” and “state’s general fund for that purpose” for “credit of the state for the same”.

Subsecs. (b) and (c): Added.

ANNOTATIONS

Appropriation.

Action of Emergency Board in attempting by resolution to appropriate and set apart from funds appropriated for its use by Legislature, certain sums for current and next succeeding fiscal years, for use of Secretary of State in automobile department, and to add such sums previously appropriated by Legislature for use by Secretary of State in such department, was outside powers of Board, as power to appropriate money is legislative in character and under the Constitution (ch. II, section 27), was and is exclusively with General Assembly. Grout v. Gates, 97 Vt. 434, 124 A. 76, 1924 Vt. LEXIS 181 (1924).

Under this section, “expenditure” is the “act of expending, a laying out of money, disbursement,” and is different from “appropriation,” which means “to set apart for, or to assign to, a particular person or use, in exclusion of all others.” Grout v. Gates, 97 Vt. 434, 124 A. 76, 1924 Vt. LEXIS 181 (1924).

Delegation of powers.

Emergency Board cannot delegate authority granted it “to make any expenditures necessitated by unforeseen emergencies,” and so is not authorized to appropriate or set apart money to some department or officer of the State to be so expended, although it may select a person to make the expenditures under its direction. Grout v. Gates, 97 Vt. 434, 124 A. 76, 1924 Vt. LEXIS 181 (1924).

While provisions of section do not necessarily contemplate that members of Emergency Board, when an unforeseen emergency exists, shall themselves perform detailed work in making emergency expenditures thereby authorized and work may be done through its agent or agents, statute does contemplate that, in interest of State economy and governmental efficiency, Board shall take administration of such work, and that moneys and appropriations shall be used under its general direction and control and in its official designation. Grout v. Gates, 97 Vt. 434, 124 A. 76, 1924 Vt. LEXIS 181 (1924).

Unforeseen emergencies.

Large and unforeseen increase in registration of motor vehicles, in violations of motor vehicle law and in accidents to motor vehicles and deaths and injuries therefrom, rendering appropriation made by Legislature for use by Secretary of State in automobile department inadequate properly to carry on the additional work occasioned that department thereby, constituted an “unforeseen emergency.” Grout v. Gates, 97 Vt. 434, 124 A. 76, 1924 Vt. LEXIS 181 (1924).

Cited.

Cited in Libercent v. Aldrich, 149 Vt. 76, 539 A.2d 981, 1987 Vt. LEXIS 588 (1987).

Notes to Opinions

Construction with other laws.

The power of the Emergency Board under this section to make expenditures is limited by § 138 of this title. 1966-68 Vt. Op. Att'y Gen. 46.

Contingent Fund.

There is nothing in the law requiring an “unforeseen emergency” to exist before the Contingent Fund becomes operative; this requirement relates solely to the Emergency Fund. 1966-68 Vt. Op. Att'y Gen. 46.

All that need be determined in the use of the Contingent Fund is an inadequacy or insufficiency of an original appropriation and to make a judgment as to the funds needed if a transfer of such funds is deemed to be in the best interests of the State and those affected by the insufficiency. 1966-68 Vt. Op. Att'y Gen. 46.

There is nothing inherent in the Emergency Board, as such, or its emergency powers applicable to the Contingent Fund; the Legislature simply designated the Emergency Board as the agency to make certain determinations of inadequacy and insufficiency and need in relation to this fund. 1966-68 Vt. Op. Att'y Gen. 46.

Unforeseen emergencies.

An appropriation for the contingency fund “for unforeseen but desirable purposes” is another way of saying for “unforeseen emergencies” and as such there would be no objection to an appropriation made in such terms. 1966-68 Vt. Op. Att'y Gen. 94.

The Board does not have authority to allocate, or “appropriate” money to the Vermont Student Assistance Corporation from the Emergency Fund, but assuming an “unforeseen emergency” exists in fact, it does have the authority to make expenditures from this Fund under its own supervision, and in so doing, may enlist the Vermont Student Assistance Corporation to act as its agent for such purpose. 1966-68 Vt. Op. Att'y Gen. 46.

Whether the inadequacy of an appropriation constitutes an “unforeseen emergency” within the meaning of this section so that the Emergency Fund may be used by the Board under its own supervision is primarily a question of fact. 1966-68 Vt. Op. Att'y Gen. 46.

Board could properly allocate emergency funds for purpose of carrying out duties of State under federal school lunch program. 1946-48 Vt. Op. Att'y Gen. 95.

Failure of Legislature, having given attention to matter, to make sufficient appropriation for old age assistance, was deliberate and, therefore, shortage cannot be described as an unforeseen emergency. 1944-46 Vt. Op. Att'y Gen. 153.

Board had authority to make expenditures for completion of work left upon closing of several CCC camps. 1940-42 Vt. Op. Att'y Gen. 204.

Necessity for building Missisquoi Bay Bridge was not an unforeseen emergency, and Emergency Board was not authorized to use any of its appropriation for construction of such project. 1934-36 Vt. Op. Att'y Gen. 254.

§ 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.

HISTORY: Amended 1961, No. 64 , § 1, eff. April 7, 1961; 1995, No. 178 (Adj. Sess.), § 422, eff. May 22, 1996.

History

Source.

V.S. 1947, § 8624. 1937, No. 14 , § 1.

Amendments

—1995 (Adj. Sess.) Deleted the former second sentence, inserted “property” preceding “insurance policies” and substituted “to real and personal property” for “suffered by the state” in the present second sentence.

—1961. Substituted “insurance reserve fund” for “insurance sinking fund”, and “created” for “re-created”; provided for transfer of funds to insurance reserve fund; and provided for payment into insurance reserve fund of all funds paid to state under insurance policies for benefit of state for losses suffered.

Insurance sinking fund renamed insurance reserve fund. 1961, No. 64 , § 4, eff. April 7, 1961, provided: “Each section of law where the words ‘insurance sinking fund’ appear is hereby amended by striking out the word ‘sinking’ and inserting instead the word ‘reserve’.”

CROSS REFERENCES

State insurance, see 29 V.S.A. chapter 55.

Notes to Opinions

State Colleges.

This section and § 135 of this title are not applicable to Vermont State Colleges. 1962-64 Vt. Op. Att'y Gen. 292.

§ 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.

HISTORY: Amended 1961, No. 64 , § 2, eff. April 7, 1961; 1995, No. 178 (Adj. Sess.), § 423, eff. May 22, 1996.

History

Source.

V.S. 1947, § 621. 1937, No. 14 , § 3. P.L. § 567. 1927 S., No. 1, § 7. 1925, No. 19 , § 75. 1923, No. 7 , § 39. 1919, No. 10 , §§ 4, 5.

Amendments

—1995 (Adj. Sess.) Section amended generally.

—1961. Substituted “insurance reserve fund” for “insurance sinking fund”; inserted “or other hazard” after “fire” in first sentence; and, also, in first sentence, omitted provision empowering board to “use any moneys received from insurance on such buildings or property” for the purposes stated. For payment into insurance reserve fund of funds received by state for insurance losses, see § 134 of this title.

Appropriation. V.S. 1947, § 622, derived from P.L. § 568; 1927 S., No. 1, § 7; 1925, No. 19 , § 75; 1923, No. 7 , § 39; provided: “All sums of money used under the provisions of the preceding section (§ 135 of this title) are hereby appropriated for the purposes therein mentioned. Such moneys and appropriations shall be used as the board may direct.”

§§ 136-138. Repealed. 1995, No. 178 (Adj. Sess.), § 424, eff. May 22, 1996.

History

Former §§ 136-138. Former § 136, relating to administration of the Insurance Reserve Fund, was derived from V.S. 1947, § 623; 1937, No. 14 , § 2.

Former § 137, relating to the Board’s duty to render an itemized statement of expenditures to the General Assembly, was derived from V.S. 1947, § 624; P.L. § 569; 1927 S., No. 1, § 7; 1925, No. 19 , § 75; 1923, No. 7 , § 39; 1919, No. 10 , § 6.

Former § 138, relating to limitations on Board appropriations and expenditures, was derived from V.S. 1947, § 625; P.L. § 570; 1925, No. 19 , § 75; 1923, No. 8 , § 16; and amended by 1961, No. 64 , § 3.

Subchapter 3. Auditor of Accounts

§ 161. Oath.

The Auditor shall take the oath of office prescribed by law.

History

Source.

V.S. 1947, § 558. P.L. § 502. 1933, No. 157 , § 443. G.L. § 572. P.S. § 405. V.S. § 299. 1894, No. 162 , § 292.

CROSS REFERENCES

Appointment of Deputy to Auditor of Accounts, see 3 V.S.A. § 253 .

Notes to Opinions

Control of federal- or State-appropriated funds.

Auditor of Accounts is without authority to control administration of federal- or State-appropriated, funds by Governor or designated and authorized department. 1956-58 Vt. Op. Att'y Gen. 182.

§ 162. Repealed. 1959, No. 328 (Adj. Sess.), §§ 17, 35(f).

History

Former § 162. Former § 162, relating to additional duties of Auditor, was derived from V.S. 1947, § 582; 1939, No. 9 , § 2.

§ 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:
    1. an audit of the basic financial statements of the State of Vermont;
    2. 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
    3. 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.
    1. Prominently post and retain on his or her official State website, and update at least annually, the following information: (3) (A) Prominently post and retain on his or her official State website, and update at least annually, the following information:
      1. All reports that result from audits conducted under subdivision (1) of this section.
      2. [Repealed.]
      3. 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.
    2. 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.
      1. 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.
      2. The audit reports shall be public records.
      1. 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. (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.
      2. 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.
  3. Make special audits of any department, institution, and agency as the Governor may from time to time require.
  4. [Repealed.]
  5. 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.
  6. 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.
  7. , (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.

HISTORY: 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.

History

Revision note—

Reference to “finance director” changed to “commissioner of finance” in subdiv. (2) and “budget director” changed to “commissioner of budget and management” in subdiv. (4) to conform references to new titles and reorganization of state government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Reference to “commissioner of finance and information support” in subdiv. (2) and to “commissioner of budget and management” in subdivs. (4) and (5) changed to “commissioner of finance and management” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support, and further provided for the abolition of the department of budget and management, and the transfer of the duties, responsibilities, and authority of the commissioner of finance and information support to the commissioner of the department of finance and management as established by the order. However, the order further provided for the equipment and classified position of administrative secretary in the department of budget and management prior to the abolition of that entity to be transferred to the office of the secretary of administration, and the commissioner of former department to become the deputy secretary of administration. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Reference to “commissioner of administration” changed to “secretary of administration” and reference to “budget director” changed to “commissioner of budget and management” in subdiv. (5) to conform references to new titles and reorganization of state government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—2019 (Adj. Sess.). Section amended generally.

—2013 (Adj. Sess.). Subdiv. (3): Added.

Subdiv. (4): Substituted “a copy” for “10 copies” following “public records and” and added the last two sentences.

—2011 (Adj. Sess.). Subdiv. (6): Repealed.

Subdivs. (11) and (12): Added.

—2007 (Adj. Sess.) Section amended generally.

—2005 (Adj. Sess.). Subdiv. (12): Added the subdiv. (A) designation and added subdiv. (12)(B).

—2003. Subdiv. (12): Added third sentence.

—1999 (Adj. Sess.) Subdiv. (12): Added.

—1985 (Adj. Sess.) Subdiv. (11): Added.

—1983 (Adj. Sess.) Subdiv. (2): Added “and information support” following “commissioner of”.

—1977 (Adj. Sess.) Subdiv. (9): First sentence amended generally.

—1971. Subdivs. (9), (10): Added.

—1969 (Adj. Sess.) Subdiv. (3): Repealed.

Subdiv. (5): Provided for report first to speaker of house and president of the senate.

—1967. Section amended generally; deleted reference to auditing town funds.

Prospective repeal of subdiv. (10). 2007, No. 121 (Adj. Sess.), § 32(b) provides that subdiv. (10), relating to biennial audit of Vermont employment growth incentive program, shall be repealed on December 31, 2012.

Auditor website; audit findings. 2011, No. 155 (Adj. Sess.), § 24, effective May 16, 2012 provides: “(a) By July 1, 2012, the auditor of accounts shall prominently post on his or her official state website the following information:

“(1) a summary of all embezzlements and false claims, as that term is described in 13 V.S.A. § 3016 , against any agency or department of the state committed within the last five years, whether committed by a state employee, contractor, or other person. The summary shall include the names of all persons or entities convicted of those offenses; and

“(2)(A) all reports with findings that result from audits conducted under 32 V.S.A. § 163(1) ; and

“(B) a summary of significant recommendations arising out of the audits that are contained in audit reports conducted under 32 V.S.A. § 163(1) and issued since January 1, 2012, and the dates on which corrective actions were taken related to those recommendations. Recommendation follow-up shall be conducted at least biennially and for at least four years from the date of the audit report.

“(b) The auditor of accounts shall notify the general assembly of the initial posting made on his or her website pursuant to subsection (a) of this section by electronic or other means.”

CROSS REFERENCES

Annual examination by Auditor used to be required in 19 V.S.A. § 13(f) , but that requirement was repealed in 2008 Act 121, Sec. 14.

State Lottery accounts and transactions of the Board of Liquor and Lottery subject to annual postaudits, see 31 V.S.A. § 658 .

Notes to Opinions

Change of classification.

Subdiv. (8) [now subdiv. (7)] of this section does not give the Auditor of Accounts the power to change the job classification of permanent positions in his or her department as such classification is determined by the Personnel Board. 1962-64 Vt. Op. Att'y Gen. 280.

Conflict with regulations.

The authority given to the Auditor of Accounts under subdiv. (8) [now subdiv. (7)] of this section, whereby he or she may hire a person within a scale of the classification law, other than at the lowest or minimum rate, as provided for under rules of the Personnel Board, takes precedence and prevails over a rule of such Board. 1962-64 Vt. Op. Att'y Gen. 275.

Increasing salaries.

Under subdiv. (8) [now subdiv. (7)] of this section, while Auditor of Accounts may hire a new employee from eligibles and set the salary within a grade, the Auditor does not have the power to increase the salary of permanent employees previously set. 1962-64 Vt. Op. Att'y Gen. 280.

List of eligibles.

The Auditor of Accounts has no right to bypass the classification system relating to the certification of eligibles. 1962-64 Vt. Op. Att'y Gen. 280.

Public inspection.

The public is not entitled to examine the financial records and documents of the Vermont State Colleges and the University of Vermont, but is entitled to examine detailed reports on the audits of the records. 1970-72 Vt. Op. Att'y Gen. 73.

§ 164. Certified copies.

The Auditor shall be a certifying officer, and a certified copy of a record or paper belonging to his or her Department or that is lodged there by law shall be admitted as evidence by the courts in any cause, civil or criminal. He or she shall furnish copies of records or papers upon being paid the legal fees therefor by the person requesting the same.

History

Source.

V.S. 1947, § 569. P.L. § 516. G.L. § 588. P.S. § 413. 1904, No. 24 , § 1.

§ 165. Repealed. 1961, No. 40, § 2.

History

Former § 165. Former § 165, formerly § 164, relating to payments to towns, was derived from V.S. 1947, § 559; P.L. § 503; 1933, No. 157 , § 444; 1919, No. 20 , § 1, and is now covered by § 166 of this title.

§ 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.

HISTORY: 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.

History

Revision note—

In the section heading and in two places in the text of the section, reference to “commissioner of finance and information support” changed to “commissioner of finance and management” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of the commissioner of that entity to the commissioner of the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 , Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Amendments

—2015 (Adj. Sess.). Deleted the final sentence, which read, “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.”.

—2013 (Adj. Sess.). Added the second sentence.

—1983 (Adj. Sess.). Inserted “and information support” following “commissioner of finance” in the section heading and in the text.

—1969 (Adj. Sess.). Section amended generally.

§ 167. Records to be available for audit.

  1. 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.
  2. 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.

HISTORY: 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.

History

Amendments

—2007 (Adj. Sess.) Subsec. (a): Act No. 121 inserted “in all formats” following “returns” and “municipal, school supervisory union, school district, and” preceding “county officers” in the first sentence, and “municipality, school supervisory union, school district, or” preceding “county to provide” in the second sentence, and made minor changes in punctuation throughout.

Subsec. (b): Act No. 169 added the second and third sentences.

—1971 (Adj. Sess.). Subsec. (a): Added reference to “other explanatory information”.

—1969 (Adj. Sess.). Subsec. (a): Deleted provisions relating to payroll records of municipalities.

Notes to Opinions

Public inspection.

The public is not entitled to examine the financial records and documents of the Vermont State Colleges and the University of Vermont, but is entitled to examine detailed reports on and audits of the records. 1970-72 Vt. Op. Att'y Gen. 73.

§ 168. Single Audit Revolving Fund.

    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 . (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.
    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 . (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.

HISTORY: 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.

History

Amendments

—2021. Subdiv. (a)(1): Substituted “163(2), and 5404a(l) of this title” for “and, (2) of this subchapter”.

Subdiv. (b)(1): Substituted “, 163(2), and 5404a(l) of this title” for “and (2) of this subchapter”.

Subdiv. (b)(2): Substituted “title” for “subchapter”.

—2019 (Adj. Sess.). Section amended generally by Act No. 104.

Subdiv. (a)(1): Act No. 154 substituted “subdivisions 163(1) and (2) of this subchapter and 24 V.S.A. § 290b ” for “subdivision 163(1) of this subchapter”.

Subdiv. (b)(1): Act No. 154 inserted “instrumentality, political subdivision,” following “commission,” and substituted “subdivisions 163(1) and (2) of this subchapter and 24 V.S.A. § 290b ” for “subdivision 163(1) of this subchapter”.

Subdiv. (b)(2): Act No. 154 inserted “costs associated with subdivisions 163(1) and (2) of this subchapter shall be” preceding “approved”.

—2005 (Adj. Sess.). Subsecs. (a) and (b): Substituted “subdivs. 163(1) and (11)” for “section 163(11)” in the first sentence.

Subchapter 4. Finance and Management Department

History

Revision note—

In the heading for subchapter 4, substituted “Finance and Management Department” for “Finance and Information Support Department” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of that entity to the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 , Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Amendments

—1987 (Adj. Sess.) 1987, No. 243 (Adj. Sess.), § 54, eff. June 13, 1987, deleted the heading and designation of former subchapter 5 of this chapter, comprising sections 201-203 of this title, and transferred former subchapter 5 to this subchapter.

—1983 (Adj. Sess.) 1983, No. 195 (Adj. Sess.), § 5, inserted “and Information Support” following “Finance” in the subchapter heading.

Abolition of the department of budget and management; transfer of positions and equipment. Executive Order No. 35-87, dated Aug. 6, 1987, provided for the abolition of the department of budget and management and the transfer of authorized positions and equipment to the department of finance and management as established by the order. However, the order further provided for the equipment and classified position of administrative secretary in the department of budget and management prior to the abolition of that entity to be transferred to the office of the secretary of administration, and the commissioner of former department to become the deputy secretary of administration. By its own terms, Executive Order No. 35-87 took effect July 1, 1987, pursuant to 3 V.S.A. § 2002 , Executive Order No. 35-87, was revoked and rescinded by E.O. 06-05 (No. 3-46).

CROSS REFERENCES

Department of Finance and Management within Agency of Administration, see 3 V.S.A. § 2281 .

§ 181. Repealed. 1987, No. 243 (Adj. Sess.), § 52(1), eff. June 13, 1988.

History

Former § 181. Former § 181, relating to the appointment of the Commissioner of Finance, was derived from 1959, No. 328 (Adj. Sess.), § 7; 1965, No. 125 , § 6; 1983, No. 195 (Adj. Sess.), § 2.

§ 182. Duties of Commissioner.

  1. 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 a comprehensive annual financial report 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.
  2. 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.

HISTORY: 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.

History

Revision note—

In the introductory clause of subsec. (a), substituted “commissioner of finance and management” for “commissioner of finance and information support” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of the commissioner of that entity to the commissioner of the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 , Executive Order No. 35-87, was revoked and rescinded by E.O. 06-05 (No. 3-46).

Reference to “director” in the section heading and to “finance director” in text changed to “commissioner” and “commissioner of finance” respectively, and reference to “commissioner of administration” changed to “secretary of administration” in subdiv. (8) to conform reference to new titles and reorganization of state government pursuant to 1971, No. 92 . See chapter 45.

Amendments

—2015 (Adj. Sess.). Subdiv. (a)(8): Added the second sentence.

—2007. Subdiv. (a)(6): Act No. 7 deleted “by the commissioner of human resources” from the end of the subdivision.

Subdiv. (a)(8): Act No. 65 substituted “revenue” and “financial” preceding “reports” and “a comprehensive” for “an” preceding “annual”.

Subdiv. (a)(9): Act No. 65 substituted “Make available” for “Prepare” preceding “monthly”.

Subdiv. (a)(10): Act No. 65 inserted “a” preceding “standard”; substituted “chart of accounts structure” for “accounting classifications” preceding “pertaining” and “revenue, and expenditure codes” for “accounts, object code, and receipts” following “appropriation”.

Subdiv. (a)(11): Deleted by Act No. 65.

—2003 (Adj. Sess.). Subdiv. (a)(6): Substituted “commissioner of human resources” for “commissioner of personnel”.

Subdiv. (a)(8): Inserted the language beginning “which shall be distributed” and ending “and on institutions”.

—1997 (Adj. Sess.). Subsec. (b): Substituted “except in accordance with the provisions of § 462 of this title” for “unless the same is appropriated by the general assembly”.

—1995 (Adj. Sess.) Subdiv. (a)(6): Amended generally.

—1991 (Adj. Sess.). Subdiv. (a)(14): Added.

—1989 (Adj. Sess.). Subdiv. (a)(5): Inserted “in the commissioner’s discretion” preceding “pre-audit”.

—1987 (Adj. Sess.) Subdiv. (8): Inserted “in accordance with generally accepted accounting principles” following “financial report”.

Subdiv. (14): Repealed.

—1983 (Adj. Sess.) Designated existing provisions of section as subsec. (a) and inserted “and information support” preceding “shall” in that subsection, deleted “of finance” following “commissioner” wherever it appeared in subdiv. (a)(1), and added subdiv. (a)(14) and subsec. (b).

—1977. Subdiv. (8): Added “on or before December 31 of each year”.

—1975. Subdiv. (1): Amended generally to provide for appropriate systems of accounting.

—1971. Subdiv. (8): Deleted requirement that report be combined with that of the state treasurer.

—1965. Combined director’s annual report with treasurer’s annual report.

Transfer of positions and appropriations of the department of finance and management. 1995, No. 123 (Adj. Sess.), § 7, eff. June 6, 1996, provided:

“(a) The rules of the department of finance and management relating to payroll in effect on the effective date of this act [June 6, 1996] shall be the rules of the department of personnel, until amended or repealed by that department. All references in those rules to the ‘commissioner’ and the ‘department of finance and management,’ shall be deemed to refer to the ‘commissioner of personnel’ and the ‘department of personnel.’

“(b) All employees, professional and support staff, consultants, positions and equipment and the remaining balances of all appropriation amounts for personal services and operating expenses for the payroll division are transferred from the department of finance and management to the department of personnel.”

Notes to Opinions

Encumbrance accounting.

It is the duty of the Finance Director to maintain encumbrance accounting within the provisions of this section. 1962-64 Vt. Op. Att'y Gen. 167.

§ 183. Financial and Human Resource Information Internal Service Fund.

  1. 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.
  2. 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.

HISTORY: 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.

History

Amendments

—2019. Subsec. (a): Substituted “Agency of Digital Services” for “Department of Information and Innovation” following “provided by the”.

—2011. Subsec. (a): Deleted the former last sentence.

Subsec. (b): Deleted the former third and fourth sentences.

—2009 (Sp. Sess.). Subsec. (a): Substituted “and services provided by the department of information and innovation for the statewide central accounting and encumbrance, budget development, and” for “for the” and “systems” for “system in the department of human resources” following “resource management”.

—2003 (Adj. Sess.). Subsec. (a): Substituted “department of human resources” for “department of personnel” in the first sentence.

§§ 184-200. [Reserved for future use.]

§ 201. Repealed. 1987, No. 243 (Adj. Sess.), § 55, eff. June 13, 1988.

History

Former § 201. Former § 201, relating to the appointment of the Commissioner of Budget and Management, was derived from 1959, No. 328 (Adj. Sess.), § 3; 1965, No. 125 , § 7.

§ 202. Duties of Commissioner.

In addition to the duties expressly set forth elsewhere by law, the Commissioner of Finance and Management through his or her Department shall:

  1. perform the following duties with respect to the budget:
    1. prepare an operating budget for the Governor-elect or Governor as provided by sections 301-307 of this title;
    2. prepare and install forms upon which departmental and capital budget requests are made;
    3. schedule and assist in hearings on departmental and agency requests;
    4. assist the Governor and, on request, the Legislature on budget matters;
    5. exercise continuing supervision and study of budget procedures; and
    6. 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:
    1. carry out continuing studies of the operation of existing or new State agencies and make recommendations to obtain most economic and effective management;
    2. assist departments on procedures and other problems of management;
    3. carry on a research program in the field of governmental and financial administration and analysis of State tax structure and yield; and
    4. 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.

HISTORY: 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.

History

Revision note—

Reference to “director” in the section heading and to “budget director through his division” in text changed to “commissioner” and “commissioner of budget and management through his department” respectively to conform references to new titles and reorganization of State government. See 3 V.S.A. chapter 45.

Reference to “commissioner of budget and management” changed to “commissioner of finance and management” in introductory paragraph in light of Executive Order No. 35-87, dated Aug 6, 1987, which provided for the abolition of the department of budget and management and the transfer of authorized positions and equipment to the department of finance and management as established by the order. However, the order further provided for the equipment and classified position of administrative secretary in the department of budget and management prior to the abolition of that entity to be transferred to the office of the secretary of administration, and the commissioner of former department to become the deputy secretary of administration. By its own terms, Executive Order No. 35-87 took effect July 1, 1987, pursuant to 3 V.S.A. § 2002 , Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Reference to “commissioner of administration” changed to “secretary of administration” in subdiv. (1)(F) to conform reference to new title and reorganization of state government. See 3 V.S.A. chapter 45.

Amendments

—1987 (Adj. Sess.). Substituted “commissioner of finance” for “commissioner of budget” preceding “and management through his” and inserted “or her” thereafter in the introductory paragraph and substituted “an” for “a biennial” preceding “operating” and inserted “or governor” preceding “as provided” in subdiv. (1)(A).

—1985. Subdiv. (4): Substituted “office” for “officer” preceding “on or before” and inserted “November 1 of the first fiscal year of each biennium” thereafter and “of the second fiscal year of each biennium” following “December 1”.

—1979 (Adj. Sess.). Subdiv. (4): Added.

—1973 (Adj. Sess.). Subdiv. (1)(A): Substituted “biennial operating budget” for “annual operating budget”.

—1969. Subdiv. (1)(A): Substituted “annual operating budget” for “biennial operating budget”.

Transfer of positions and appropriations of the Department of Finance and Management. 1995, No. 123 (Adj. Sess.), § 7, eff. June 6, 1996, provided:

“(a) The rules of the department of finance and management relating to payroll in effect on the effective date of this act [June 6, 1996] shall be the rules of the department of personnel, until amended or repealed by that department. All references in those rules to the ‘commissioner’ and the ‘department of finance and management,’ shall be deemed to refer to the ‘commissioner of personnel’ and the ‘department of personnel.’

“(b) All employees, professional and support staff, consultants, positions and equipment and the remaining balances of all appropriation amounts for personal services and operating expenses for the payroll division are transferred from the department of finance and management to the department of personnel.”

§ 203. Repealed. 2009, No. 135 (Adj. Sess.), § 26(15).

History

Former § 203. Former § 203, relating to the Committee on Coordination, was derived from 1959, No. 328 (Adj. Sess.), § 3.

Subchapter 5. [ Reserved ]

Subchapter 6. Contracts for Goods and Services [Repealed]

§ 215. Repealed.

History

Former § 215. Former § 215, which comprised subchapter 6, relating to the State contracts for goods and services, was derived from 1991, No. 195 (Adj. Sess.), § 1, and repealed on July 1, 1997 pursuant to 1991, No. 195 (Adj. Sess.), § 2.

Chapter 5. Budget

CROSS REFERENCES

Continuing review of State budget by Joint Fiscal Committee, see 2 V.S.A. § 503 .

Exceeding budget, see § 702 of this title.

§ 301. Department estimate and statement.

  1. 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.
  2. 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.
  3. 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.

HISTORY: 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.

History

Source.

Subsec. (a): V.S. 1947, § 606. 1939, No. 9 , § 12. P.L. § 552. 1923, No. 7 , § 22.

Subsec. (b): V.S. 1947, § 608. P.L. § 555. 1923, No. 7 , § 23.

Revision note—

Reference to “department of administration” changed to “agency of administration” in subsec. (c) to conform reference to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—1987 (Adj. Sess.). Subsec. (a): Substituted “commissioner of finance and management” for “commissioner of budget and management” in two places in the first sentence.

—1973 (Adj. Sess.). Subsec. (a): Amended generally by providing for biennial fiscal reports and substituting “commissioner of budget and management” for “budget director”.

Subsec. (b): Provided for fiscal estimates for the ensuing two fiscal years.

—1969. No. 75 deleted references to “biennial” fiscal year.

Subsec. (c): Added by No. 14.

—1965. Subsec. (a): The date “October 1” was changed to “September 1”.

—1959 (Adj. Sess.). In subsec. (a), provided for filing statements with budget director instead of auditor and treasurer; for preparation of forms under direction of budget director instead of governor; for request on items not previously authorized by legislation to be made on separate forms; and deleted reference to chairman of boards and commissions.

Biennial or annual budget. 1979, No. 205 (Adj. Sess.), § 125, eff. May 9, 1980, provided in part: “Notwithstanding any other provisions of law, the Governor may require from department heads, and may submit to the Legislature, either a biennial or an annual budget.”

§ 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 607, 1939, No. 9 , § 13. P.L. § 554. 1923, No. 7 , § 23.

Revision note—

Reference to “commissioner of budget and management” changed to “commissioner of finance and management” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of budget and management and the transfer of authorized positions and equipment to the department of finance and management as established by the order. However, the order further provided for the equipment and classified position of administrative secretary in the department of budget and management prior to the abolition of that entity to be transferred to the office of the secretary of administration, and the commissioner of former department to become the deputy secretary of administration. By its own terms, Executive Order No. 35-87 took effect July 1, 1987, pursuant to 3 V.S.A. § 2002 , Executive Order No. 35-87, was revoked and rescinded by E.O. 06-05 (No. 3-46).

Amendments

—1973 (Adj. Sess.). Provided for biennial tabulated statements, for estimates covering ensuing two fiscal years, and for delivery of statements by commissioner of budget and management and the secretary of administration instead of preparation of statement by budget director and their delivery by commissioner.

—1971. Provided for delivery of statements only on request of governor or governor-elect.

—1969. Deleted references to “biennial” fiscal year.

—1959 (Adj. Sess.). Provided for preparation of statements by budget director and their delivery by commissioner, instead of by auditor and treasurer.

§ 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 herein provided for to the person elected Governor by the General Assembly.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 4(c).

History

Source.

V.S. 1947, § 609. 1939, No. 9 , § 14. P.L. § 556. 1923, No. 7 , § 23.

Revision note—

Reference to “commissioner of administration” changed to “secretary of administration” to conform reference to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—1959 (Adj. Sess.). Substituted “commissioner of administration” for “auditor and the treasurer.”

§ 304. Preparation of budget.

  1. 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.
  2. 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.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 4(d).

History

Source.

Subsec. (a): V.S. 1947, § 610. 1939, No. 9 , § 15. P.L. § 557. 1923, No. 7 , § 24.

Subsec. (b): V.S. 1947, § 611. 1939, No. 9 , § 16. P.L. § 558. 1923, No. 7 , § 24.

Revision note—

Reference to “commissioner of administration” changed to “secretary of administration” in subsecs. (a) and (b) to conform reference to new title and reorganization of State government pursuant to 1971. See 3 V.S.A. chapter 45.

Amendments

—1959 (Adj. Sess.). Subsec. (a): Substituted “commissioner of administration” for “auditor and the treasurer.”

Subsec. (b): Substituted “commissioner of administration” for “auditor and the treasurer” and deleted provisions relating to employment of assistants by governor-elect and the supplying of information and data by persons submitting estimates.

§ 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 his or her message dealing with the budget, as provided in section 306 of this title, the reasons for his or her action thereon.

History

Source.

V.S. 1947, § 612. P.L. § 559. 1923, No. 7 , § 24.

§ 305a. Official State revenue estimate.

  1. 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.
  2. 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.
      1. 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. (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.
      2. For Board consideration, there shall be provided three versions of the next succeeding fiscal year’s estimated per-member per-month expenditures:
        1. one version shall include inflation trends as set forth in subdivision 307(d)(5) of this title;
        2. one version shall be without the inflationary adjustment; and
        3. 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.
      3. 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.
      4. 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.
    1. 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.

HISTORY: 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.

History

Editor’s note

—2018. The text of subsec. (c) is based on the harmonization of two amendments. During the 2017 Adjourned Session, subsec. (c) was amended twice, by Act Nos. 154 and 167, resulting in two versions of subsec. (c). In order to reflect all of the changes enacted by the Legislature during the 2017 Adjourned Session, the text of Act Nos. 154 and 167 was merged to arrive at a single version of this subsection. The changes that each of the amendments made are described in the amendment notes set out below.

—2006. The text of this section is based on the harmonization of two amendments. During the 2005 Adjourned Session, this section was amended twice, by Act Nos. 191 and 215, resulting in two versions of this section. In order to reflect all of the changes enacted by the Legislature during the 2005 Adjourned Session, the text of Act Nos. 191 and 215 was merged to arrive at a single version of this section. The changes that each of the amendments made are described in the amendment notes set out below.

Amendments

—2019. Subsec. (a): Inserted “and” following “Infrastructure Bond,”, deleted “, and State Health Care Resources” following “Education”, and deleted the last sentence.

Subdiv. (c)(1)(A): Deleted “State Health Care Resources and” preceding “Global”, and substituted “Fund” for “Funds”.

—2017 (Adj. Sess.) Subsec. (c): Act 154 added the last sentence.

Subsec. (c): Amended generally by Act 167.

—2013. Subsec. (a): Deleted “and revenues from the gross receipts tax under 33 V.S.A. § 2503 ” at the end of the first sentence.

Subsec. (c): Deleted “for VermontRx” following “funds” and substituted “any” for “the Choices for Care” in the first sentence; and added the second sentence.

—2011 (Adj. Sess.) Subsec. (a): Deleted “Catamount,” preceding “and state health care resources funds” in the first sentence.

—2011. Subsec. (a): Inserted “transportation infrastructure bond,” preceding “education” and “and” following “Catamount,”; deleted “and Global Commitment” preceding “funds” and added the present fourth sentence.

—2009 (Adj. Sess.). Subsec. (c): Deleted “and next succeeding” preceding “fiscal year” and inserted “and estimates for the next succeeding fiscal year” thereafter in the final sentence.

—2009. Subsec. (c): Inserted “January” preceding “estimates” throughout the subsection and added the fourth and fifth sentences.

—2007 (Adj. Sess.). Subsec. (a): Inserted “and revenues from the gross receipts tax under 33 V.S.A. § 2503 ” following “Global Commitment funds” in the first sentence.

—2007. Subsec. (a): Substituted “again by July 31” for “on or about July 15” in the first sentence.

—2005 (Adj. Sess.). Act No. 191 designated the existing provisions of the section as subsecs. (a), (b), and (c), and in subsec. (a), substituted “Catamount, state health care resources, and Global Commitment” for “and health access trust” in the first sentence; in subsec. (c), substituted “estimates” for “health access trust fund estimate”, “Medicaid enrollment group as defined by the agency and the joint fiscal office” for “population category eligible”, inserted “programs or premium assistance programs” preceding “supported” and substituted “state health care resources and Global Commitment funds, for VermontRx, and for the programs under the Choices for Care Medicaid Section 1115 waiver” for “fund” in the first sentence, and added the second and third sentences.

Act No. 215 designated the existing provisions of the section as subsecs. (a), (b), and (c), and in subsec. (a), substituted “state health care resources, and Global Commitment” for “and health access trust” in the first sentence; in subsec. (c), substituted “estimates” for “health access trust fund estimate”, “Medicaid enrollment group as required by the Centers for Medicare and Medicaid Services” for “population category eligible”, inserted “programs” preceding “supported” and substituted “state health care resources and Global Commitment funds, for VermontRx, and for the programs under the Choices for Care Medicaid Section 1115 waiver” for “fund” in the first sentence, and added the second and third sentences.

—2005. Inserted “or about” preceding “January 15” and “July 15” and “and” preceding “health access”; deleted “and federal” and “for the current and next succeeding fiscal years” in the first sentence; added the second sentence; and substituted “respective funds for the years covered by the estimates” for “general fund, the transportation fund, education fund, health access trust fund, and federal funds for the current and next succeeding fiscal years” at the end of the present third sentence.

—2001 (Adj. Sess.) Inserted “health access trust,” following “education” in the first sentence, inserted “health access trust fund,” following “education fund,” in the second sentence, and added the last sentence.

—1997. Inserted “education” following “transportation” in the first sentence and “education fund” following “transportation fund” in the second sentence.

Retroactive effective date of amendments. 2019, No. 6 , § 105(a), provides “Notwithstanding 1 V.S.A. § 214 or any other act or provision, Secs. 64-72 (State Health Care Resources Fund), 74 ( 32 V.S.A. § 10503 ), 75 ( 33 V.S.A. § 1951 ), and 76 ( 33 V.S.A. § 1956 ) and Sec. 85 amending 16 V.S.A. § 2857 shall take effect on passage and apply retroactively to July 1, 2018.”

Repeal of 2005, No. 215 (Adj. Sess.) amendment. 2007, No. 65 , § 404, eff. June 4, 2007, repealed 2005, No. 215 (Adj. Sess.), § 315, which amended this section. 2007, No. 70 , § 31, also repealed 2005, No. 215 (Adj. Sess.), § 315, but did not repeal the amendment to this section by 2005, No. 191 (Adj. Sess.).

§ 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.

HISTORY: Added 2017, No. 73 , § 11a, eff. June 13, 2017.

§ 306. Budget report.

  1. The Governor shall submit to the General Assembly, not later than the third Tuesday of every annual session, a budget that shall embody his or her 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:
      1. 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;
      2. provide an estimated cost of deferred infrastructure maintenance in the State’s transportation system; and
      3. 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:
        1. 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;
        2. 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;
        3. Reach Up funding full benefit obligations, including the standard of need for the current fiscal year, 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;
        4. statutory funding levels from the Property Transfer Tax;
        5. projected fund liabilities of the funds identified in the “Notes” section of the most recent Comprehensive Annual Financial Report (CAFR), including the Workers’ Compensation Fund, the State Liability Insurance Fund, the Medical Insurance Fund, and the Dental Insurance Fund; and
        6. 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.
  2. 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.
  3. 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.
  4. 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 613. P.L. § 560. 1923, No. 7 , § 25.

Amendments

—2019. Subdiv. (a)(1): Added subdiv. (a)(1)(A) designation, and amended generally.

Subdivs. (a)(1)(B) and (a)(1)(C): Added.

—2017. Subsec. (a): Added the fourth sentence.

—2015 (Adj. Sess.). Subsec. (a): Amended generally.

Subsec. (d): Added.

—2013 (Adj. Sess.). Subsec. (a): Added the fourth sentence.

Subsec. (b): Added the second sentence.

—2011. Section amended generally.

—2009 (Sp. Sess.). Subsec. (a): Added the subsection designation.

Subsec. (b): Added.

—1987 (Adj. Sess.) Substituted “annual” for “regular” preceding “session”, inserted “or her” preceding “estimates”, and deleted “for the next two fiscal years” following “state treasury” in the first sentence and added the second and third sentences.

—1973 (Adj. Sess.) Deleted reference to adjourned session and inserted requirement for budget to cover next two fiscal years.

—1969. Added reference to adjourned sessions and deleted reference to “biennial” fiscal year.

Legislative intent for tax expenditures. 2011, No. 45 , § 36(i) provides: “It is the intent of the general assembly in reviewing the tax expenditure budgets recommended by the governor to ensure that any changes to Vermont’s tax expenditures are done openly and equitably and are subject to public review. Vermont tax expenditures are intended to reflect and support Vermont values and policies.”

§ 306a. Purpose of the State budget.

  1. 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 .
  2. 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.
  3. 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.
  4. 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.
  5. 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.

HISTORY: Added 2011, No. 162 (Adj. Sess.), § E.100.1; amended 2015, No. 11 , § 32; 2019, No. 131 (Adj. Sess.), § 291.

History

Amendments

—2019 (Adj. Sess.). Subsec. (a): Deleted the subsec. heading.

—2015. Subsec. (a): Added “and in a manner that supports the population-level outcomes set forth in 3 V.S.A. § 2311 ” in the second sentence.

Subsec. (b): Substituted “use” for “raising and spending” preceding “of public funds”.

Purpose of the State budget. 2011, No. 162 (Adj. Sess.), § E.100.2 provides: “(a) Public participation. The administration will develop a process for public participation in the development of budget goals, as well as general prioritization and evaluation of spending and revenue initiatives. This process shall begin by October 1, 2012.

“(b) Current services. The administration shall develop and publish annually for public review as part of the budget submission process 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. The initial current services budget shall be submitted with the administration’s fiscal year 2014 budget proposal.”

§ 307. Form of budget.

  1. 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.
  2. 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 herein referred to. 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 trust fund 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.
  3. 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.
  4. 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.
  5. 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.

HISTORY: 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.

History

Source.

Subsec. (a): V.S. 1947, § 614. P.L. § 561. 1923, No. 7 , § 25.

Subsec. (b): V.S. 1947, § 615. P.L. § 562. 1923, No. 7 , § 25.

Revision note—

In subdiv. (c)(4) deleted “analysis of the use of resources to meet needs, including future needs and” as this language appeared twice.

Substituted “section 308 of this title” for “section 208” at the end of the third sentence of subsec. (b) to correct the reference.

Amendments

—2017 (Adj. Sess.). Subdiv. (d)(5): Substituted “that reflect consideration of” for “consistent with” preceding “provider” and “ 18 V.S.A. § 9383 ” for “ 18 V.S.A. § 9375a ” at the end.

—2015. Subdiv. (c)(1): Added “that support the relevant population-level outcomes set forth in 3 V.S.A. § 2311 ”.

Subdiv. (c)(2): Amended generally.

Subdiv. (c)(8): Added “and” following “by the plan”.

—2013 (Adj. Sess.). Subdiv. (d)(5): Substituted “expenditure trends reported under 18 V.S.A. § 9375a ” for “hospital budgets approved by the Green Mountain Care Board under 18 V.S.A. chapter 221, subchapter 7” at the end.

—2013. Subdiv. (d)(5): Added “consistent with provider reimbursements approved under 18 V.S.A. § 9376 and hospital budgets approved by the Green Mountain Care Board under 18 V.S.A. chapter 221, subchapter 7.”

—2011. Subsec. (e): Inserted “expenditures and” preceding “charges” and “for enterprise and internal service funds” following “charges” and deleted “for payment to the financial management, workers’ compensation, and facilities operations internal service funds” following “budgets”; deleted the former second and third sentences; and added the present second sentence.

—2009 (Sp. Sess.). Subdiv. (a)(5): Added.

—2005 (Adj. Sess.). Subsec. (d): Substituted “agency of human services” for “department of prevention, assistance, transition, and health access”.

Subdiv. (d)(8): Substituted “agency of human services” for “department of prevention, assistance, transition, and health access”.

—2003 (Adj. Sess.). Subsec. (e): Inserted “the financial management, workers’ compensation, and facilities operations” preceding “internal service funds” and deleted “where the total of such charges exceeds $1,000,000.00” thereafter in the first sentence; deleted “the rates of any” preceding “such charges” in the second sentence and added the third sentence.

—2003. Subsec. (b): Inserted “however budget documentation shall include to the extent possible the following” following “expedient” and added subdivs. (1)-(4).

Subsec. (e): Added.

—2001 (Adj. Sess.) Subsec. (d): Added.

—1993 (Adj. Sess.) Subsec. (c): Added.

—1987. Subsec. (b): Added the third sentence and substituted “the governor” for “he” preceding “may deem expedient” at the end of the fourth sentence.

Worker’s compensation fund charges. 2007, No. 192 (Adj. Sess.), § 5.011(a) provides: “Pursuant to 32 V.S.A. § 307(e) , workers’ compensation fund charges not to exceed $9,086,790 are hereby approved.”

§ 308. General Fund Budget Stabilization Reserve; creation and purpose.

  1. 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.
  2. 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.
  3. 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.
  4. 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.

HISTORY: 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.

History

Revision note—

Substituted “commissioner of finance and management” for “commissioner of finance and information support” in two places in subsec. (d) in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of the commissioner of finance and information support to the commissioner of the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 , Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Amendments

—1997. Subsec. (b): Substituted “determined on a budgetary basis and administered” for “to be administered” following “stabilization reserve” in the first sentence and inserted “budgetary basis” preceding “undesignated general” at the beginning of the second sentence.

Subsec. (c): Amended generally.

Subsec. (d): Substituted “adjustments shall” for “adjustment may” preceding “be made to the” and “amounts” for “transfer” thereafter in the second sentence.

—1993. Added “general fund” preceding “budget stabilization” and substituted “reserve” for “trust fund” thereafter in the section heading.

Subsec. (a): Inserted “general fund” preceding “budget” and substituted “reserving” for “retaining” preceding “certain”.

Subsec. (b): Rewrote the first and second sentences and inserted “general fund” preceding “budget stabilization” and substituted “reserve” for “trust fund” in the third sentence.

Subsec. (c): Substituted “in” for “following” preceding “any fiscal”, inserted “general fund” preceding “budget stabilization” and substituted “reserve” for “trust fund” thereafter and “commissioner of finance and management” for “treasurer” preceding “to the extent”.

Subsec. (d): Deleted “state treasurer and” preceding “commissioner of finance and management” and “as soon as possible after the close of the fiscal year” thereafter.

—1991. Subsec. (b): Substituted “five” for “two” preceding “percent” in the second sentence.

Fiscal year 2021 contingent use of reserve. 2021, No. 9 , § 24 provides: “(a) In fiscal year 2021, if the General Fund is found to have an undesignated fund deficit, the Commissioner of Finance and Management is authorized to transfer not more than $12,600,000.00 from the Human Services Caseload Reserve established in 32 V.S.A. § 308b to offset the undesignated fund deficit prior to making a transfer in accordance with 32 V.S.A. § 308(c) .

“(b) If a transfer from the Human Services Caseload Reserve is made pursuant to subsection (a) of this section, then the Commissioner of Finance and Management shall recommend to the House and Senate Committees on Appropriations that the same amount be transferred from the General Fund to the Human Services Caseload Reserve Fund in the fiscal year 2022 budget adjustment process.”

§ 308a. Transportation Fund Budget Stabilization Reserve; creation and purpose.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. Commencing in fiscal year 2007, interest earned on funds in the Transportation Fund Budget Stabilization Reserve shall be credited to the Transportation Fund.

HISTORY: Added 1993, No. 25 , § 75, eff. May 18, 1993; amended 1997, No. 61 , § 260c; 2005, No. 80 , § 62.

History

Amendments

—2005. Subsec. (e): Added.

—1997. Subsec. (b): Substituted “determined on a budgetary basis and administered” for “to be administered” following “stabilization reserve” in the first sentence and inserted “budgetary basis” preceding “undesignated general” at the beginning of the second sentence.

Subsec. (c): Amended generally.

Subsec. (d): Substituted “adjustments shall” for “adjustment may” preceding “be made to the” and “amounts” for “transfer” thereafter in the second sentence.

CROSS REFERENCES

State Infrastructure Bank Program, see 10 V.S.A. chapter 12, subchapter 11.

§ 308b. Human Services Caseload Reserve.

  1. 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.
  2. The Secretary of Administration may transfer to the Human Services Caseload Reserve any General Fund carry-forward 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.
  3. The Human Services Caseload Reserve shall contain two sub-accounts:
    1. A sub-account for incurred but not reported Medicaid expenses. Each year beginning with fiscal year 2020, 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 Comprehensive Annual Financial Report 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 sub-account 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 subdivision (2) of this subsection. Any increase in the amount of required reserve in subdivision (1) of this subsection shall require a corresponding transfer from the funds reserved in subdivision (2) of this subsection, to the extent there are funds available.

HISTORY: 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.

History

Amendments

—2019 (Adj. Sess.) Subdiv. (c)(1): Deleted “most recently completed” preceding “Comprehensive”, and inserted “for the fiscal year occurring two years prior” following “Report”.

—2019. Subdiv. (c)(1): Inserted “most recently completed” preceding “Comprehensive”, and deleted “as of June 30th of the prior fiscal year” following “Report”.

—2018 (Sp. Sess.). Subsec. (a): Deleted “Management” preceding “Reserve” and “and” following “Living;” and inserted “; and settlement costs associated with managing the Global Commitment waiver” following “Access”.

Subsec. (c): Added.

—2017. Subsec. (b): Substituted “Agency of Human Services” for “Aid to Needy Families with Children (ANFC)” and inserted “, with the exclusion of the Department of Corrections” following “receipts”.

—2013 (Adj. Sess.). Subsec. (b): Deleted the former second sentence.

—2009 (Adj. Sess.) Subsec. (a): Deleted “and” preceding “of disabilities” and “in the office” preceding “of Vermont health” in the last sentence.

—2009. Subsec. (c): Repealed.

—2007. Subsec. (a): Inserted “of mental health” preceding “and of disabilities” in the third sentence.

—2005 (Adj. Sess.). Subsec. (a): Substituted “for children and families, of health, and of disabilities, aging, and independent living, and in the office of Vermont health access” for “of prevention, assistance, transition, and health access, social and rehabilitation services, and developmental and mental health services”.

—1999 (Adj. Sess.) Subsec. (a): Substituted “departments of prevention, assistance, transition, and health access” for “departments of social welfare”.

Fiscal year 2021 contingent use of reserve. 2021, No. 9 , § 24 provides: “(a) In fiscal year 2021, if the General Fund is found to have an undesignated fund deficit, the Commissioner of Finance and Management is authorized to transfer not more than $12,600,000.00 from the Human Services Caseload Reserve established in 32 V.S.A. § 308b to offset the undesignated fund deficit prior to making a transfer in accordance with 32 V.S.A. § 308(c) .

“(b) If a transfer from the Human Services Caseload Reserve is made pursuant to subsection (a) of this section, then the Commissioner of Finance and Management shall recommend to the House and Senate Committees on Appropriations that the same amount be transferred from the General Fund to the Human Services Caseload Reserve Fund in the fiscal year 2022 budget adjustment process.”

§ 308c. General Fund and Transportation Fund Balance Reserves.

  1. 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 five 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, 50 percent of any such funds shall be reserved as necessary and transferred from the General Fund to the Vermont State Employees’ Postemployment Benefits Trust Fund established by 3 V.S.A. § 479a .

  2. Use of General Fund Balance Reserve.
    1. The General Assembly may specifically appropriate the use of up to 50 percent of the amounts added in the prior fiscal year from the General Fund Balance Reserve to fund unforeseen or emergency needs.
    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 general appropriations act or budget adjustment act, funds in the General Fund Balance Reserve may be appropriated to compensate for a reduction of revenues.
  3. 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.
  4. 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.

HISTORY: 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. 1 79 (Adj. Sess.), § D.104, eff. June 9, 2014; 2018, No. 11 (Sp. Sess.), § D.107; 2019, No. 6 , § 89, eff. April 22, 2019.

History

Amendments

—2019. Subdiv. (a)(3): Substituted “Vermont State Employees’ Postemployment Benefits Trust Fund established by 3 V.S.A. § 479a ” for “Retired Teachers’ Health and Medical Benefits Fund established by 16 V.S.A. § 1944b to reduce any outstanding balance of any interfund loan authorized by the State Treasurer from the General Fund. Upon joint determination by the Commissioner of Finance and Management and the State Treasurer that there is no longer any outstanding balance, no further transfers in accordance with this subdivision shall occur”.

—2018 (Sp. Sess.). Subdivs. (a)(1), (a)(2): Repealed.

—2013 (Adj. Sess.). Section amended generally.

—2013. Subdiv. (a)(2): Inserted “reserve” preceding “in fiscal”.

Subdiv. (a)(3): Inserted “in fiscal year 2013” following “reserve”.

—2011 (Adj. Sess.). Section heading: Substituted “balance” for “surplus” following “fund”.

Subsec. (a): Subsection amended generally and subdivs. (1)-(3) added.

Subsec. (b): Substituted “balance” for “surplus” preceding “reserve” at the end of the first sentence.

Subsecs. (c), (d): Added.

—2009. Subsec. (a): Inserted “not to exceed one percent of the appropriations from the general fund for the prior fiscal year” following “general fund surplus” in the second sentence.

Subsec. (c): Deleted.

—2007. Subsec. (a): Added the present second sentence; and substituted “shall be available for appropriation by the general assembly” for “shall not be expended except by specific appropriation of the general assembly” in the third sentence.

Subsec. (b): Added the present second sentence and substituted “available for” for “expended except by” preceding “appropriation” and “by” for “of” following “appropriation” near the end of the third sentence.

Repeal of sunset date. 2011, No. 162 (Adj. Sess.), § D.103.1, which provided for the repeal of subdivs. (a)(1) through (a)(3) of this section, effective June 30, 2014, was repealed by 2013, No. 179 (Adj. Sess.), § D.105(a).

§ 308d. Repealed. 2011, No. 162 (Adj. Sess.), § D.103.1(c).

History

Former § 308d. Former § 308d, relating to revenue shortfall reserve; creation and purpose, was derived from 2007, No. 192 (Adj. Sess.), § 6.031 and amended by 2009, No. 4 , § 97.

§ 308e. 27/53 Reserve.

    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. (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.
  1. 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.
  2. 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.

HISTORY: Added 2015, No. 172 (Adj. Sess.), § B.1105.

§ 309. Capital budget report.

  1. 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. Subdivision (a)(1) effective until July 1, 2023; see also subdivision (a)(1) effective July 1, 2023 set out below.

      Activities proposed for funding by general obligation debt financing shall be restricted to tangible capital investments, but may include the planning, design, and engineering directly associated with a tangible capital investment.

      (1)

      Subdivision (a)(1) effective July 1, 2023; see also subdivision (a)(1) effective until July 1, 2023 set out above.

      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 hereinabove. The latter operating expenses shall be accounted for in the Governor’s annual general operating budget request.
  2. 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.
  3. 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.
  4. [Repealed.]
  5. 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.

HISTORY: 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. July 1, 2023; 2013, No. 142 (Adj. Sess.), § 57; 2019, No. 14 , § 72, eff. April 30, 2019.

History

Amendments

—2019. Subsec. (e): Added subsec. heading.

—2013 (Adj. Sess.). Subsec. (e): Added.

—2013. In subdiv. (a)(1), effective until July 1, 2014, inserted “, and engineering” following “design”.

In subdiv. (a)(1), effective July 1, 2014, deleted the comma following “planning”, inserted “and” preceding “design” and deleted “, and engineering” following “design”.

—2011 (Adj. Sess.) Section amended generally.

—2011. Subsec. (a): Substituted “third Tuesday” for “second week”.

—2009 (Adj. Sess.) Subsec. (d): Repealed.

—1999. Subsec. (d): Added.

—1993. Subsec. (a): Amended generally.

—1991 (Adj. Sess.). Subsec. (c): Added.

Effective date of amendments to subdiv. (a)(1). 2021, No. 50 , § 24 provides that the amendments to subdiv. (a)(1) of this section by 2013, No. 1 , § 97 shall take effect on July 1, 2023. Previously, 2013, No. 1 , § 100(c) had provided for the amendments to take effect on July 1, 2014; that date was extended to July 1, 2015 by 2013, No. 179 (Adj. Sess.), § E.113.1; to July 1, 2017 by 2015, No. 58 , § E.113.1; to July 1, 2018 by 2017, No. 84 , § 29; to July 1, 2019 by 2017, No. 190 (Adj. Sess.), § 19; to July 1, 2020 by 2019, No. 42 , § 25; and to July 1, 2021 by 2019, No. 139 (Adj. Sess.), § 19.

Effect of section on agreements with holders of bonds or notes issued on or before July 1, 1990. 1989, No. 258 (Adj. Sess.), § 5, provided: “This act [which added this section and sections 310, 701a, 1000 and 1001 of this title] shall not be construed or interpreted to limit or alter the rights of the state or any instrumentality to fulfil the terms of any agreements made with the holders of any bonds, notes or other obligation of the state or such instrumentality issued and outstanding on or prior to the effective date of the act (July 1, 1990), or in any way to impair the rights and remedies of such holders.”

§ 310. Form of annual capital budget and 10-year capital program plan.

  1. 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.
  2. 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.
      1. Capital needs and projections shall be based upon current and projected statistics on capital inventories and upon State demographic and economic conditions.
      2. Capital funding shall be categorized as follows:
        1. State buildings, facilities, land acquisitions, major maintenance, renewable energy sources, and conservation;
        2. higher education;
        3. aid to municipalities for education, environmental conservation, including water, sewer, and solid waste projects, and other purposes; and
        4. transportation facilities.
      3. 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.
      4. Capital needs and projections shall be presented independently of financing requirements or opportunities.
      5. Capital needs and projections shall include an estimated cost of deferred infrastructure maintenance in State buildings and facilities.
    2. Comprehensive cost and financing assessment.
      1. 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. 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.
      2. 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.
      3. 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.
      4. 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.
      5. 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.
      6. Alternative methods of financing capital programs and projects should be described and assessed, including debt financing and use of current revenues.

HISTORY: 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.

History

Amendments

—2019. Subsec. (b): Substituted “Capital” for “The capital” at the beginning of subdiv. (b)(1)(C) and added subdiv. (b)(1)(E).

—2013. Substituted “ten-year” for “six-year” in section heading; substituted “ten-year” for “six year” and “nine” for “five” in subsec. (a); substituted “biennium” for “fiscal year” and “’ten-year” for “six year” in subsec. (b); deleted ”’and” following “facilities” and added “major maintenance, renewable energy sources, and conservation” following “acquisitions” in subdiv. (1)(B)(i); and substituted “nine” for “five” in subdivs. (1)(C) and (2)(B).

—2011 (Adj. Sess.) Section amended generally.

Effect of section on agreements with holders of bonds or notes issued on or before July 1, 1990. 1989, No. 258 (Adj. Sess.), § 5, provided: “This act [which added this section and sections 309, 701a, 1000 and 1001 of this title] shall not be construed or interpreted to limit or alter the rights of the state or any instrumentality to fulfil the terms of any agreements made with the holders of any bonds, notes or other obligation of the state or such instrumentality issued and outstanding on or prior to the effective date of the act [July 1, 1990], or in any way to impair the rights and remedies of such holders.”

Ten-year capital program plan. 2013, No. 51 , § 35 provides: “On or before January 15, 2014, the Commissioner of Buildings and General Services, in consultation with the House Committee on Corrections and Institutions and the Senate Committee on Institutions, shall develop a proposal for the planning process for a ten-year capital program plan. The ten-year capital program plan shall include proposals for capital construction requests and major maintenance, and shall set forth definitions and criteria to be used for prioritizing capital projects. Projects may be prioritized based on criteria including: critical priorities, prior capital allocations or commitments, strategic investments, and future investments.”

§ 311. Retirement funds integrity report.

  1. 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.
  2. 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) .

HISTORY: 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.

History

Revision note—

In the first sentence, substituted “section 471(n)” for “section 471(m)” and “section 1942(r)” for “section 1942(q)” to correct errors in the references.

Amendments

—2015 (Adj. Sess.). Subsec. (b): Deleted the final sentence.

—2013 (Adj. Sess.). Subsec. (b): Inserted “on” following “Government Operations or”, and added the second sentence.

—2009 (Sp. Sess.). Subsec. (a): Added “and board estimates for current obligations for retiree health care costs” at the end of the first sentence, and inserted “for retirement obligations and retiree health care” following “retirement systems” in the second sentence.

—2005 (Adj. Sess.). Subsec. (b): Amended generally.

—2005. Designated the existing provisions of the section as subsec. (a), and in that subsection, substituted “subsection 471(n)” for “section 471(n)” and “subsection 1942(r)” for “section 1942(r)” in the first sentence, and added subsec. (b).

§ 312. Tax expenditure report.

  1. 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.
  2. 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.
  3. [Repealed.]
  4. 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, no later than one year after its determination, that it will cease implementation or enforcement of the tax expenditure.

HISTORY: 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.

History

Revision note

—2020. In subsec. (b), substituted “Office of Legislative Counsel” for “Office of Legislative Council” in accordance with 2019, No. 144 (Adj. Sess.), § 12(1).

Editor’s note

—2014. The text of subsec. (b) is based on the harmonization of two amendments. During the 2013 Adjourned Session, this subsection was amended twice, by Act Nos. 142 and 200, resulting in two versions of this subsection. In order to reflect all of the changes enacted by the Legislature during the 2013 Adjourned Session, the text of Act Nos. 142 and 200 was merged to arrive at a single version of the subsection. The changes that each of the amendments made are described in the amendment notes set out below.

Amendments

—2019 (Adj. Sess.). Subsec. (b): Deleted the subsec. heading.

—2019. Subsec. (b): Introductory paragraph amended generally.

—2017. Subdiv. (a)(4): Inserted “revenue forgone” at the beginning.

Subsec. (b): Inserted “and” preceding “motor vehicle” in the second sentence.

—2013 (Adj. Sess.). Subsec. (a): Act 200 substituted “credit, preferential rate, or deferral of liability” for “or credit” following “exclusion, deduction,”, and inserted “Tax expenditures shall not include the following:” at the end.

Subdivs. (a)(1)-(a)(4), (b)(5), and (b)(6): Added by Act No. 200.

Subsec. (b): Act No. 142 added the third sentence.

Subsec. (b): Act No. 200 inserted “on” preceding “Appropriations” twice, and deleted “, and such other tax expenditures for which the Joint Fiscal Office and the Department of Taxes jointly have produced revenue estimates” at the end of the first sentence.

Subsec. (d): Act No. 200 inserted “as defined in subsection (a) of this section,” following “Every tax expenditure,” and added the fourth sentence.

—2013. Subsec. (d): Added.

—2011. Subsec. (c): Deleted.

—2009 (Adj. Sess.) Subsec. (b): Inserted “and the joint fiscal office” following “department of taxes”, inserted “taxes” following “corporate income”, “tax” following “use”, deleted “returns” preceding “insurance premium”, “and” preceding “bank franchise”, “returns, and” preceding “education property” and substituted “diesel fuel tax, gasoline tax, motor vehicle purchase and use tax” for “grand lists” in the first sentence, and added the second sentence.

—2007 (Adj. Sess.). Subsec. (c): Added.

—2005 (Adj. Sess.). Subsec. (b): Added “insurance premium tax and bank franchise tax returns” following “meals and rooms tax returns”.

§ 313. Repealed. 2009, No. 19, § 4.

History

Former § 313. Former § 313, relating to grant reports, was derived from 2009, No. 19 , § 2 and amended by 2011, No. 75 (Adj. Sess.), § 115. For present provisions, see § 314 of this title.

§ 314. Grant report.

  1. 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.
  2. Grant reports issued under this section shall be public records available for inspection and review.
  3. 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.

HISTORY: Added 2009, No. 19 , § 3, eff. July 1, 2014; amended 2011, No. 75 (Adj. Sess.), § 116, eff. March 7, 2012.

History

Amendments

—2011 (Adj. Sess.) Subsec. (a): Substituted “state fiscal” for “calendar” in the first sentence.

§ 315. Repealed. 2019, No. 49, § 12, eff. June 10, 2019.

History

Former § 315. Former § 315, relating to annual report; information technology, was derived from 2015, No. 58 , § E.145.

Chapter 7. The Public Monies

History

Abolition of department of finance and information support; transfer of duties, responsibilities, and authority. Executive Order No. 35-87, Aug. 6, 1987, provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of that entity to the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A § 2002. Executive Order No. 35-87, was revoked and rescinded by E.O. 06-05 (No. 3-46).

Redesignation of commissioner of finance and information support as commissioner of finance and management. For the purpose of conforming the statutory provisions to the structure of the agency of administration as reorganized in 1987 by Executive Order No. 35-87, 1987, No. 243 (Adj. Sess.), § 59, eff. June 13, 1988, provided for the amendment of this chapter by substituting “commissioner of finance and management” for “commissioner of finance and information support” throughout the chapter. The section directed the statutory revision commission to so change the text as sections are amended or reprinted. Executive Order 35-87 to which this note refers was revoked and rescinded by E.O. 06-05 (No. 3-46).

Subchapter 1. Accounting

§ 401. Accounts.

  1. 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.
  2. 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.
  3. 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.

HISTORY: 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.

History

Source.

Subsec. (a): V.S. 1947, § 537. P.L. § 482. G.L. § 543. P.S. § 375. V.S. § 269. R.L. § 187. G.S. 8, § 4. R.S. 8, § 3.

Subsec. (b): V.S. 1947, § 538. 1939, No. 9 , § 6. P.L. § 483. 1923, No. 7 , § 40.

Revision note—

In subsec. (a), substituted “department of finance and management” for “department of finance and information support” in light of Executive Order No. 35-87, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of that entity to the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Amendments

—2015 (Adj. Sess.). Subsec. (c): Substituted “§ 11” for “§ 8”, “ensure” for “insure”, and “preceding” for “proceeding”; and deleted “and apply” following “each year maintain”.

—1987 (Adj. Sess.) Deleted “relative to a cash basis of accounting” preceding “that insure” in subsec. (c) and substituted “commissioner of finance and management” for “commissioner of finance and information support” throughout the section.

—1983 (Adj. Sess.) Inserted “and information support” following “department of finance” and “commissioner of finance” throughout the section.

—1981. Subsec. (c): Changed “highway fund” to “transportation fund”.

—1979. Subsec. (a): Substituted “commissioner of finance” for “finance director” and department of “finance” for “administration”.

Subsec. (b): Substituted “commissioner of finance” for “finance director”.

Subsec. (c): Added.

—1959 (Adj. Sess.) Subsec. (a): Substituted “finance director of the department of administration” for “treasurer”.

Subsec. (b): Substituted “finance director” for “auditor.”

§ 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.

HISTORY: Amended 1967, No. 154 , § 1.

History

Source.

V.S. 1947, § 539. P.L. § 484. G.L § 544. P.S. § 376. V.S. § 270. R.L. § 188. G.S. 8, § 5. 1860, No. 53 , § 1. G.L. § 635. P.S. § 482. V.S. § 350. R.L. § 261. G.S. 12, § 76.

Revision note

—2007. Revised to read “The treasurer and commissioner of finance and management” and substituted “paying him money” to “for money paid” to achieve gender neutrality.

Amendments

—1967. “Receipts” substituted for “duplicate receipts” in the section heading and section text rewritten to provide for single receipt.

§ 403. Repealed. 1959, No. 328 (Adj. Sess.), § 35(g).

History

Former § 403. Former § 403, relating to debit and credit, was derived from V.S. 1947, § 544; P.L. § 489; G.L. § 549; P.S. § 381; V.S. § 274; R.L. § 192; G.S. 8, § 9; R.S. 8, § 5; R. 1797, p. 483, 484, §§ 11, 12; R. 1787, p. 23.

§ 404. Returned payments; penalty.

  1. 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.
  2. 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.

HISTORY: 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.

History

Amendments

—2017. Subsecs. (a) and (b): Added the subsection designations.

Subsec. (b): Substituted “chapter 7, subchapter 5” for “subchapter 5 of chapter 7” preceding “of this title”.

—2013 (Adj. Sess.). Section amended generally.

—1997. Section amended generally.

—1993. Subsec. (a): Inserted “or agency of transportation, including the department of motor vehicles” following “taxes”.

Subsec. (b): Inserted “or the agency of transportation, including the department of motor vehicles” preceding “returned on” and “and the agency of transportation (including the department of motor vehicles)” preceding “shall be entitled” and added “or agency” following “department”.

—1991 (Adj. Sess.) Designated existing provisions of the section as subsec. (a), inserted “other than checks to the department of taxes” preceding “returned” and “or uncollected” preceding “funds” in that subsection, and added subsec. (b).

—1989 (Adj. Sess.) Substituted “$7.00” for “$5.00” following “penalty of”.

CROSS REFERENCES

Civil remedies for issuance or passing of bad checks, see 9 V.S.A. § 2311 .

Criminal penalties for issuance or passing of bad checks, see 13 V.S.A. § 2022 .

Subchapter 2. Management

§ 431. Depositories of State funds.

  1. 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.
  2. 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 547. 1939, No. 9 , § 9. P.L. § 492. 1923, No. 17 . G.L. § 553. 1908, No. 18 , § 2. P.S. § 385. V.S. § 278. R.L. § 196. G.S. 8, § 13. 1860, No. 53 , § 6.

Amendments

—2007 (Adj. Sess.) Subsec. (a): Deleted “the auditor” following “treasurer” in the first sentence, and deleted the last sentence.

—2003. Subsec. (a): Added the subsection designation.

Subsec. (b): Added.

—1989. Substituted “$10,000,000.00” for “$2,000,000.00” in the first sentence.

—1977 (Adj. Sess.) Substituted “$2,000,000.00” for “$200,000.00”.

§ 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.

HISTORY: Amended 2007, No. 121 (Adj. Sess.), § 26.

History

Source.

V.S. 1947, § 550. P.L. § 495. G.L. § 559. 1908, No. 18 , § 3. P.S. § 395. V.S. § 288. 1882, No. 121 , § 1.

Amendments

—2007 (Adj. Sess.) Deleted “and auditor of accounts” following “governor”.

§ 433. Investments of State money.

  1. 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.
  2. 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.
  3. 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 551. 1943, No. 10 , § 1. 1939, No. 9 , § 10. P.L. § 496. 1933 S., No. 1, § 1. 1933, No. 124 , § 20. 1921, No. 23 , § 1. G.L. § 560. 1908, No. 18 , § 4. P.S. § 396. V.S. § 290. 1882, No. 121 , § 3.

References in text.

The Investment Company Act of 1940, referred to in subdiv. (a)(8), is codified at 15 U.S.C. § 80a -1 et seq.

Amendments

—2009 (Adj. Sess.). Subdiv. (a)(2): Inserted “, community development credit unions as defined in 8 V.S.A. § 30101 ,” following “banks”.

—2005. Subsec. (a): Amended generally.

—1991 (Adj. Sess.) Section amended generally.

Vermont Community Loan Fund Investment. 2013, No. 50 , § E.131.1 provides: “(a) Notwithstanding 32 V.S.A. § 433 , the State Treasurer is authorized to invest up to $500,000 of short-term operating or restricted funds in the Vermont Community Loan Fund on terms acceptable to the Treasurer and consistent with 32 V.S.A. § 433 (b).”

§ 434. Investment of certain funds.

    1. A Trust Investment Account is hereby created to maximize the earnings of individual funds by associating them together for common investment. (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:
      1. 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;
      2. 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
      3. 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 9 V.S.A. chapter 147. 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.
  1. 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 9 V.S.A. chapter 147.

HISTORY: 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.

History

Former § 434. Former § 434, relating to investment of certain funds, was derived from 1957, No. 218 ; amended by 1975, No. 243 (Adj. Sess.), § 3; and repealed by 1997, No. 147 (Adj. Sess.), § 261b.

References in text.

9 V.S.A. chapter 147, referred to in subdiv. (a)(3) and subsec. (b), was repealed by 2009, No. 20 , § 29.

Revision note

—2013. In subdiv. (a)(2)(B), deleted “but not limited to,” following “including” in accordance with 2013, No. 5 , § 4.

Amendments

—2015 (Adj. Sess.). Subdiv. (a)(5): Added the second sentence.

—2011 (Adj. Sess.). Subdiv. (a)(5): Substituted “house committee on ways and means and the senate committee on finance” for “general assembly”.

—2003 (Adj. Sess.). Subdiv. (a)(5): Inserted “to the general assembly” following “report”.

§ 435. General Fund.

  1. 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.
  2. 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. electrical energy tax levied pursuant to chapter 213 of this title;
    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. revenues from the Racing Special Fund consistent with 31 V.S.A. § 630 ;
    10. 33 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.

HISTORY: 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.

History

References in text.

The last active provision of chapter 213 of this title, referred to in subdiv. (b)(3), was repealed by 2019, No. 51 , § 40(2), eff. June 10, 2019.

31 V.S.A. § 630 , referred to in subdiv. (b)(9), was repealed by 2019, No. 128 (Adj. Sess.), § 15.

Amendments

—2019. Subdiv. (b)(7): Substituted “69 percent” for “75 percent” at the beginning.

—2018 (Sp. Sess.). Subdiv. (b)(7): Substituted “75 percent of the meals” for “Meals”.

Subdiv. (b)(11): Repealed.

—2017. Subdiv. (b)(9): Act No. 74 inserted “Special” preceding “Fund” and substituted “630” for “611” following “31 V.S.A.”.

Subdiv. (b)(11): Act No. 85 substituted “64” for “65” preceding “percent”.

—2011 (Adj. Sess.). Subdiv. (b)(11): Substituted “65 percent” for “Two thirds”.

—2005 (Adj. Sess.). Subdiv. (b)(8): Repealed.

—2003. Subdiv. (b)(11): July 1, 2004 substituted “two-thirds of the revenue from sale” for “sales”.

—1999 (Adj. Sess.). Subdiv. (b)(2): Repealed by Act No. 152.

Subdiv. (b)(10): Act No. 66 substituted “revenue from” for “first $500,000.00 of” preceding “the gains”.

—1999. Subdiv. (b)(10): Substituted “33 percent” for “32.56 percent”.

—1997 (Adj. Sess.). Subdiv. (b)(10): Substituted “32.56 percent of the revenue from the property” for “Property” at the beginning of the subsection.

—1977 (Adj. Sess.) Subsec. (b): Deleted subdiv. (8) which related to old age assistance tax and subdivs. (9)-(13) renumbered as (8)-(12).

—1975 (Adj. Sess.) Subdiv. (a)(11): Added the words “and the first $500,000.00 of the gains taxes levied each year pursuant to chapter 236 of this title”.

1997 (Adj. Sess.). 1997, No. 156 (Adj. Sess.), § 44, provides, in part, that the amendment to this section by Act No. 156 shall not be construed to alter or amend the appropriations in §§ 228 (housing and conservation trust fund) and 266 (transfers of property transfer tax revenues) of Act No. 147, the fiscal year 1999 general appropriations act.

Effective date and applicability of subdiv. (b)(11). 2017, No. 85 , § H.9(d) provides: “Secs. H.3 and H.4 (sales tax allocation) [which amends 16 V.S.A. § 4025 and this section] shall take effect on July 1, 2018 and apply to fiscal year 2019 and after.”

§ 435a. Tobacco Litigation Settlement Fund.

  1. 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.
  2. 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.
  3. 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).

HISTORY: 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 heretofore or hereafter created by the Legislature such available amounts as he or she may determine to be necessary or desirable for the purpose of defraying the expenses of government, including the payment of notes issued for such purposes. Such 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 shall fall on a Saturday or Sunday, and ending on January 10 of the succeeding year. No later than the last day of the period during which the funds were borrowed, the State Treasurer shall transfer to any such fund from which such initial borrowing has been made an amount equal to such borrowed amount, together with interest thereon at such rate as the State Treasurer in his or her sole discretion shall determine.

HISTORY: Added 1997, No. 61 , § 254; amended 2005, No. 71 , § 34a.

History

Amendments

—2005. Amended the second and third sentences generally.

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.

HISTORY: 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.

History

Source.

V.S. 1947, § 543. P.L. § 488. 1919, No. 21 , § 1. G.L. § 548. 1917, No. 254 , § 536. 1908, No. 19 . P.S. § 380. V.S. § 273. R.L. § 191. 1865, No. 2 , § 4. G.S. 8, § 8. R.S. 8, § 4. R. 1797, p. 490, § 20. 1790, p. 3.

Revision note—

Reference to “director’s” in the section heading and to “finance director” in text changed to “commissioner’s” and “commissioner of finance” respectively to conform references to new title and reorganization of State government. See 3 V.S.A. chapter 45.

Amendments

—1987 (Adj. Sess.) Substituted “commissioner of finance and management” for “commissioner of finance and information support”.

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance”.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor of accounts”.

ANNOTATIONS

Collateral attack of allowances.

State Auditor’s allowance of claim cannot be corrected in collateral proceeding for mere errors of accounting, unless they were induced by claimant’s fraud or misstatement. State v. Howard, 83 Vt. 6, 74 A. 392, 1909 Vt. LEXIS 222 (1909).

Generally, discretionary acts of State Auditor within his jurisdiction are as conclusive as judgments of court, for rule against collateral attacks of judicial decisions applies to decisions of officers who act judicially, though not sitting as judicial tribunals. State v. Howard, 83 Vt. 6, 74 A. 392, 1909 Vt. LEXIS 222 (1909).

Conclusiveness of allowances.

Where State Auditor, in good faith, allows claim on information fairly tending to establish it, whether already in his possession or obtained by present inquiry, his decision will be conclusive. State v. Howard, 83 Vt. 6, 74 A. 392, 1909 Vt. LEXIS 222 (1909).

Allowance by State Auditor which might have been impeached collaterally may be made conclusive by payment, under general rule that if, with full knowledge of facts, one voluntarily pays money that he is under no legal obligation to pay, he cannot recover it. State v. Howard, 83 Vt. 6, 74 A. 392, 1909 Vt. LEXIS 222 (1909).

One who wrongfully has obtained money from State Treasury cannot stand on conclusiveness of State Auditor’s allowance, as State will not be bound by allowance procured by fraud, or due to Auditor’s misapprehension that resulted from a misleading, though not fraudulent, statement of claimant. State v. Howard, 83 Vt. 6, 74 A. 392, 1909 Vt. LEXIS 222 (1909).

Performance of duties.

State Auditor’s duty is not performed by merely exacting that claims be itemized, sworn to, and supported by vouchers as required by statute, but he must scrutinize the account in light of his general information regarding conditions that bear on the justness of the charges, and if he has reason to question a duly verified claim, with no knowledge that can serve as a test of its correctness, he should make special inquiry. State v. Howard, 83 Vt. 6, 74 A. 392, 1909 Vt. LEXIS 222 (1909).

Validity of allowances.

Improper presentation of an account against the State does not prevent the State Auditor from making a valid allowance thereof where all the facts are known to him. State v. Howard, 83 Vt. 6, 74 A. 392, 1909 Vt. LEXIS 222 (1909).

Notes to Opinions

Construction with other laws.

Legislature by 21 V.S.A. § 1365 has authorized State Treasurer to disburse monies otherwise than as required by this section. 1950 Vt. Op. Att'y Gen. 238.

§ 462. Appropriation required.

  1. 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.
  2. 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 566. P.L. § 512. 1933, No. 157 , § 453. 1923, No. 7 , § 27. 1919, No. 21 , § 5.

Revision note—

Reference to “finance director” changed to “commissioner of finance” to conform reference to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—1997 (Adj. Sess.). Act No. 66, in the first sentence, deleted “and” preceding “rebates”, added “or unless otherwise specified by statute”, and deleted “made at each biennial session of the general assembly or any special session within the biennial period” following “appropriation”; in the second sentence substituted “as authorized under” for “for the payment of specific appropriations duly made in pursuance of”; in the third sentence deleted “has been audited and found correct and that the same” preceding “is approved”.

Act No. 147 added subsec. (a) designation and added subsec. (b).

—1987 (Adj. Sess.) In the second and third sentences, substituted “commissioner of finance and management” for “commissioner of finance and information support”.

—1985 (Adj. Sess.) Inserted “and rebates payable to the United States Treasury Department in accordance with the provisions of section 476” following “trust” in the first sentence.

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance” in the second and third sentences.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor of accounts”.

CROSS REFERENCES

Drawing of monies from Treasury generally, see Vt. Const. Ch. II, § 27.

Appropriations generally, see chapter 9 of this title.

ANNOTATIONS

Equitable liens.

Section does not prevent paying out monies held by State Treasury subject to attorney’s equitable lien without legislative enactment. Button v. Anderson, 112 Vt. 531, 28 A.2d 404, 1942 Vt. LEXIS 158 (1942).

Notes to Opinions

Specific appropriations.

State Highway Commissioner had no authority, in 1931, to expend out of highway maintenance fund monies authorized to be expended for specific purpose by act of 1921. 1930-32 Vt. Op. Att'y Gen. 71.

Trust accounts.

Section does not apply to trustee accounts in the Vermont old age assistance department whereby department, pursuant to agreement with recipients of aid, places specified sums belonging to recipients in trust account, such sums being permitted recipients for emergency use, with unexpended balances going to State after death, and therefore such trust accounts need not be covered into Treasury or disbursed only upon warrant of Auditor. 1944-46 Vt. Op. Att'y Gen. 120.

§ 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 560. P.L. § 504. 1933, No. 157 , § 445. G.L. § 578. P.S. § 411. V.S. § 305. 1892, No. 8 , § 1.

Revision note—

Reference to “finance director” changed to “commissioner of finance” to conform reference to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—2007. Deleted “and the commissioner of human resources” following “management” and substituted “him or her” for “them”.

—2003 (Adj. Sess.). Substituted “commissioner of human resources” for “commissioner of personnel”.

—1995 (Adj. Sess.) Inserted “and the commissioner of personnel” following “management” and made a minor change in phraseology.

—1987 (Adj. Sess.) At the beginning of the section, substituted “commissioner of finance and management” for “commissioner of finance and information support”.

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance”.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor”.

ANNOTATIONS

Evidence.

Evidence that orders drawn by Auditor and charged to his account during time that respondent was in office greatly exceeded amount of itemized vouchers furnished by him was admissible as tending to show that respondent made no examination, or, if he did, that he did not report true result thereof to General Assembly. State v. Williams, 94 Vt. 423, 111 A. 701, 1920 Vt. LEXIS 229 (1920).

Status of vouchers.

Receipted bills for alleged livery hire, filed with State Auditor by railroad commissioner as expense vouchers, but which represented only charges for use of his own team, were fictitious and should not have been treated as vouchers. State v. Howard, 83 Vt. 6, 74 A. 392, 1909 Vt. LEXIS 222 (1909).

Vouchers used, filed, and kept as required by this section are public documents. Clement v. Graham, 78 Vt. 290, 63 A. 146, 1906 Vt. LEXIS 151 (1906).

§ 464. Itemized statements and receipts required.

When required by the Commissioner of Finance and Management and before payment therefor 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 such 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.

HISTORY: 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.

History

Source.

1951, No. 13 . V.S. 1947, § 561. P.L. § 505. 1919, No. 19 , § 1. G.L. § 579. P.S. § 412. 1906, No. 213 , § 1. 1904, No. 171 , § 1. 1896, No. 123 , § 6.

Revision note—

Reference to “finance director” changed to “commissioner of finance” to conform reference to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—2009. Inserted “or, if specifically authorized by the commissioner of finance and management, by electronic signature as defined at 9 V.S.A. § 271(9) ” following “written declarations”.

—2007. Deleted the former second sentence.

—2003 (Adj. Sess.). Substituted “commissioner of human resources” for “commissioner of personnel” in the last sentence.

—1995 (Adj. Sess.) Added the second sentence.

—1993 (Adj. Sess.) Section amended generally.

—1987 (Adj. Sess.) Substituted “commissioner of finance and management” for “commissioner of finance and information support” in the first and second sentences.

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance” throughout the section.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor”.

Notes to Opinions

Construction.

Provisions of section are mandatory and requirements enumerated must be satisfied as to all claims for lodging and subsistence submitted by State Police pursuant to 20 V.S.A. § 1881 that have been approved by Commissioner of Public Safety. 1948-50 Vt. Op. Att'y Gen. 195.

§ 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. He or she shall issue his or her warrant conformably hereto, and no other officer shall issue a warrant on the State Treasurer.

HISTORY: 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.

History

Source.

V.S. 1947, § 574. P.L. § 521. G.L. § 601. 1917, No. 254 , § 588. P.S. § 435. V.S. § 327. R.L. § 240.

Revision note—

Reference to “finance director” changed to “commissioner of finance” to conform reference to new title and reorganization of State government. See 3 V.S.A. chapter 45.

Amendments

—1987 (Adj. Sess.) At the beginning of the section, substituted “commissioner of finance and management” for “commissioner of finance and information support”.

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance” in the first sentence.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor”.

ANNOTATIONS

Judicial review.

Public officer’s decision which rests solely on construction of statute does not involve that exercise of judgment which exempts from judicial review. State v. Howard, 83 Vt. 6, 74 A. 392, 1909 Vt. LEXIS 222 (1909).

Notes to Opinions

Construction with other laws.

Section is in conflict with provisions of 21 V.S.A. § 1365 , which directs the Treasurer to transfer funds on the request of the Vermont Unemployment Compensation Commission, and to the extent of the conflict, 21 V.S.A § 1365 controls. 1948-50 Vt. Op. Att'y Gen. 238.

§ 466. Requisitions.

  1. 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 his or her warrant on the Treasurer for funds necessary for such expenses. Such advances shall not be made until such 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 such bond shall be paid by the State.
  2. 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 and regulations established by the State Treasurer.
  3. 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 576. P.L. § 523. 1919, No. 21 , § 6. G.L. § 604. 1917, No. 31 .

Amendments

—2009. Subsec. (a): Deleted the fourth sentence.

—1987 (Adj. Sess.) Substituted “commissioner of finance and management” for “commissioner of finance and information support” wherever it appeared in the first paragraph.

—1987. Substituted “the governor’s” for “his” preceding “delegated representatives” at the end of the first sentence of the second paragraph and added the third paragraph.

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance” throughout the first paragraph.

—1979 (Adj. Sess.) Substituted “commissioner of finance” for “finance director” wherever it appeared and added last paragraph relating to advancement of funds for travel.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor” and “auditor of accounts”.

§ 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 567. P.L. § 514. 1933, No. 157 , § 455. G.L. § 586. P.S. § 419. V.S. § 310. R.L. § 223. G.S. 8, § 45. 1860, No. 53 , § 11. G.L. § 636. P.S. § 483. R. 1906, § 436. V.S. § 351. R.L. § 262. G.S. 12, § 77. 1846, No. 25 , § 6.

Revision note—

Reference to “finance director” changed to “commissioner of finance” to conform reference to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—2009 (Adj. Sess.) Substituted “superior court” for “county” preceding “clerks” in the section heading, and deleted “his or her” preceding “a warrant”, substituted “superior court clerk” for “county clerk” and “the clerk” for “such clerk” in the first sentence.

—1987 (Adj. Sess.) At the beginning of the first sentence, substituted “commissioner of finance and management” for “commissioner of finance and information support”.

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance” in the first sentence.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor of accounts”.

§ 468. Repealed. 1959, No. 328 (Adj. Sess.), § 35(h).

History

Former § 468. Former § 468, relating to requisition to pay returning officers, was derived from V.S. 1947, § 598; P.L. § 544; G.L. § 632; P.S. § 479; V.S. § 347; R.L. § 258; G.S. 12, § 74; 1860, No. 53 , § 13; 1846, No. 25 , § 5.

§ 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 599. P.L. § 545. 1919, No. 21 , § 7. G.L. § 633. 1912, No. 32 , § 1. P.S. § 480. V.S. § 348. R.L. § 259. G.S. 12, § 75. 1860, No. 53 , § 13. 1845, No. 32 , § 8. R.S. 105, § 19. 1825, No. 1 , § 13. 1806, p. 188, § 3. R. 1797, p. 205, § 6.

Amendments

—2009 (Adj. Sess.) Deleted “the environmental court” preceding “the judicial bureau” and substituted “and” for “the probate court” thereafter, and deleted “the district court and the family court” preceding “may requisition” in the first sentence.

—2005 (Adj. Sess.). Section amended generally.

—1987 (Adj. Sess.) In two places in the first sentence and following “accounts with the” in the third sentence, substituted “commissioner of finance and management” for “commissioner of finance and information support”.

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance” in the first sentence.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor of accounts”.

§ 470. Repealed. 2005, No. 93 (Adj. Sess.), § 85, eff. March 3, 2006.

History

Former § 470. Former § 470, relating to refund of balances, was derived from V.S. 1947, § 602; P.L. 548; 1933, No. 157 , § 489; G.L. § 636; P.S. § 483; R. 1906, § 436; V.S. § 351. R.L. § 262; G.S. 12, § 77; 1846, No. 25 , § 6.

§ 471. Repealed. 1959, No. 328 (Adj. Sess.), § 35(h).

History

Former § 417. Former § 471, relating to certificate of returning officers’ fees, was derived from 1959, No. 328 (Adj. Sess.), § 8(c); V.S. 1947, § 603; P.L. § 549; G.L. § 637; P.S. § 484; V.S. § 352; R.L. § 263; G.S. 12, § 78; 1846, No. 25 , § 7.

§§ 472, 473. Repealed. 2005, No. 93 (Adj. Sess.), § 85, eff. March 3, 2006.

History

Former §§ 472, 473. Former § 472, relating to certificate of court expenses, was derived from V.S. 1947, § 604; P.L. § 550; 1933, No. 157 , § 491. G.L. § 638; P.S. § 485; V.S. § 353; R.L. § 264. G.S. 12, § 79; 1846, No. 25 , § 8; R.S. 11, § 63. 1825, No. 1 , §§ 5, 13; 1806, p. 188, § 3; R. 1797, p. 580, §§ 6, 7; 1794, p. 118, § 2; 1792, p. 60; 1791, p. 21. R. 1787, p. 24 and amended by 1959, No. 328 (Adj. Sess.), § 8(c); 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59.

Former § 473, relating to expenses of inquests and criminal proceedings before magistrates, was derived from V.S. 1947, § 577; P.L. § 524; G.L. § 611; P.S. § 446; V.S. § 332; R.L. § 244; 1878, No. 47 , § 5; G.S. 12, §§ 103, 104; 1846, No. 25 , §§ 10, 11.

§ 474. Repealed. 1991, No. 257 (Adj. Sess.), § 9.

History

Former § 474. Former § 474, relating to sheriff’s accounts, was derived from V.S. 1947, § 578; P.L. § 525; G.L. § 612; P.S. § 447; V.S. § 333; R.L. § 245; G.S. 12, § 105; 1846, No. 25 , § 12.

§ 475. Disasters on State properties.

The Commissioner of Finance and Management is hereby directed to issue his or her warrants, on certificate of the Attorney General that he or she 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. §§ 1485 , 1486, and 1487, 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.

HISTORY: 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.

History

Source.

1951, No. 8 , § 1.

References in text.

10 V.S.A. §§ 1485-1487 , referred to in subdiv. (1), were renumbered as 10 V.S.A. §§ 2195-2197 , and as renumbered, repealed by 1977, No. 253 (Adj. Sess.), § 7. State aid for forest fire suppression is now covered by 10 V.S.A. § 2643 .

Revision note—

Reference to “finance director” changed to “commissioner of finance” to conform reference to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—1987 (Adj. Sess.) At the beginning of the introductory paragraph, substituted “commissioner of finance and management” for “commissioner of finance and information support”.

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance” in the introductory clause.

—1963. Subdiv. (1): Inserted “except forest fires which are provided for in sections 1485, 1486 and 1487 of Title 10”.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor of accounts”.

§ 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.

HISTORY: 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.

History

Amendments

—1987 (Adj. Sess.) Near the beginning of the section, substituted “commissioner of finance and management” for “commissioner of finance”.

—1987. Substituted “not included in gross income of the recipients thereof for federal income tax purposes” for “exempt from federal income taxation” following “interest on bonds issued by the state is”.

Subchapter 4. Receipts

Article 1. General Provisions

§ 501. Repealed. 1997, No. 147 (Adj. Sess.), § 261b.

History

Former § 501. Former § 501, relating to the statement of revenues, was derived from V.S. 1947, § 541; P.L. § 486; 1933, No. 157 , § 426; G.L. § 546; P.S. § 378; 1906, No. 17 , § 1.

§ 502. Monies to be paid over without deduction.

  1. 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.
  2. [Repealed.]
  3. 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 500. 1947, No. 202 , § 505. P.L. § 463. 1933, No. 157 , § 404. 1923, No. 7 , § 13. G.L. § 602. 1917, No. 254 , § 589. P.S. § 436. 1902, No. 156 , § 1. G.L. § 658. 1917, No. 57 , § 6.

Editor’s note—

1997, No. 66 (Adj. Sess.), § 65 amended only subsecs. (a) and (b) of this section while purporting to amend the section in its entirety. However, subsec. (c), which was added by 1995, No. 178 (Adj. Sess.), was not intended to be deleted and is still in effect.

Amendments

—2005 (Adj. Sess.). Subsec. (a): Deleted subsec. heading: “Executive branch”.

Subsec. (b): Deleted.

—1997 (Adj. Sess.). Substituted “in accordance with the provisions of § 462 of this title” for “in pursuance of an appropriation made by law and upon warrant of the commissioner of finance and management” in subsecs. (a) and (b).

—1995 (Adj. Sess.) Subsec. (c): Added.

—1987 (Adj. Sess.) At the end of the third sentence of subsec. (a) and at the end of subsec. (b), substituted “commissioner of finance and management” for “commissioner of finance and information support”.

—1983 (Adj. Sess.) Subsec. (a): Added “and information support” following “commissioner of finance” in the third sentence.

Subsec. (b): Added “and information support” following “commissioner of finance”.

—1983. Subsec. (a): Designated and added “Executive branch” as subsec. heading.

Subsec. (b): Added.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor of accounts”.

ANNOTATIONS

Administrative proceedings.

While a personal pecuniary interest in the outcome of a proceeding may be sufficient to require disqualification of the adjudicator, the Agency of Natural Resources did not have such a financial stake in the outcome of an enforcement proceeding against a landfill as to create an impermissible bias on its part. There was no statute or regulation that would have allowed the outcome of the proceeding to affect the Agency’s budget as opposed to the State’s general fund. Indeed, there was no connection between the Agency’s potential liability in Superior Court, where it was being sued by the landfill for contribution for the cost of closure operations, and the Agency’s fiscal well-being. Secretary v. Upper Valley Regional Landfill Corp., 167 Vt. 228, 705 A.2d 1001, 1997 Vt. LEXIS 269 (1997).

Exceptions.

Section does not prohibit enforcement of attorney’s equitable lien upon fund recovered by him for the State, when power to employ attorney springs from legislation impliedly authorizing creation of the lien. Button v. Anderson, 112 Vt. 531, 28 A.2d 404, 1942 Vt. LEXIS 158 (1942).

Judicial authority.

This section was designed to prohibit an unlawful diversion of State funds and would not be interpreted to restrict a court’s judicial prerogatives in ordering an escrow of tax proceeds pending the resolution of a constitutional challenge to the tax. American Trucking Ass'n v. Conway, 152 Vt. 363, 566 A.2d 1323, 1989 Vt. LEXIS 189 (1989).

Court order appointing State Treasurer as escrow agent for taxes collected, pending resolution of constitutional challenge to the tax, did not compel Treasurer to violate his duty under subsec. (a) of this section. American Trucking Ass'n v. Conway, 152 Vt. 363, 566 A.2d 1323, 1989 Vt. LEXIS 189 (1989).

Notes to Opinions

Construction with other laws.

Handling and possession of funds by Liquor Control Board under usual safeguards of deposit in banking institutions, as distinguished from physical possession and transfer of actual specie, for purpose of dividing gross receipts as required by No. 20 of the acts of 1945 [ 7 V.S.A. § 422 note and § 424 note], is not in violation of general rules set forth in this section. 1946-48 Vt. Op. Att'y Gen. 194.

Exceptions.

It is clear that intent of this section is not to have it apply in all cases, and there are exceptions to it. 1954-56 Vt. Op. Att'y Gen. 65.

Expenditures.

In view of this section, and absent any legislation allowing it, the State’s Attorneys Association has no standing to receive a grant of State funds or to control the disposition thereof, so that it may not be granted such funds for disposition by it to the attorneys to cover the expenses of the attorneys in attending seminars, workshops, and other functions; however, that is not to say that the State’s Attorneys are not individually entitled to reimbursement or advances for expenses or such functions. 1970-72 Vt. Op. Att'y Gen. 226.

Receipt of overpayments.

Commissioner of Taxes may not deposit any checks received from any taxpayer and draw a check in return for any excess payment nor return a check after it has once been received. 1930-32 Vt. Op. Att'y Gen. 259.

§ 503. Payment of monies into Treasury.

Quarterly and oftener if the Commissioner of Finance and Management so directs, Superior Court clerks and other collectors and receivers of public money, except justices, shall pay all such money collected or held by them into the State Treasury.

HISTORY: 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.

History

Source.

V.S. 1947, § 575. P.L. § 522. 1933, No. 24 , § 9. G.L. § 603. 1917, No. 254 , § 590. 1915, No. 1 , § 52. P.S. § 437. 1902, No. 156 , § 2.

Revision note—

Reference to “finance director” changed to “commissioner of finance and management” to conform reference to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—2009 (Adj. Sess.) Substituted “superior court” for “county”.

—1987 (Adj. Sess.) Near the beginning of the section, substituted “commissioner of finance and management” for “commissioner of finance and information support”.

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance”.

—1959 (Adj. Sess.) § 21(a) substituted “Quarterly” for “On February 1, May 1, August 1, November 1”. § 8(c) substituted “finance director” for “auditor”.

§ 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.

HISTORY: Amended 1969, No. 131 , § 29, eff. April 23, 1969; 2009, No. 154 (Adj. Sess.), § 192.

History

Source.

V.S. 1947, § 600. P.L. § 546. G.L. § 634. P.S. § 481. V.S. § 349. R.L. § 260. G.S. 12, § 51. 1859, No. 6 , § 2.

Amendments

—2009 (Adj. Sess.) Substituted “superior court” for “county” in the section heading and inserted “and” preceding “fines” and substituted “superior court clerk” for “county clerk” in the first sentence.

—1969. Deleted reference to costs to the State.

§ 505. Repealed. 2009, No. 33, § 83(m)(3).

History

Former § 505. Former § 505, relating to report by county clerks regarding money collected for the State, was derived from V.S. 1947, § 601; P.L. § 547; 1933, No. 157 , § 488. G.L. § 635; P.S. § 482; V.S. § 350; R.L. § 261. G.S. 12, § 76 and amended by 1959, No. 328 (Adj. Sess.), § 8(c); 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59.

§ 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 605. P.L. § 551. G.L. § 639. P.S. § 486. V.S. § 354. R.L. § 265. G.S. 12, § 80. 1846, No. 25 , § 9. R.S. 11, § 65.

Revision note—

Reference to “finance director” changed to “commissioner of finance and management” to conform reference to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—2009 (Adj. Sess.) Substituted “superior court” for “county” in the section heading and in the text of the section.

—1987 (Adj. Sess.) Following “this chapter, the”, substituted “commissioner of finance and management” for “commissioner of finance and information support”.

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance”.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor”.

§ 507. Repealed. 2003, No. 122 (Adj. Sess.), § 294a.

History

Former § 507. Former § 507, relating to fees received by salaried officers, was derived from V.S. 1947, § 10,491; P.L. § 8989; G.L. § 7468; 1915, No. 1 , § 184; 1910, No. 247 ; 1908, No. 202 , § 1; P.S. § 6263; 1904, No. 168 , § 1; 1902, No. 153 , § 9, and amended by 1959, No. 328 (Adj. Sess.), §§ 8, 21(b); 1983, No. 195 (Adj. Sess.), § 5(b); and 1987, No. 243 (Adj. Sess.), § 59.

§ 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 such money a receipt therefor in such form as shall be prescribed by the State Treasurer.

HISTORY: 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.

History

Source.

V.S. 1947, § 10,492. 1947, No. 202 , § 10,015. P.L. § 8990. 1921, No. 248 . G.L. §§ 7428, 7469. 1917, No. 254 , § 7241. 1910, No. 25 , §§ 1, 2. 1908, No. 20 . P.S. § 6226. V.S. § 5381. R.L. § 4531. G.S. 126, § 28.

Amendments

—2009 (Adj. Sess.) Substituted “superior court” for “county” and “superior” for “district”.

—1971. Substituted “state treasurer” for “auditor of accounts”.

—1967. Deleted references to duplicate receipts.

—1965. “Municipal judges” changed to “district judges”.

§ 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.

HISTORY: Added 1959, No. 251 , eff. June 10, 1959; amended 1981, No. 248 (Adj. Sess.), § 313, eff. May 6, 1982.

History

Revision note—

Reference to “an action of contract” changed to “a civil action” pursuant to V.R.C.P. 2 and 81(c) and 1971, No. 185 (Adj. Sess.), § 236(d).

Amendments

—1981 (Adj. Sess.) Added proviso at end of first sentence to effect that when an overpayment is made, there shall be no obligation to refund sums in the amount of one dollar or less.

ANNOTATIONS

Jurisdiction.

District Court had jurisdiction of taxpayer’s claim for refund of purchase and use tax paid. Trudeau v. Conway, Comm. of Motor Vehicles, 139 Vt. 167, 423 A.2d 854, 1980 Vt. LEXIS 1506 (1980).

§ 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.

HISTORY: 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.

HISTORY: 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.

HISTORY: Added 1997, No. 147 (Adj. Sess.), § 261; amended 2009, No. 67 (Adj. Sess.), § 83, eff. Feb. 25, 2010; 2013, No. 142 (Adj. Sess.), § 60.

History

Amendments

—2013 (Adj. Sess.). Substituted “General Assembly” for “legislature” at the end of the second sentence, and added the last sentence.

—2009 (Adj. Sess.). Substituted “commissioner of finance and management” for “secretary of administration” in the first and third sentences.

Monies derived from E-911 fund. 1999, No. 152 , § 88(b), provided: “Notwithstanding the provisions of 30 V.S.A. § 7054 or 32 V.S.A. § 511 , monies deposited into the E-911 fund and carried forward to a subsequent fiscal year shall not be spent, as excess receipts or otherwise, for the construction or maintenance of any public service answering points not already in operation on January 1, 2001, except for those already approved for Rockingham and Rutland, without an express, annual appropriation of the general assembly.”

Use of federal excess receipts during 2021 legislative adjournment. 2021, No. 74 , § E.127.3 provides: “(a)(1) Notwithstanding Sec. A.106 of this act and 32 V.S.A. § 511 , if federal legislation, such as a federal infrastructure bill, is enacted that provides Vermont with additional federal resources received following the adjournment of the 2021 legislative session and prior to the convening of the 2022 legislative session, the Secretary of Administration shall seek the approval of the Joint Fiscal Committee as set forth in this section prior to obligating or expending federal monies in any specific receipt greater than $5,000,000.

“(2) Nothing in subdivision (1) of this subsection shall be construed to authorize the Secretary to obligate or expend State funds in excess of the amounts of State funds appropriated in the fiscal year 2022 budget.

“(b) The Secretary of Administration shall inform the Joint Fiscal Committee, through the Joint Fiscal Office, of any changes in the availability to the State of federal funds in a previously accepted grant following the adjournment of the 2021 legislative session and prior to the convening of the 2022 legislative session, and shall request approval from the Joint Fiscal Committee, by notifying the Joint Fiscal Office, of any proposed obligation or expenditure of a receipt of federal funds greater than $5,000,000.

“(1) The Joint Fiscal Committee may approve the proposed obligation or expenditure of newly available federal funds if the Committee determines that the proposal meets one or more of the following criteria:

“(A) The proposed use of funds is consistent with the intent of legislation enacted during the 2021 legislative session.

“(B) The proposed use of funds is necessary to meet needs associated with the COVID-19 pandemic.

“(C) The proposed use of funds requires prompt action that should not be delayed to allow for consideration by the General Assembly during the 2022 legislative session.

“(2) If the Joint Fiscal Committee disapproves the proposed obligation or expenditure of newly available federal funds in whole or in part, the Committee shall inform the Secretary of the disapproval and the basis for the disapproval within 30 calendar days following receipt by the Joint Fiscal Office of the proposed obligation or expenditure. The Secretary may revise and resubmit a disapproved proposal for further consideration.

“(3) If the Joint Fiscal Committee does not take action on the proposed obligation or expenditure of newly available federal funds within 30 calendar days following receipt by the Joint Fiscal Office of the Secretary’s proposal or resubmitted proposal, the proposed obligation or expenditure shall be deemed approved.

“(c) The Secretary of Administration may obligate and expend federal receipts of up to $5,000,000 that become available as the result of federal legislation enacted following the adjournment of the 2021 legislative session and prior to the convening of the 2022 legislative session pursuant to 32 V.S.A. § 511 without seeking approval from the Joint Fiscal Committee.

“(d) The authority of the Secretary of Administration and the Joint Fiscal Committee as set forth in this section shall remain in effect until February 1, 2022.”

Article 2. Justices

§§ 521-525. Repealed. 1987, No. 243 (Adj. Sess.), § 61, eff. June 13, 1988.

History

Former §§ 521-525. Former § 521, relating to the payment of fines to county clerks, was derived from V.S. 1947 § 583, P.L. § 529, G.L. § 616; 1917 No. 254, § 602; 1910 No. 26, § 1, P.S. § 449; 1906 No. 208, §§ 4, 5, V.S. § 335, R.L. § 250; 1880 No. 119, § 1; G.S. 12, § 51 and amended by 1959, No. 328 (Adj. Sess.), § 8; 1969, No. 131 , § 19; 1983, No. 195 (Adj. Sess.), § 5(b).

Former § 522, relating to accounts and returns, was derived from V.S. 1947 § 584, P.L. § 530; 1927 No. 13, § 1; 1941 No. 24, § 1, G.L. § 617, P.S. § 450; R. 1906 § 408; 1906, No. 208 , § 4, V.S. § 337, R.L. § 252; 1880 No. 119, § 3 and amended by 1959, No. 328 (Adj. Sess.), § 21(c); 1969, No. 131 , § 20; 1971, No. 199 (Adj. Sess.), § 17; 1981, No. 223 (Adj. Sess.), § 23.

Former § 523, relating to contents of returns of receipts and disbursements, was derived from V.S. 1947 § 585, P.L. § 531, G.L. § 618, P.S. § 451; 1906 No. 208, § 5, V.S. § 338, R.L. § 253; 1880 No. 119, § 4 and amended by 1969, No. 131 , § 30.

Former § 524, relating to the county clerk’s duties, was derived from V.S. 1947 § 587, P.L. § 533; 1927 No. 13, § 3, G.L. § 621, P.S. § 454; 1906 No. 208, § 5, V.S. § 341; 1888 No. 60, § 3.

Former § 525, relating to forms for the accounts, returns and certificates required, was derived from V.S. 1947 § 590, P.L. § 536, G.L. § 624, P.S. § 457; 1906 No. 208 § 5, V.S. § 344, R.L. § 256; 1880 No. 119 § 7 and amended by 1959, No. 328 (Adj. Sess.), § 8; 1983, No. 195 (Adj. Sess.), § 5(b).

§§ 526-528. Repealed. 2009, No. 154 (Adj. Sess.), § 238.

History

Former §§ 526-528. Former § 526, relating to fees disallowed when justice has not filed return with county clerk, was derived from V.S. 1947, § 586; P.L. § 532; 1927, No. 13 , § 2; G.L. § 620; P.S. § 453; 1906, No. 208 , § 1; V.S. § 340. 1888, No. 60 , § 2 and amended by 1959, No. 328 (Adj. Sess.), § 21(d).

Former § 527, relating to the bill of costs disallowed when justice has not filed returns with county clerk, was derived from V.S. 1947, § 588; P.L. § 534; G.L. § 622; P.S. § 455; 1906, No. 208 , § 5; V.S. § 342; 1888, No. 60 , § 4; R.L. § 254; 1880, No. 119 , § 5.

Former § 528, relating to the penalty when justice fails to make returns, was derived from V.S. 1947, § 589; P.L. § 535; G.L. § 623; P.S. § 456; 1906, No. 208 , § 5; V.S. § 343; R.L. § 255. 1880, No. 119 , § 6 and amended by 1973, No. 193 (Adj. Sess.), § 3.

Article 3. District Judges

§ 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.

HISTORY: Amended 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2009, No. 154 (Adj. Sess.), § 195.

History

Source.

V.S. 1947, § 591. P.L. § 537. G.L. § 625. 1910, No. 26 , §§ 1, 2. P.S. § 458. 1906, No. 208 , § 3.

Amendments

—2009 (Adj. Sess.) Deleted “of district courts” following “collected by judges”.

—1965. Substituted “district” for “municipal” courts.

Notes to Opinions

Proper treasury.

All fines imposed and collected by municipal court against person for offense or breach of penal law, other than for violation of city, village, or town ordinance, and costs, including the costs provided by P.L. § 8996 (former § 1475 of this title) for benefit of the State, belong to and should be paid into the State Treasury, and when penalty is wholly or partly by fine payable to treasurer of town, village, or city, if respondent is committed in default of payment, fine and costs of prosecution and commitment shall be payable to the State, and costs shall be paid from State Treasury as in other cases where costs are paid by the State, as provided by 13 V.S.A. § 7255 . 1934-36 Vt. Op. Att'y Gen. 70.

§ 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.

HISTORY: Amended 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2009, No. 154 (Adj. Sess.), § 238.

History

Source.

V.S. 1947, § 592. P.L. § 538. 1933, No. 157 , § 479. G.L. § 626. 1915, No. 1 , § 53. P.S. § 459. 1906, No. 208 , § 4.

Amendments

—2009 (Adj. Sess.) Substituted “criminal division of the superior court” for “district court”.

—1965. Substituted “district” for “municipal” court.

CROSS REFERENCES

Change in fiscal quarters, see § 3 of this title.

§ 543. Repealed. 2009, No. 33, § 83(m)(4).

History

Former § 543. Former § 543, relating to report from District Courts on cost bills and returns, was derived from V.S. 1947, § 593; P.L. § 539; G.L. § 627; 1915, No. 1 , § 54; P.S. § 460; 1906, No. 208 , § 5 and amended by 1959, No. 328 (Adj. Sess.), §§ 8, 21(e); 1965, No. 194 , § 10, eff. July 1, 1965; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59.

2009 (Adj. Sess.) amendment. 2009, No. 154 (Adj. Sess.), § 238(b)(16), provided for amendment to this section, however this section was previously repealed by 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.

HISTORY: Amended 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2009, No. 154 (Adj. Sess.), § 238.

History

Source.

V.S. 1947, § 594. P.L. § 540. G.L. § 628. P.S. § 461. 1906, No. 208 , § 6.

Amendments

—2009 (Adj. Sess.) Substituted “criminal division of the superior court” for “district court”.

—1965. Substituted “district” for “municipal” court.

CROSS REFERENCES

Juror fees, see chapter 17, subchapter 4 of this title.

Witness fees, see chapter 17, subchapter 5 of this title.

Article 4. Judges of Probate

§ 561. Repealed. 2009, No. 33, § 83(m)(5).

History

Former § 561. Former § 561, relating to report by probate judges on all fees paid to their offices due the State, was derived from V.S. 1947, § 10,547. P.L. § 9042. G.L. § 7424. 1915, No. 1 , § 179. 1908, No. 199 , § 1. P.S. § 6222. V.S. § 5377. R.L. § 4526. 1866, No. 21 , § 3. G.S. 126, § 22 and amended by 1959, No. 328 (Adj. Sess.), §§ 8, 21(f); 1977, No. 235 (Adj. Sess.), § 8; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 59.

Article 5. Miscellaneous

§ 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.

HISTORY: Amended 2009, No. 154 (Adj. Sess.), § 196.

History

Source.

V.S. 1947, § 597. P.L. § 543. G.L. § 631. P.S. § 462. 1906, No. 208 , § 4. V.S. § 336. R.L. § 251. 1880, No. 119 , § 2.

Amendments

—2009 (Adj. Sess.) Section amended generally.

§ 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.

HISTORY: Added 1979, No. 205 (Adj. Sess.), § 151, eff. May 9, 1980; amended 1997, No. 155 (Adj. Sess.), § 23.

History

Amendments

—1997 (Adj. Sess.). In the first sentence, substituted “developmental and mental health services” for “mental health”; in the second sentence, substituted “reasonably related to costs” for provisions for computing rates; in the third sentence, substituted “may” for “shall” and “special fund” for “revolving fund”; and deleted the last sentence, requiring reversion to the General Fund of balances in the revolving fund at the end of a fiscal year.

§ 583. Credit card payments.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. [Repealed.]

HISTORY: 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.

History

Revision note

—2007. Concurrent with the recodification of the former subsec. (f) as subsec. (e), the previously existing introductory paragraph and first subdivision of the subsection were merged due to the expiration of the former second and third subdivisions.

Amendments

—2011 (Adj. Sess.). Subsec. (e): Repealed.

—2007. Deleted former subsec. (b) and redesignated former subsecs. (c) through (f) as present subsecs. (b) through (e); and in present subsec. (b), substituted “agencies or departments, the use of” for “agencies, department, or the judiciary the use of” in the first sentence, and added the second sentence; and in present subsec. (d), inserted “except that which is adopted and recommended by the court administrator” in the second sentence.

—2003. Designated former undesignated paragraph as present subsec. (e) and rewrote subsection, added subsecs. (a)-(d) and (f).

§ 584. Vermont Clean Water Affinity Card Program.

  1. 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.
  2. 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.
  3. 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.
  4. The State shall not assume any liability for lost or stolen credit cards nor any other legal debt owed to the financial institutions.
  5. The State Treasurer is authorized to adopt such rules as may be necessary to implement the Vermont Clean Water Affinity Card Program.

HISTORY: 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.

History

Amendments

—2019. Section heading: Substituted “Clean Water” for “State-sponsored”.

Subsec. (a): Substituted “water quality improvement in” for “the residents of” and substituted “interests” for “interest” in the first sentence, and deleted the second sentence.

Subsec. (b): Amended generally.

Subsec. (c): Amended generally.

Subsec. (e): Substituted “Clean Water” for “State-sponsored”.

—2011 (Adj. Sess.). Subsec. (c): Deleted the former last sentence.

Subchapter 5. Special Funds

§ 585. Definitions.

  1. 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.
  2. 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.

HISTORY: 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.

History

Amendments

—2005 (Adj. Sess.). Subsec. (c): Added.

—1997. Section amended generally.

§ 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 .

HISTORY: 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.

History

Editor’s note—

During the 1997 Session, this section was amended three times by Act Nos. 59, 60, and 64. The amendments by Act Nos. 60 and 64 did not take into consideration the changes previously made by Act No. 59; however, 1997, No. 155 (Adj. Sess.), § 3 directed the statutory revision commission to “revise the provisions of 32 V.S.A. § 586 as amended by Sec. 80 of No. 59 of the Acts of 1997 (special funds) to incorporate the provisions of Sec. 20 of No. 60 of the Acts of 1997 and Sec. 19 of No. 64 of the Acts of 1997.”

Amendments

—2013. Deleted “; the Vermont campaign fund created by section 2856 of Title 17”.

—2001. Act No. 61, § 54, inserted “the lands and facilities trust fund created by section 2807 of Title 3” following “Title 17”.

Act No. 63, § 230, added “or the Vermont housing and conservation trust fund created by section 312 of Title 10” following “Title 16”.

—1999. Inserted “the tobacco litigation settlement fund” after “fish and wildlife fund”.

—1997. Act No. 59 amended section generally.

Act No. 64 added “the Vermont campaign fund created by section 2856 of Title 17”.

Act No. 60 added “the education fund created by section 4025 of Title 16.”

—1993. Subdiv. (b)(3): Substituted “reserves” for “trust fund” and “sections 308 and 308a” for “section 308”.

CROSS REFERENCES

Department of Fish and Wildlife funds, see 10 V.S.A. chapter 103.

Transportation Fund, see 19 V.S.A. § 11 .

Municipal and Regional Planning Fund, see 24 V.S.A. § 4306 .

§ 587. Special funds; creation and termination.

  1. Creation of special funds.   The creation of all special funds shall be in accordance with the provisions of this subchapter.
  2. 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.

HISTORY: Added 1991, No. 226 (Adj. Sess.), § 2, eff. May 28, 1992; amended 1997, No. 59 , § 81, eff. June 30, 1997.

History

Amendments

—1997. Section amended generally.

§ 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.
    1. 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.
    2. 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.
    3. 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.
    1. 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.
    2. 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.
    1. 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.
    2. 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.

HISTORY: 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.

History

Revision note—

In the first sentence of subdiv. (4)(A), substituted “or” for “of” following “assembly” to correct a typographical error.

Amendments

—2009 (Adj. Sess.). Subdiv. (4)(A): Substituted “commissioner of finance and management” for “secretary of administration” preceding “with” in the first sentence.

—2007. Subdiv. (6)(A): Inserted “the balance at the end of the prior fiscal year” preceding “shall be” and substituted “to the joint fiscal committee on or before December 1 of each year” for “upon in the annual financial report of the department of finance and management required by section 182(8) of this title”.

—2005. Subdiv. (4)(A): Added “except for properly encumbered payments and refunds of prior year expenditures” following “granted” in the last sentence.

—1997. Section amended generally.

CROSS REFERENCES

State Infrastructure Bank Program, see 10 V.S.A. chapter 12, subchapter 11.

Emergency Board, see §§ 131-135 of this title.

§ 589. Repealed. 1997, No. 59, § 83(1), eff. June 30, 1997.

History

Former § 589. Former § 589, relating to the designation of special program funds, was derived from 1991, No. 226 (Adj. Sess.), § 2; and amended by 1995, No. 190 (Adj. Sess.), § 1(a).

§ 590. Repealed. 1997, No. 59, § 83(2), eff. June 30, 1997.

History

Former § 590. Former § 590, relating to the cessation of existing special funds, was derived from 1991, No. 226 (Adj. Sess.), § 2.

Subchapter 6. Executive and Judicial Branch Fees

History

Amendments

—2007 (Adj. Sess.). 2007, No. 153 (Adj. Sess.), § 22, inserted “and judicial” preceding “branch fees” in the subchapter heading.

§ 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.

HISTORY: Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 2007, No. 153 (Adj. Sess.), § 22.

History

Amendments

—2007 (Adj. Sess.). Inserted “and judicial” preceding “branch fees”.

§ 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”:
    1. 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.
    2. The following charges are exempt from the provisions of this subchapter:
      1. a charge established under the jurisdiction of the Public Utility Commission as provided by 30 V.S.A. §§ 20 , 21, and 218;
      2. a charge established by the Board of Liquor and Lottery as provided by Title 7;
      3. 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;
      4. monies paid into an enterprise or internal service fund;
      5. 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;
      6. monies from interest and premium payments, rent or lease payments, proceeds of fair market or negotiated sales, or sales of commercially available items;
      7. 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;
      8. a charge established by the Department of Financial Regulation as authorized by law; and
      9. any other charge exempt by law.

HISTORY: 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.

History

Revision note

—2017. In subdiv. (2)(B)(i), substituted “Public Utility Commission” for “Public Service Board” in accordance with 2017, No. 53 , § 12.

Amendments

—2019. Subdiv. (2)(B)(ii): Deleted “Liquor Control” preceding “Board”, and added “of Liquor and Lottery” following “Board”.

—2015 (Adj. Sess.). Subdiv. (2)(B): Added new subdiv. (viii) and redesignated former subdiv. (viii) as subdiv. (ix).

—2013. Substituted “As used in” for “For purposes of” and deleted “except as provided in subsection 605(f) of this subchapter” at the end of subdiv. (2)(B).

—2007 (Adj. Sess.). Subdiv. (2)(A): Act No. 153 inserted “or the judiciary” following “agency”.

Subdiv. (2)(B): Act No. 174 added “except as provided in subsection 605(f) of this subchapter” at the end.

—2005 (Adj. Sess.). Added subdiv. (2)(B)(vii) and redesignated former subdiv. (2)(B)(vii) as present subdiv. (2)(B)(viii).

—1997 (Adj. Sess.). Subdiv. (vi): Added “or sales of commercially available items” at the end.

—1997. Subdiv. (2)(B): Rewrote the introductory paragraph and deleted former subdiv. (iv) and redesignated former subdivs. (v)-(viii) as present subdivs. (iv)-(vii).

§ 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:
    1. transcripts;
    2. reproductions not covered by 1 V.S.A. § 316(d) ;
    3. conferences;
    4. forms for commercial use;
    5. publications of the department;
    6. costs of distribution of department materials;
    7. advertising for department services or products;
    8. training;
    9. charges to attend one-time department events; and
    10. 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.

HISTORY: 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.

History

Revision note

—2021. In introductory paragraph, substituted “May 22, 1996” for “the effective date of this subchapter”.

Amendments

—2007 (Adj. Sess.). Subdiv. (3): Amended generally.

Subdiv. (4): Added the subdivision designation; and substituted “under subdivision (3) of this section” for “under this subdivision” in the first sentence.

—1997 (Adj. Sess.). Subdiv. (3): Substituted “may be set” for “upon request” and deleted “shall be set and adjusted by the joint fiscal committee” after “service or product” in the first sentence.

—1997. Subdiv. (2): Inserted “whether established by statute or rule” and substituted “action of the joint fiscal committee” for “rule” and “adjustment” for “rule” in the first sentence; substituted “narrowly” for “broadly” and “but may include reasonable and directly related costs” for “to include” in the second sentence; and added the third and fourth sentences.

Subdiv. (3): Added.

§ 604. Section 604 repealed effective July 1, 2022. Electric vehicle supply equipment fees.

Notwithstanding any other provision of this subchapter, any agency or department that owns or controls electric vehicle supply equipment, as defined in 30 V.S.A. § 201 , may establish, set, and adjust fees for the use of that electric vehicle supply equipment. The agency or department may establish fees for electric vehicle charging at less than its costs, to cover its costs, or equal to the retail rate charged for the use of electric vehicle supply equipment available to the public. Fees collected under this section shall be deposited in the same fund or account within a fund from which the electric operating expense for the electric vehicle supply equipment originated.

HISTORY: Added 2019, No. 59 , § 37; repealed on July 1, 2022 by 2019, No. 59 , § 38.

History

Former § 604. Former § 604, relating to management of fee revenues, was derived from 1995, No. 186 (Adj. Sess.), § 31 and repealed by 1997, No. 59 , § 3.

§ 605. Consolidated Executive Branch annual fee report and request.

  1. The Governor shall, no 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, except that the first fee report shall be submitted by October 1, 1996 to the House Committee on Ways and Means, the Senate Committee on Finance, and the House and Senate Committees on Government Operations. The first fee request shall be submitted during the 1997 session as provided herein. 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.
  2. 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.
  3. 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.
  4. 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:
      1. 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;
      2. the inflationary pressures that have arisen since the fee was last set;
      3. the effect on budgetary adequacy if the fee is not increased;
      4. the existence of comparable fees in other jurisdictions;
      5. policies that might affect the acceptance or the viability of the fee amount; and
      6. other considerations.
    3. Designate, or redesignate, the fund into which revenue from a fee is to be deposited.
  5. 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.
  6. [Repealed.]

HISTORY: 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.

History

Amendments

—2013 (Adj. Sess.). Subsec. (a): Act No. 142 Deleted “above” at the end of the second sentence, and added the fourth sentence.

Subdiv. (b)(1): Act No. 191 Substituted “‘commerce and community development”’ for “‘development and community affairs”’ following “‘general education,”’.

—2013. Subsec. (f): Repealed.

—2009 (Adj. Sess.) Subdiv. (b)(1): Inserted “labor” preceding “general education”, and substituted “submitted by the third Tuesday” for “submitted by October 1, 1996 and every three years thereafter on the third Tuesday”, and “beginning in 2011 and every three years thereafter” for “beginning with 2000”.

Subdiv. (b)(2): Substituted “submitted by the third” for “submitted no later than the third” and “2012” for “1998”.

Subdiv. (b)(3): Substituted “submitted by the third” for “submitted no later than the third” and “2013” for “1999”.

—2007 (Adj. Sess.). Section heading: Act No. 153 inserted “executive branch” following “Consolidated”.

Subsec. (f): Added by Act No. 174.

—2005 (Adj. Sess.). Subdiv. (d)(2): Amended generally.

—1997. Subdiv. (c)(2): Substituted “the joint fiscal committee” for “rule”.

Subsec. (e): Second sentence amended generally.

Executive branch fee report summaries. 2001, No. 65 , § 32d, provided, “The Joint Fiscal Office and Legislative Council shall, with the assistance of the Department of Finance and Management, develop a summary form, which shall be submitted for each fee proposal included in the executive branch fee report under 32 V.S.A. § 605 . Each summary form shall include the information required under 32 V.S.A. § 605 , and shall be made available in electronic form and other form as requested by the Joint Fiscal Office and Legislative Council.”

§ 605a. Consolidated Judicial Branch fee report and request.

  1. Subsection (a) effective until July 1, 2022; see also subsection (a) effective July 1, 2022 set out below.

    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 no 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.

    (a)

    Subsection (a) effective July 1, 2022; see also subsection (a) effective until July 1, 2022 set out above.

    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.

  2. 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.
  3. 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:
      1. 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;
      2. the inflationary pressures that have arisen since the fee was last set;
      3. the effect on budgetary adequacy if the fee is not increased;
      4. the existence of comparable fees in other jurisdictions;
      5. policies that might affect the acceptance or the viability of the fee amount; and
      6. other considerations.
    3. Designate, or redesignate, the fund into which revenue from a fee is to be deposited.
  4. 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.”
  5. Subsection (e) effective July 1, 2022.

    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.

HISTORY: Added 2007, No. 153 (Adj. Sess.), § 22; amended 2013, No. 142 (Adj. Sess.), § 62; 2021, No. 23 , § 1, eff. July 1, 2022.

History

Amendments

—2021. Subsec. (a): Substituted “not” for “no” preceding “later” in the first sentence.

Subsec. (e): Added.

—2013 (Adj. Sess.). Subsec. (a): Added the third sentence.

§ 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.

HISTORY: Added 1995, No. 186 (Adj. Sess.), § 31, eff. May 22, 1996; amended 2007, No. 153 (Adj. Sess.), § 22; 2017, No. 155 (Adj. Sess.), § 2.

History

Amendments

—2017 (Adj. Sess.). Introductory language: Substituted “605, 605a, and 611 of this title” for “605 and 605a of this title”.

—2007 (Adj. Sess.). In the first sentence of the introductory paragraph, substituted “reports and requests are” for “report and request is” following “fee”, “sections 605 and 605a of this title, they shall” for “section 605 of this title, it shall” preceding “immediately be forwarded to”, and “substituted “reports and requests” for “report and request” following “a fee contained in the”.

Subchapter 6A. Town Fee Report and Request

§ 611. Consolidated town fee report and request.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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:
      1. 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;
      2. the inflationary pressures that have arisen since the fee was last set;
      3. the effect on budgetary adequacy if the fee is not increased;
      4. the existence of comparable fees in other jurisdictions;
      5. policies that might affect the acceptance or the viability of the fee amount; and
      6. other considerations.
    3. Designate, or redesignate, the fund into which revenue from a fee is to be deposited.

HISTORY: Added 2017, No. 155 (Adj. Sess.), § 3; amended 2019, No. 38 , § 1.

History

Amendments

—2019. Added new subsec. (d), and redesignated former subsec. (d) as subsec. (e). su

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.

HISTORY: 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:
    1. any offense under 13 V.S.A. chapter 21;
    2. false personation as defined in 13 V.S.A. § 2001 ;
    3. false pretenses or tokens as defined in 13 V.S.A. § 2002 ;
    4. grand larceny as defined in 13 V.S.A. § 2501 ;
    5. person holding property in official capacity or belonging to the State or a municipality as defined in 13 V.S.A. § 2537 ;
    6. false claim as defined in 13 V.S.A. § 3016 ;
    7. 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:
      1. a larceny;
      2. an embezzlement;
      3. the fraudulent conversion of money, property, or other valuable things for personal or other use; or
      4. an intent to defraud; or
    8. 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.

HISTORY: Added 2013, No. 2 , § 1.

§ 623. Forfeiture of public employee retirement benefits.

  1. 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.
  2. 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.
  3. 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.
  4. A copy of the complaint shall be served on the member and any known spouse, dependent, or designated beneficiary of the member.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.

HISTORY: Added 2013, No. 2 , § 1.

§ 624. Venue, procedure, and appeals.

  1. 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.
  2. 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.
  3. 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.

HISTORY: Added 2013, No. 2 , § 1.

§ 625. Return of contributions; exemptions; qualified domestic relations orders.

  1. 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.
  2. 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.
  3. 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.
  4. 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.

HISTORY: Added 2013, No. 2 , § 1.

§ 626. Application; collective bargaining agreements.

  1. This subchapter shall not apply to retirement benefits that accrued prior to July 1, 2013 or to crimes committed before July 1, 2013.
  2. 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.

HISTORY: Added 2013, No. 2 , § 1.

History

Revision note

—2021. In subsecs. (a) and (b), substituted “July 1, 2013” for “the effective date of this subchapter”.

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:
    1. is presented to an officer, employee, or agent of the State; or
    2. 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:
      1. provides or has provided any portion of the money or property that is requested or demanded; or
      2. 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”:
    1. means that a person, with respect to information:
      1. has actual knowledge of the information;
      2. acts in deliberate ignorance of the truth or falsity of the information; or
      3. acts in reckless disregard of the truth or falsity of the information; and
    2. 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:
    1. 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
    2. 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 631. Prohibition; penalties.

  1. 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. § 1395n n(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. § 1395n n;
    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 therein 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:
      1. a date that is 120 days after the date on which the false claim or receipt of overpayment was identified; or
      2. the date any corresponding cost report is due, if applicable; or
    12. conspire to commit a violation of this subsection.
  2. 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.
  3. 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.
  4. 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 632. Civil actions for false claims.

  1. 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.
    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. (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:
      1. the complaint; and
      2. 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:
      1. proceed with the action, in which case the action shall be conducted by the Attorney General; or
      2. 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 633. Rights of the parties to qui tam actions.

  1. 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.
    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. (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:
      1. limiting the number of witnesses the relator may call;
      2. limiting the length of the testimony of such witnesses;
      3. limiting the relator’s cross-examination of witnesses; or
      4. 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.
  2. 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, it 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.
  3. 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 634. Alternate remedies available to determine civil penalty.

Notwithstanding sections 632 and 633 of this chapter, the Attorney General may elect to pursue its 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 635. Payments to relators; limitations.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 636. Certain actions barred.

  1. 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.
  2. 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.
  3. 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 637. Awards of costs and attorney’s fees against relators; liability.

  1. 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.
  2. 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 638. Relief from retaliatory actions.

  1. 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.
  2. 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.
  3. 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.
  4. 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 639. Limitation of actions; final judgments in criminal proceedings.

  1. 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.
  2. 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.
  3. 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.
  4. 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015; amended 2017, No. 113 (Adj. Sess.), § 185.

History

Revision note

—2021. In subsec. (b), substituted “subchapter” for “act” following “under this”.

Amendments

—2017 (Adj. Sess.). Subsec. (a): Added “after the last to occur of” at the end.

Subdiv. (a)(2): Deleted “; whichever occurs last” at the end.

Effective date of subsec. (b). 2015, No. 25 , § 2 provides: “This act [which enacted this section] shall take effect on passage, except for 32 V.S.A. § 639(b) which shall take effect on March 15, 2016.”

§ 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 641. Remedies under other laws; legislative construction.

  1. 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.
  2. It is the intent of the Legislature 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015.

§ 642. Civil investigative demands.

  1. 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:
      1. to produce such documentary material for inspection and copying;
      2. to answer in writing written interrogatories with respect to such documentary material or information;
      3. to give oral testimony concerning such documentary material or information; or
      4. 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.
      1. 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.
      2. If such demand is for the production of documentary material, the demand shall:
        1. describe each class of documentary material to be produced with such definiteness and certainty as to permit such material to be fairly identified;
        2. 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
        3. identify the false claims law investigator to whom such material shall be made available.
      3. If such demand is for answers to written interrogatories, the demand shall:
        1. set forth with specificity the written interrogatories to be answered;
        2. prescribe dates at which time answers to written interrogatories shall be submitted; and
        3. identify the false claims law investigator to whom such answers shall be submitted.
      4. If such demand is for the giving of oral testimony, the demand shall:
        1. prescribe a date, time, and place at which oral testimony shall be commenced;
        2. identify a false claims law investigator who shall conduct the examination;
        3. specify that such attendance and testimony are necessary to the conduct of the investigation;
        4. notify the person receiving the demand of the right to be accompanied by an attorney and any other representative; and
        5. 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.
      5. 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.
      6. 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.
      7. 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.
  2. 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:
      1. 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
      2. 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.
  3. 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.
  4. 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:
      1. 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;
      2. delivering an executed copy of such demand or petition to the principal office or place of business of the partnership, corporation, association, or entity;
      3. 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
      4. 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:
      1. delivering an executed copy of such demand or petition to the person;
      2. 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
      3. by any other method provided by 12 V.S.A. chapter 25 or the Vermont Rules of Civil Procedure.
  5. 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.
  6. 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:
      1. in the case of a natural person, the person to whom the demand is directed; or
      2. 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.
  7. 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:
      1. in the case of a natural person, the person to whom the demand is directed; or
      2. 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.
  8. 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 therefor.
    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 therefor, 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.
      1. 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.
      2. 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.
      1. 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.

      1. 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:
        1. 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
        2. within such longer period as may be prescribed in writing by any false claims law investigator identified in the demand.
      2. 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:

        1. 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
        2. 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

      3. 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 regulations 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.

HISTORY: Added 2015, No. 25 , § 1, eff. May 18, 2015; amended 2017, No. 11 , § 57; 2019, No. 14 , § 74, eff. April 30, 2019.

History

Amendments

—2019. Subdiv. (a)(2): Added subdiv. heading.

—2017. Subdiv. (a)(3)(F): Inserted “business” following “less than seven”.

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.

History

Source.

V.S. 1947, § 616. P.L. § 563. 1933, No. 157 , § 504. 1923, No. 7 , § 26.

§ 701a. Capital construction bill.

  1. 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 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.
  2. 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.
  3. The spending authority authorized by a capital construction act shall carry forward until expended, unless otherwise provided. 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.
  4. On or before January 15, 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 shall submit to the House Committee on Corrections and Institutions and the Senate Committee on Institutions a report on the current fund balances of each authorized project with unexpended funds.
  5. 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.

HISTORY: 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.

History

Amendments

—2017 (Adj. Sess.). Subsec. (e): Added.

—2013 (Adj. Sess.). Subsec. (d): Substituted “On or before January 15” for “On or before October 15” at the beginning, “House Committee on Corrections and Institutions and the Senate Committee on Institutions” for “Department of Buildings and General Services” following “shall submit to the”, “current fund balances” for “status” following “a report on the”, and deleted the former second and third sentences.

—2013. Substituted “ten-year” for “six year” preceding “capital” in subsec. (a); substituted “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” for “Any unencumbered funds remaining after a two-year period” in the second sentence of subsec. (c); and in subsec. (d), substituted “has been” for “is,” added “enacted in a legislative session that was two or more years prior to the current legislative session,” and added “authorized” and substituted “with unexpected funds” for “authorized” in the first sentence.

—2011 (Adj. Sess.) Section amended generally.

—2007 (Adj. Sess.). Subsec. (c): Added.

Effect of section on agreements with holders of bonds or notes issued on or before July 1, 1990. 1989, No. 258 (Adj. Sess.), § 5, provided: “This act [which added this section and sections 309, 310, 1000 and 1001 of this title] shall not be construed or interpreted to limit or alter the rights of the state or any instrumentality to fulfil the terms of any agreements made with the holders of any bonds, notes or other obligation of the state or such instrumentality issued and outstanding on or prior to the effective date of the act [July 1, 1990] or in any way to impair the rights and remedies of such holders.”

§ 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.

History

Source.

V.S. 1947, § 617. 1937, No. 8 , § 1.

Notes to Opinions

Contingent fund.

Where State was undercharged for electric service by lighting company, it was liable for adjusted amount since it had not been damaged by change in position; but amount could not be paid from contingent fund and it would require a special appropriation. 1958-60 Vt. Op. Att'y Gen. 84.

§ 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.

HISTORY: Amended 1983, No. 253 (Adj. Sess.), § 249; 1997, No. 66 (Adj. Sess.), § 66, eff. Feb. 20, 1998; 2007, No. 192 (Adj. Sess.), § 6.011.

History

Source.

V.S. 1947, § 536. P.L. § 481. G.L. § 540. P.S. § 372. 1906, No. 18 , § 1. V.S. § 266. R.L. § 184. 1880, No. 77 .

Amendments

—2007 (Adj. Sess.). Section amended generally.

—1997 (Adj. Sess.). Deleted the second sentence, which read, “Unexpended general fund appropriations which are authorized to be carried forward into subsequent years shall be reverted to the state treasury at the close of the third succeeding fiscal year unless continued by action of the general assembly”.

—1983 (Adj. Sess.) Added the second sentence.

Notes to Opinions

Continuing appropriations.

Appropriations, payment of which is to be continued beyond the next biennial session, are not objectionable to our Constitution. 1930-32 Vt. Op. Att'y Gen. 208.

§ 704. Interim budget and appropriation adjustments.

  1. The General Assembly recognizes that acts of appropriations and their sources of funding reflect the priorities for expenditures of public funds enacted by the Legislature 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 Legislature 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.
    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 approval by 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. (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 approval by 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.
    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.
  2. 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.
  3. 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.
    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. (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.
  4. 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.
  5. 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.
  6. 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.
  7. [Repealed.]
  8. 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.
  9. 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.

HISTORY: 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.

History

Former § 704. Former § 704 relating to allotment of appropriations was derived from V.S. 1947, § 502; 1939, No. 9 , § 3; and previously repealed by 1959, No. 328 (Adj. Sess.), § 35(i). The subject matter is covered by § 705 of this title.

Amendments

—2015 (Adj. Sess.). Subsec. (i): Repealed.

—2015. Section amended generally.

—2013 (Adj. Sess.). Subdiv. (d)(2): Substituted “Legislative Branch” for “Legislative Branches” twice.

Subsec. (i): Added.

—2009. Section amended generally.

—1997. Subdiv. (e)(3): Amended generally.

Rescission authority limitation. 2019, No. 120 (Adj. Sess.), § A.6 provides: “(a) The provisions of 32 V.S.A. § 704 shall not apply between July 1, 2020 and September 30, 2020.”

ANNOTATIONS

Cited.

Cited in Hunter v. State, 2004 VT 108, 177 Vt. 339, 865 A.2d 381, 2004 Vt. LEXIS 313 (2004).

§ 704a. Execution of the laws relating to appropriations.

  1. 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 Legislature in enacting such laws, including the provisions of this chapter, the annual appropriations act, and any budget adjustment act.
  2. 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.

HISTORY: Added 1995, No. 178 (Adj. Sess.), § 281; amended 1999, No. 1 , § 99, eff. March 31, 1999.

History

Amendments

—1999. Subsec. (b): Deleted the second sentence.

§ 705. Allotment of appropriations.

  1. 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.
  2. 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.
  3. 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.

HISTORY: 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.

History

Revision note—

Reference to “commissioner of administration” changed to “secretary of administration” in subsecs. (a) and (c); “budget director” changed to “commissioner of budget and management” in subsec. (a); and “department of administration” changed to “agency of administration” in subsec. (a) to conform references to new titles and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—2013 (Adj. Sess.). Subsec. (c): Added the fourth sentence.

—2011. Subsec. (c): Substituted “If allotments have been made,” for “The” at the beginning of the third sentence.

—1995 (Adj. Sess.) Subsec. (c): Amended generally.

—1987 (Adj. Sess.) Subsec. (a): Substituted “commissioner of finance and management” for “commissioner of budget and management” in the introductory paragraph.

§ 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 $50,000.00 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 subdivisions (1) and (4) 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 $100.00.
  4. [Repealed.]

HISTORY: 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.

History

Revision note—

In subdivs. (1) and (2), the words, “enacted before or after the effective date of this law (act)”, following the word “government”, were deleted as being of temporary effect.

Amendments

—2011 (Adj. Sess.). Subdiv. (4): Repealed.

—2011. Subdiv. (1): Substituted “commissioner of finance and management” for “secretary of administration” near the beginning of the subdivision.

—2007. Subdiv. (1): Amended generally.

—2005. Section amended generally.

—2003 (Adj. Sess.). Subsec. (c): Substituted “$100.00” for “$10.00”.

—1999 (Adj. Sess.). Subsec. (b): Substituted “Except as specified in subsection (a) of this section the” for “the” and deleted “in excess of $25,000.00” following “appropriations”.

—1999. Subdiv. (a)(1): Substituted “$50,000” for “$25,000”.

—1983 (Adj. Sess.) Subsec. (c): Substituted “commissioner of finance and information support” for “commissioner of finance”.

—1979. Subdiv. (a)(1), and subsec. (b): Substituted “$25,000.00” for “$10,000.00”.

—1977 (Adj. Sess.) Subsec. (c): Added.

—1971. Section amended generally.

Federal infrastructure funding. 2021, No. 55 , § 12 provides: “(a) Notwithstanding Sec. 1 of this act; 2020 Acts and Resolves No. 121, Sec. 1; 19 V.S.A. § 10g(n) ; and 32 V.S.A. § 706 , if a federal infrastructure bill or other federal legislation that provides for infrastructure funding is enacted that provides Vermont with additional federal funding for transportation-related projects, the Secretary, with approval from the Joint Transportation Oversight Committee pursuant to subdivision (c)(2) of this section, is authorized to exceed federal monies spending authority in the Fiscal Year 2021 and Fiscal Year 2022 Transportation Programs and to obligate and expend federal monies and up to $2,000,000.00 in State Transportation Fund monies on development and evaluation for additional projects that meet federal eligibility and readiness criteria and have been evaluated through the Agency’s prioritization process but are not in the Fiscal Year 2021 or Fiscal Year 2022 Transportation Program.

“(b) Nothing in subsection (a) of this section shall be construed to authorize the Secretary to obligate or expend:

“(1) State TIB funds above amounts authorized in the Fiscal Year 2021 or Fiscal Year 2022 Transportation Program; or

“(2) State Transportation Fund monies if the Agency does not:

“(A) expect to accept and obligate federal monies pursuant to subsection (a) of this section in an amount sufficient to cover the additional expenditure of State Transportation Fund monies; and

“(B) expect the projects for which State Transportation Fund monies are used to eventually be eligible for funding entirely through federal monies.

“(c)(1) The Agency shall promptly report the obligation or expenditure of monies under the authority of this section to the House and Senate Committees on Transportation and to the Joint Fiscal Office while the General Assembly is in session.

“(2)(A) Consistent with 19 V.S.A. § 12b(c) , the Agency shall promptly report any changes in the availability of federal funds and the anticipated obligation or expenditure of monies under the authority of this section to the Joint Fiscal Office, the Joint Fiscal Committee, and the Joint Transportation Oversight Committee.

“(B) If the Joint Transportation Oversight Committee disapproves of the anticipated obligation or expenditure of monies under the authority of this section, it shall provide notice of that disapproval, and an explanation of the basis for the disapproval, to the Agency within 30 calendar days following receipt of the report of the anticipated expenditure.

“(C) If the Joint Transportation Oversight Committee disapproves of an anticipated obligation or expenditure of monies under subdivision (B) of this subdivision (2), the Agency may revise and resubmit for further consideration.

“(D) If the Joint Transportation Oversight Committee does not disapprove of the anticipated obligation or expenditure of monies under the authority of this section within 30 calendar days of receipt of the report of the anticipated obligation or expenditure or receipt of a revised submittal, then the anticipated obligation or expenditure is deemed approved.

“(d) Subsections (a) and (b) of this section shall continue in effect until February 1, 2022.”

Transfer of funds within Legislative Branch. 2021, No. 74 , § E.126, as amended by 2021, No. 83 (Adj. Sess.), § 55, provides: “(a) Notwithstanding 32 V.S.A. § 706 , in fiscal year 2022, appropriations within the Legislative Branch may be transferred between respective offices to ensure a balanced close-out in the fiscal year.

“(b) The Joint Fiscal Office shall be reimbursed by a transfer from the Legislative budget for any costs incurred in contracting with an economist or independent consulting entity for the study created in 2021 Acts and Resolves No. 45, Sec. 14.”

CROSS REFERENCES

Authority of Agency of Transportation regarding transfers of funds for rehabilitation of historic bridges, see 19 V.S.A. § 11d .

Notes to Opinions

Emergency board.

Transfer of balance of appropriation in excess of $10,000 from parks to forests with approval of Emergency Board was proper. 1962-64 Vt. Op. Att'y Gen. 186.

§§ 707-709. Repealed. 1995, No. 178 (Adj. Sess.), § 283a.

History

Former §§ 707-709. Former § 707, relating to limits on expenditures, was derived from 1959, No. 325 (Adj. Sess.), § 1.

Former § 708, relating to approval of appropriations by the Governor, was derived from 1959, No. 325 (Adj. Sess.), § 2.

Former § 709, granting the Governor certain authority when purposes of appropriations were unattainable, was derived from 1959, No. 325 (Adj. Sess.), § 3.

§ 710. Payment of State agency fees.

  1. 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).
  2. 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.

HISTORY: 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.

History

Amendments

—2015. Subsec. (a): Added “except for those fees established under 3 V.S.A. § 2822(j)(2)(A) (iii), (j)(10), (j)(11), and (j)(26)” at the end of the sentence.

Subdiv. (b)(1): Added “except for those fees established under 3 V.S.A. § 2822(j)(2)(A) (iii), (j)(10), (j)(11), and (j)(26)” to the end of the sentence.

Subdiv. (b)(2): Added “except for those fees established under 3 V.S.A. § 2822(j)(2)(A) (iii), (j)(10), (j)(11), and (j)(26)” to the end of the first sentence.

—2005 (Adj. Sess.). Subsec. (a): Inserted “and” following “municipalities” and substituted “public safety” for “labor and industry” following “department of”.

Subsec. (b): Substituted “department of public safety” for “department of labor and industry” in the introductory paragraph.

—2003 (Adj. Sess.). Subsecs. (a) and (b): Substituted “a district environmental commission” for “the environmental board” following “industry”.

—1999 (Adj. Sess.). Section amended generally.

—1995 (Adj. Sess.) Subsec. (b): Substituted “department of buildings and general services” for “department of state buildings”.

—1993 (Adj. Sess.) Subsec. (b): Added “except that all fees shall be paid for reviews, inspections or permits required by municipal solid waste facilities developed by a solid waste district which serves, or is expected to serve, in whole or in part, parties located outside its own district boundaries pursuant to chapter 159 of Title 10”.

§ 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 comprehensive annual financial report.

HISTORY: Added 2001, No. 61 , § 67, eff. June 16, 2001; amended 2001, No. 142 (Adj. Sess.), § 320, eff. June 21, 2002.

History

Revision note

—2013. Deleted “but not limited to” following “including” in accordance with 2013, No. 5 , § 4.

Amendments

—2001 (Adj. Sess.) In the first sentence, inserted “except a municipality as defined in section 126 of Title 1” following “section 128 of Title 1”, inserted “in that fiscal year in the cumulative principal amount greater than $1,000,000.00” following “incur any debt” and added the second sentence.

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.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 22; 1967, No. 91 , § 2.

History

Source.

V.S. 1947, § 545. 1945, No. 7 , § 1. 1939, No. 9 , § 8. P.L. § 490. 1933, No. 157 , § 431. 1923, No. 7 , § 43. 1919, No. 21 , § 2.

Revision note—

Reference to “section 162a(1)” was changed to “subdivision 163(1)” to conform to renumbering of such section.

Reference to “department of administration” changed to “agency of administration” to conform reference to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—1967. Section amended generally; added reference to § 162a(1) of this title in sentence beginning “The provisions of this section . . .”.

—1959 (Adj. Sess.) Provided for examination of Department of Administration instead of Auditor, deleted provision for annual examination and provided for audit in discretion of Emergency Board, and added provision relating to construction of section.

CROSS REFERENCES

Annual audit of Treasurer’s accounts, see Vt. Const. Ch. II, § 26.

Notes to Opinions

Public inspection.

There is no requirement that copies of report shall be made available at State Library for public inspection, but there is no objection to such procedure. 1946-48 Vt. Op. Att'y Gen. 99.

§ 802. Repealed. 1969, No. 219 (Adj. Sess.), § 4, eff. March 27, 1970.

History

Former § 802. Former § 802, relating to audit of accounts of State departments and institutions, was derived from V.S. 1947, § 564; P.L. § 510; 1925, No. 18 , § 1.

§ 803. Repealed. 1987, No. 243 (Adj. Sess.), § 63, eff. June 13, 1988.

History

Former § 803. Former § 803, relating to excessive payment for supplies, was derived from V.S. 1947, § 565 and amended by P.L. § 511; G.L. § 581; P.S. § 415; 1904, No. 162 , § 1; and 1959, No. 328 (Adj. Sess.), § 8.

§ 804. Repealed. 1977, No. 146 (Adj. Sess.), § 6.

History

Former § 804. Former § 804, relating to audit of county expenses, was derived from V.S. 1947, § 568; P.L. § 515; G.L. § 587; P.S. § 420; V.S. § 311; R.L. § 224; 1880, No. 118 , § 1; 1878, No. 47 , § 4; G.S. 12, § 102; 1846, No. 25 , § 2; R.S. 105, §§ 17-19; 1804, p. 100; 1801, p. 27; R. 1797, p. 205, § 6 and amended by 1965, No. 194 , § 10; 1973, No. 249 (Adj. Sess.), § 91.

§ 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.

HISTORY: Amended 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 2017, No. 83 , § 161(5).

History

Source.

V.S. 1947, § 570. P.L. § 517. G.L. § 591. 1917, No. 254 , § 578. P.S. § 423. V.S. § 313. R.L. § 225. 1880, No. 118 , § 3. 1876, No. 142 , § 1.

References in text.

Reference to Justices in this section may be obsolete, since justices of the peace no longer have judicial jurisdiction. See 1973, No. 249 (Adj. Sess.).

Amendments

—2017. Substituted “alcohol” for “intoxicating liquors”.

—1965. Substituted “district” for “municipal” judge.

§ 806. Audit where prisoner is bound over.

  1. 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.
  2. 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.

HISTORY: Amended 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1973, No. 249 (Adj. Sess.), § 92, eff. April 9, 1974.

History

Source.

Subsec. (a): V.S. 1947, § 595. P.L. § 541. 1933, No. 157 , § 482. G.L. § 629. P.S. § 426. V.S. § 316. R.L. § 228. 1880, No. 31 , § 3. G.S. 124, § 6. 1860, No. 12 , § 1. R.S. 105, § 7. 1831, No. 17 . 1819, p. 19.

Subsec. (b): 1947, § 596. P.L. § 542. G.L. § 630. 1917, No. 254 , § 616. P.S. § 424. R. 1906, § 384. V.S. § 314. R.L. § 226. 1880, No. 118 , § 4. 1860, No. 47 , § 3. G.S. 12, § 106.

Amendments

—1973 (Adj. Sess.) Deleted reference to justice of the peace.

—1965. Substituted “district” for “municipal” judge.

§ 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.

History

Source.

V.S. 1947, § 571. P.L. § 518. G.L. § 592. P.S. § 425. V.S. § 315. R.L. § 227. 1880, No. 118 , § 5.

CROSS REFERENCES

Uniform system of accounts for sheriff’s departments, see 24 V.S.A. § 290b .

§ 808. Repealed. 1993, No. 227 (Adj. Sess.), § 21.

History

Former § 808. Former § 808, relating to items allowed in audit of sheriff’s accounts, was derived from 1951, No. 234 ; V.S. 1947, §§ 10,511, 10,512; 1947, No. 181 , § 1; P.L. §§ 9007, 9008; 1933, No. 157 , § 8646; 1919, No. 214 , § 1; G.L. §§ 7399, 7412; 1917, No. 254 , § 7173; 1915, No. 1 , § 199; 1908, No. 178 , §§ 5, 8; P.S. § 6203; V.S. § 5356; R.L. § 4498; 1878, No. 38 , § 1, and amended by 1959, No. 229 , § 3; 1965, No. 207 ; 1969, No. 125 , § 13; 1973, No. 189 (Adj. Sess.), § 1; 1975, No. 118 , § 87; 1977, No. 222 (Adj. Sess.), § 13; 1979, No. 141 (Adj. Sess.), § 20; 1981, No. 249 (Adj. Sess.), § 19.

§ 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.

HISTORY: Amended 2009, No. 154 (Adj. Sess.), § 197, eff. Feb. 1, 2011.

History

Source.

V.S. 1947, § 572. P.L. § 519. G.L. § 593. P.S. § 427. V.S. § 317. R.L. § 230. G.S. 126, § 23.

Amendments

—2009 (Adj. Sess.) Added “auditing of court clerk” preceding “accounts” and inserted “and” thereafter in the section heading, and inserted “and superior court clerks” following “probate”, substituted “the auditor” for “he or she” in two places, and “superior” for “probate” in the second sentence.

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.

HISTORY: Amended 2007, No. 121 (Adj. Sess.), § 27.

History

Source.

V.S. 1947, § 542. 1939, No. 9 , § 7. P.L. § 487. 1933, No. 157 , § 428. 1923, No. 7 , §§ 2, 19. G.L. § 547. P.S. § 379. 1906, No. 19 , § 1. V.S. § 272. R.L. § 190. G.S. 8, § 7. 1860, No. 53 , § 3.

Amendments

—2007 (Adj. Sess.) Deleted “and the auditor” following “the secretary of state”.

§ 902. Authorization to borrow money.

  1. 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.
  2. The State Treasurer shall pay the interest on, principal of and expenses of preparing, issuing, and marketing of such notes as the same fall due without further order or authority from the General Fund or from the Transportation or other applicable funds or from the proceeds of bonds or notes. 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.

HISTORY: Added 1993, No. 19 , § 1, eff. May 11, 1993; amended 1995, No. 178 (Adj. Sess.), § 264.

History

Former § 902. Former § 902, relating to consolidation of bond issues, was derived from 1955, No. 258 , and repealed by 1959, No. 24 , § 9, eff. March 10, 1959. See now § 957 of this title.

Revision note

—2013. In subsec. (a), deleted “, but not be limited to,” following “include” in the second sentence and “, but not limited to,” following “including” in the fourth sentence in accordance with 2013, No. 5 , § 4.

Amendments

—1995 (Adj. Sess.) Subsec. (a): Inserted “with notification to the governor” preceding “on behalf of the state” in the first sentence.

Subchapter 2. Claims

CROSS REFERENCES

Remission or mitigation of forfeiture of property used in violation of provisions regulating controlled drugs, see 18 V.S.A. § 4245 .

§ 931. Repealed. 1997, No. 156 (Adj. Sess.), § 48, eff. April 29, 1998.

History

Former § 931. Former § 931, establishing the claims commission, was derived from 1955, No. 213 , §§ 1, 2, and amended by 1981, No. 249 (Adj. Sess.), § 6.

Transition. 1997 (Adj. Sess.), No. 156, which repealed this section and § 934 of this title and amended §§ 932 and 933, provides in § 49: “Notwithstanding 32 V.S.A. § 932 , any person who, at the time of passage of this act [April 29, 1998], has a claim pending before the claims commission or appeal pending before the legislature may, within six months from the passage of this act, refile the claim or matter being appealed as a small claims procedure in accordance with the provisions of chapter 187 of Title 12.”

§ 932. Claims against the State.

  1. 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.
  2. 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.

HISTORY: Amended 1977, No. 94 ; 1997, No. 156 (Adj. Sess.), § 46, eff. April 29, 1998; 1999, No. 8 , § 1.

History

Source.

1955, No. 213 , § 3.

Revision note—

In the second sentence “after the date of the claim accrued” changed to “after the date the claim accrued” for purposes of clarity.

Amendments

—1997 (Adj. Sess.). Substituted “Claims against the state” for “Petition” in the section heading; added the subsec. (a) designation and substituted all the language beginning with “may file a claim” at the end of the subsection for “shall file with the commission a petition under oath stating the facts relating to the same. A claim against the state under this subchapter shall be filed within eighteen months after the date the claim accrued”; and added subsec. (b).

—1977. Provided that claim shall be filed within 18 months after the date the claim accrued.

Transition. 1997 (Adj. Sess.), No. 156, which repealed §§ 931 and 934 of this title and amended this section and § 933, provides in § 49: “Notwithstanding 32 V.S.A. § 932 , any person who, at the time of passage of this act [April 29, 1998], has a claim pending before the claims commission or appeal pending before the legislature may, within six months from the passage of this act, refile the claim or matter being appealed as a small claims procedure in accordance with the provisions of chapter 187 of Title 12.”

§ 932a. Administrative reimbursement for property damages.

  1. 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.
  2. 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.
  3. 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.
  4. If a claim is approved under this section, the Commissioner of Finance and Management shall issue his or her 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 therein. If the claim is disapproved, the person may proceed to file the claim under section 932 of this title.
    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: (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:
      1. been convicted of any criminal offense on account of the act or omission;
      2. been finally terminated by the employing agency; or
      3. 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 .

HISTORY: Added 1999, No. 8 , § 2; amended 2001, No. 72 , § 1.

History

Amendments

—2001. Subsec. (e): Added.

2001 amendment. 2001, No. 72 , § 2, provided, “This act [which amended this section] shall take effect upon passage [June 16, 2001], but shall apply to claims arising on or after July 1, 1999.”

§ 933. Hearing.

  1. 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 .
  2. 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.
  3. Upon award of damages by the Small Claims Court, the Commissioner of Finance and Management shall issue a warrant for such amount, the acceptance of which shall be a full discharge of all claims against the State arising out of the matters involved therein.

HISTORY: 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.

History

Source.

1955, No. 213 , § 4.

Revision note—

Substituted “commissioner of finance and management” for “commissioner of finance and information support” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of the commissioner of that entity to the commissioner of the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. 2002. Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Amendments

—1997 (Adj. Sess.). Replaced the former paragraph with new subsecs. (a) through (c).

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance” in the second sentence.

—1981 (Adj. Sess.) Substituted “$2,000.00” for “$1,000.00” in the first sentence.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor of accounts”.

§ 934. Repealed. 1997, No. 156 (Adj. Sess.), § 48, eff. April 29, 1998.

History

Former § 934. Former § 934, relating to proof of claims, was derived from 1955, No. 213 , § 7; V.S. 1947, § 563; P.L. § 508; G.L. § 582; P.S. § 416; V.S. § 307; R.L. § 220; G.S. 8, §§ 52, 53; 1846, No. 25 , § 19; R.S. 8, § 34; 1825, No. 20 .

§ 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.

History

Source.

1955, No. 213 , § 5.

Subchapter 3. State Bonds

§ 951. Applicability.

This subchapter shall apply to all bonds hereafter authorized by the Legislature, provided that provisions in authorizing acts inconsistent herewith shall control, except as provided in section 957 of this title.

HISTORY: Added 1959, No. 24 , § 1, eff. March 10, 1959.

§ 951a. Debt service funds.

  1. 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.
  2. Financial resources in each fund shall consist of appropriations by the General Assembly to fulfill debt service obligations, 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.
  3. 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.
  4. 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.

HISTORY: Added 2011, No. 63 , § F.101, eff. June 2, 2011.

§ 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 such annual payments to be made not later than five years after the date of such 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 such bonds. The principal, interest, investment returns, and maturity value of such bonds shall be payable in lawful money of the United States or of the country in which the bonds were sold and for such payments the full faith and credit of the State are hereby pledged. Such bonds shall be signed by the State Treasurer or his or her deputy and countersigned by the manual or facsimile signature of the Secretary of State or his or her deputy, and shall bear the Seal of the State or a facsimile thereof, and the interest coupons thereon shall bear the facsimile signature of the State Treasurer. Such 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 such 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 such bonds, within the limitations mentioned herein, shall be determined by the State Treasurer with the approval of the Governor as he or she may deem for the best interests of the State. Such bonds shall contain on the face thereof the statement that they are issued for the purposes mentioned in, under the authority of, and in conformity with the authorizing act, and that the form and other particulars and details thereof have been duly determined by the State Treasurer, with the approval of the Governor; and such statement shall be conclusive evidence of the liability of the State to any bona fide holder thereof, and the bonds so issued shall be the lawful obligations of the State.

HISTORY: 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.

History

Amendments

—1993. Inserted “(which may be fixed or variable)” following “place of payment, rate of interest” and substituted “such rate of interest” for “the same” preceding “original” in the seventh sentence.

—1989 (Adj. Sess.) Added “except for zero coupon bonds or capital appreciation bonds designated as such by the state treasurer, with the approval of the governor, each” preceding “series” in the second sentence, added the third sentence, deleted “and” preceding “interest” and added “investment returns and maturity” thereafter in the fourth sentence, inserted “original stated value, investment returns or manner of determining the same, maturity value” preceding “time” and “sinking fund and reserve requirements” following “premium” in the seventh sentence, and made other minor changes in style.

—1985 (Adj. Sess.) Rewrote the first sentence, inserted “or of the country in which the bonds were sold” following “United States” in the third sentence, substituted “as provided by subchapter 3 of chapter 13” for “in the office of the secretary of state” following “registered” at the end of the fifth sentence, and inserted “or the manner of determining the same” following “rate of interest” in the sixth sentence and “bona fide” preceding “holder” in the seventh sentence.

—1979 (Adj. Sess.) In the sentence which begins “The date of issuance . . .” inserted the words “provisions with respect to redemption prior to maturity, at par or at a premium” preceding “sinking fund and reserve requirements”.

§ 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.

HISTORY: Added 1959, No. 24 , § 3, eff. March 10, 1959; amended 1989, No. 276 (Adj. Sess.), § 23, eff. June 20, 1990.

History

Amendments

—1989 (Adj. Sess.) Inserted “or she” preceding “shall determine” in the first sentence, inserted “or the investment return” preceding “thereon”, deleted “and” preceding “principal” and added “investment return and maturity value” thereafter in the second sentence, and inserted “interest and the investment return on” preceding “such” in the third sentence.

§ 954. Proceeds.

  1. The proceeds arising from the sale of such bonds, inclusive of any premiums, shall be applied to the purposes for which they were authorized and such purposes shall be considered to include the expenses of preparing, issuing, and marketing such bonds and any notes issued under section 955 of this title, and amounts for reserves, but no purchasers of such bonds shall be in any way bound to see to the proper application of the proceeds thereof. The State Treasurer shall pay the interest on, principal of, investment return on, and maturity value of such 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 he or she 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 such bonds then outstanding shall be included in and made a part of the annual appropriation bill for the expense of State government, and such principal and interest on, investment return and maturity value of, and sinking fund installments on the bonds as may come due before appropriations for the fulfillment thereof have been made shall be fulfilled from the applicable debt service fund.
  2. The State Treasurer is authorized to allocate the estimated cost of bond issuance or issuances to the entities to which funds are appropriated by a capital construction act and for which bonding is required as the source of funds. If estimated receipts are insufficient, the State Treasurer shall allocate additional costs to the entities. Any remaining receipts shall not be expended, but carried forward to be available for future capital construction acts. If the source of funds appropriated by a capital construction act is other than by issuance of bonds, the State Treasurer is authorized to allocate the estimated cost of ongoing debt management services to the entities to which those funds are appropriated.
  3. 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 heretofore 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.

HISTORY: 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.

History

Amendments

—2011 (Adj. Sess.) Subsec. (a): Substituted “inclusive of any” for “except” preceding “premiums” in the first sentence, and deleted the former third sentence.

—2011. Subsec. (a): Substituted “fulfill” for “pay” preceding “the maturing”, “fulfillment” for “payment” preceding “thereof”, “fulfilled” for “paid” preceding “from”; deleted “general fund or from the transportation or other” preceding “applicable” and substituted “debt service” for “special” preceding “fund” in the sentence.

—2009. Subsec. (c): Deleted the second sentence.

—2001 (Adj. Sess.) Subsec. (b): Added the second and third sentences.

—2001. Subsec. (b): Added second sentence.

—1999. Added present subsec. (b) and redesignated former subsec. (b) as subsec. (c).

—1995 (Adj. Sess.) Designating the existing text of the section as subsec. (a) and added subsec. (b).

—1989 (Adj. Sess.) Inserted “and amounts for reserves” following “title” in the first sentence, deleted “and” preceding “principal of”, added “investment return on and maturity value of” thereafter and inserted “or accrue” following “fall due” in the second sentence, added the fourth sentence, and inserted “investment return and maturity value of, and sinking fund installments on” following “interest of” and following “interest on” in the fifth sentence.

—1961. Included as purposes of bonds the expenses of preparing, issuing, and marketing the bonds and any notes issued under § 955 of this title; provided for application of premiums to the first principal and interest to come due; and deleted “and the amounts necessary to pay such matured principal and interest are hereby appropriated” from end of section.

2001 amendment. 2001, No. 61 , § 90(b), provides that the amendment by § 32 of this act applies retroactively to July 1, 2000.

§ 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.

HISTORY: Added 1959, No. 24 , § 5, eff. March 10, 1959; amended 1993, No. 19 , § 3, eff. May 11, 1993.

History

Amendments

—1993. Substituted “two years” for “one year” preceding “from its date” and added “of two years” following “required period” in the fourth sentence.

CROSS REFERENCES

Borrowing on notes in anticipation of transportation bonds or federal aid funds, see 19 V.S.A. § 30 .

Notes to Opinions

Condition for borrowing.

Money may be borrowed by the State Treasurer by the issuance of bond anticipation notes approved by the Governor, provided that the funds are used for the same purposes for which the bonds were authorized. 1962-64 Vt. Op. Att'y Gen. 393.

§ 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.

HISTORY: Added 1959, No. 24 , § 6, eff. March 10, 1959.

§ 957. Consolidation.

The bonds authorized by one or more acts of the Legislature may in the discretion of the officers issuing the same be combined upon their issue into one or more consolidated issues. The particular bonds of such consolidated issue issued under each authority may but need not be designated by number or otherwise. The bonds of such consolidated issues may be designated by such titles as may be deemed appropriate by such officers (which shall be in substitution for any titles prescribed by the authorizing acts) and shall contain on the face thereof 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 such statement shall be conclusive evidence of the liability of the State to any bona fide holder thereof, and the bonds so issued shall be the lawful obligations of the State.

HISTORY: Added 1959, No. 24 , § 7, eff. March 10, 1959.

History

Prior law.

1955, No. 258 , former § 902 of this title, was repealed by 1959, No. 24 , § 9, eff. March 10, 1959.

§ 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 the delivery thereof and payment therefor, any or all such officers shall have for any reason ceased to hold office.

HISTORY: Added 1959, No. 24 , § 8, eff. March 10, 1959.

§ 959. Repealed. 1989, No. 52, § 17(a), eff. May 17, 1989.

History

Former § 959. Former § 959, relating to limitations on the issuance of bonds, was derived from 1975, No. 21 .

§ 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.

HISTORY: Added 1981, No. 233 (Adj. Sess.), § 14(c); amended 1999, No. 148 (Adj. Sess.), § 87, eff. May 24, 2000.

History

Amendments

—1999 (Adj. Sess.). Substituted “by the generally assembly for“ for “in” following “bonds authorized” and “or at any time thereafter and until such authorization is rescinded by the general assembly prior to the issuance of such bonds” for “and for the purpose of section 959 of this title any such bonds authorized thereunder and issued in the preceding May or June shall be deemed to have been issued in the year when authorized”.

§ 961. Refunding bonds.

  1. 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 such refunding shall be used to offset General Fund debt service in the fiscal year of such reductions.
  2. 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 such bank or trust company act as the escrow agent of the proceeds, inclusive of any premium, from the sale of such refunding bonds, together with all income derived from the investment of such proceeds, and any other monies to be provided by the State to effectuate the refunding.
  3. 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 such proceeds which shall be 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 such purpose and the holders of such bonds to be refunded shall have a lien upon such monies and the investments thereof 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 thereto without any further act.  Such 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 such parties have notice thereof.  Neither the escrow contract, nor any other instrument relating to such pledges and liens, need be filed or recorded.
  4. The refunding bonds authorized by this section shall be issued in accordance with the provisions of this chapter, provided that installments on such 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 said refunding bonds.
  5. [Repealed.]

HISTORY: 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.

History

Amendments

—1995 (Adj. Sess.) Subsec. (a): Added the second and third sentences.

—1989 (Adj. Sess.) Subsec. (c): Inserted “or investment return or maturity value of” following “interest on” in the second sentence.

Subsec. (e): Repealed.

§ 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.

HISTORY: Added 2011, No. 104 (Adj. Sess.), § 35, eff. May 7, 2012.

History

References in text.

The Internal Revenue Code, referred to in this section, is codified as Title 26 of the United States Code.

Subchapter 4. Transportation Infrastructure Bonds

History

Former subchapter 4. 2009, No. 50 , § 28 enacted new subchapter 4, comprising sections 972-980. Former subchapter 4, relating to Bond Retirement Fund, was derived from 1961, No. 229 , and was repealed 1966, No. 32 , § 3.

Fiscal year 2010 bonding authority. 2009, No. 50 , § 30 provides: “Notwithstanding 32 V.S.A. § 980 , the state treasurer is authorized to issue transportation infrastructure bonds for fiscal year 2010 in a total amount of no more than $10,000,000, provided that the agency requests and the joint transportation oversight committee approves of such issue.”

Authority to issue transportation infrastructure bonds. 2011, No. 153 (Adj. Sess.), § 19 provides: “Pursuant to 32 V.S.A. § 972 , the state treasurer is authorized to issue transportation infrastructure bonds up to a total amount of $11,500,000.00 for the purpose of funding:

“(1) the spending authorized in Sec. 20 of this act;

“(2) a debt service reserve to support the successful issuance of transportation infrastructure bonds; and

“(3) the cost of preparing, issuing, and marketing the bonds as authorized under 32 V.S.A. § 975 .”

Authority to issue transportation infrastructure bonds. 2013, No. 12 , § 10 provides: “Pursuant to 32 V.S.A. § 972 , the State Treasurer is authorized to issue transportation infrastructure bonds up to a total amount of $11,700,000.00 for the purpose of funding:

“(1) the spending authorized in Sec. 11 of this act;

“(2) a debt service reserve to support the successful issuance of transportation infrastructure bonds; and

“(3) the cost of preparing, issuing, and marketing the bonds as authorized under 32 V.S.A. § 975 .”

§ 971. Repealed. 1966, No. 32, § 3.

History

Former § 971. Former § 971, relating to the State Bond Retirement Fund, was derived from 1961. No. 229.

§ 972. Transportation Infrastructure Bonds.

  1. 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.”
  2. As used in this subchapter, the term “debt service obligations” is as defined in section 951a of this title.
  3. 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.
  4. 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.
  5. Pursuant to section 953 of this title, interest and the investment return on the bonds shall be exempt from taxation in this State.
  6. 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.

HISTORY: Added 2009, No. 50 , § 28; amended 2011, No. 63 , § F.103, eff. June 2, 2011.

History

Amendments

—2011. Section amended generally.

§ 973. Issuance of bonds.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. Transportation Infrastructure Bonds shall be registered pursuant to section 981 of this title.

HISTORY: Added 2009, No. 50 , § 28; amended 2011, No. 63 , § F.104, eff. June 2, 2011.

History

Amendments

—2011. Subsec. (d): Substituted “debt service obligations” for “principal, interest, investment returns, and maturity value” preceding “, transportation” and inserted “which require a cash payment” following “bonds”.

§ 974. Security documents.

  1. 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.
  2. 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.
  3. 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.
  4. 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.

HISTORY: Added 2009, No. 50 , § 28; amended 2011, No. 63 , § F.105, eff. June 2, 2011.

History

Amendments

—2011. Subsec. (d): Substituted “debt service obligations” for “principal, interest, investment returns, and maturity value” following “payment of” in two places and deleted the subdiv. (1) and (2) designations”, and deleted the text of former subdiv. (2).

§ 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.

HISTORY: Added 2009, No. 50 , § 28; amended 2011, No. 63 , § F.106, eff. June 2, 2011.

History

Amendments

—2011. Deleted subsec. (a) designation and subsecs. (b) and (c).

§ 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.

HISTORY: 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.

HISTORY: Added 2011, No. 63 , § F.108, eff. June 2, 2011.

§ 976. Anticipation of proceeds.

  1. 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.
  2. 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.
  3. The authority granted under this section is in addition to and not in limitation of any other authority.

HISTORY: 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.

HISTORY: 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.

HISTORY: 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.

HISTORY: Added 2009, No. 50 , § 28; amended 2011, No. 63 , § F.109, eff. June 2, 2011.

History

Amendments

—2011. Subdiv. (1): Inserted “951a,” following “sections”.

Subdiv. (3): Substituted “subsection 974(d)” for “subdivision (974(e)(2)”.

§ 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.

HISTORY: 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 his or her deputy and countersigned by the manual or facsimile signature of the Secretary of State or his or her deputy, and the interest coupons thereon, 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 such 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 such bonds within the limitations mentioned herein, shall be determined by the State Treasurer with the approval of the Governor as he or she may deem for the best interests of the State.

HISTORY: 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.

History

Amendments

—1993. Inserted “(which may be fixed or variable)” following “place of payment, rate of interest” and substituted “such rate of interest” for “the same” preceding “original” in the third sentence.

—1989 (Adj. Sess.) Inserted “or her” preceding “deputy” in two places in the second sentence, “or manner of determining the same, original stated value, investment returns or manner of determining the same, maturity value” preceding “time”, “sinking fund and reserve requirements” following “premium” and “or she” preceding “may deem” in the fourth sentence.

§ 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.

HISTORY: Added 1983, No. 15 , eff. March 29, 1983; amended 1989, No. 276 (Adj. Sess.), § 27, eff. June 20, 1990.

History

Amendments

—1989 (Adj. Sess.) Inserted “or her” preceding “designee” “maturity value” following “amount” and “investment returns” following “rate” in the third sentence.

§ 983. Confidential registry.

The books of registry held by the State Treasurer or other designated registrar shall be confidential and the information contained therein shall not be available to the public.

HISTORY: Added 1983, No. 15 , eff. March 29, 1983.

§ 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.

HISTORY: 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 herein as they apply to bonds or notes issued by the State, but shall not diminish or restrict any powers heretofore granted by law.

HISTORY: Added 1983, No. 15 , eff. March 29, 1983.

Subchapter 6. Private Activity Bonds

History

Private Activity Bond Advisory Committee. 2015, No. 157 (Adj. Sess.), § F.4 provides: “Notwithstanding any provision of 32 V.S.A. § 994 to the contrary, the Private Activity Bond Advisory Committee shall not meet or perform its statutory duties except upon call of the Vermont State Treasurer in his or her discretion.”

§ 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.

HISTORY: Added 1985, No. 25 , § 1; amended 1987, No. 36 , § 1, eff. Jan. 1, 1988; 1993, No. 89 , § 3(a), eff. June 15, 1993.

History

References in text.

Section 141 of the Internal Revenue Code of 1986, referred to in subdiv. (1), is codified as 26 U.S.C. § 141.

Amendments

—1993. Subdiv. (2): Substituted “Vermont economic development authority” for “Vermont industrial development authority” in the second sentence.

—1987. Subdiv. (1): Substituted “section 141” for “section 103(n)” preceding “of the Internal Revenue Code of” and “1986” for “1954” thereafter in the first sentence.

Subdiv. (2): Deleted “of Vermont” following “state” in two places and added “including municipal corporations” following “bonds” in the first sentence and inserted “the Vermont municipal bond bank” following “agency” in the second sentence.

§ 992. Allocation; authority.

  1. 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.
    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. (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.

HISTORY: Added 1985, No. 25 , § 1; amended 1987, No. 36 , § 2, eff. May 11, 1987; 2017, No. 74 , § 135.

History

References in text.

Section 146 of the Internal Revenue Code of 1986, referred to throughout this section, is codified as 26 U.S.C. § 146.

Amendments

—2017. Added the subdiv. designations and in subdiv. (b)(1) substituted “that” for “which” following “activity bonds” in the first sentence and “32” for “3” preceding “V.S.A.” in the second sentence.

—1987. Subsec. (a): Substituted “146” for “103(n)” preceding “of the Internal Revenue Code of”, “1986” for “1954” thereafter and “not included in gross income of recipients thereof for federal income tax purposes” for “exempt from federal income taxes” following “interest on which is” in the first sentence.

Subsec. (b): Substituted “146” for “103(n)” preceding “of the Internal Revenue Code of” and “1986” for “1954” thereafter in the last sentence.

§ 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.

HISTORY: Added 2011, No. 104 (Adj. Sess.), § 36, eff. May 7, 2012.

History

References in text.

Section 147(f)(2) of the Internal Revenue Code of 1986, referred to in this section, is codified as 26 U.S.C. § 147(f) (2).

§ 994. Advisory Committee.

    1. Creation; composition.   There is created a Private Activity Bond Advisory Committee, which shall consist of the following members: (a) (1) Creation; composition.   There is created a Private Activity Bond Advisory Committee, which shall consist of the following members:
      1. the State Treasurer or his or her designee;
      2. the Secretary of Administration or his or her designee;
      3. the Secretary of Commerce and Community Development or his or her designee;
      4. two members who shall be representatives of the public, appointed by the Governor.
    2. Each public representative shall serve for a two-year term beginning February 1, or until his or her successor is appointed. The terms of the public representatives shall be staggered so that only one member’s term expires in each year.
    3. The State Treasurer or designee shall serve as Chair of the Committee.
    4. The Office of the State Treasurer shall provide administrative support to the Committee.
    5. Public representatives may receive reimbursement of expenses and per diem compensation pursuant to section 1010 of this title.
  1. Committee charge.
    1. The Committee shall survey the expected need for private activity bond allocations among constituted and eligible issuing authorities empowered to issue such bonds on an annual basis.
      1. The Committee shall develop 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 the Committee determines will benefit the citizens of Vermont. (2) (A) The Committee shall develop 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 the Committee determines will benefit the citizens of Vermont.
      2. The 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.
    2. The Committee shall meet at least annually and shall hold at least one public hearing prior to submitting its recommendations to the Emergency Board. The Committee shall further submit its recommendations in an annual report of its activities to the Governor and the General Assembly.
    3. On or before December 1 of each year, the Committee 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.
    4. On its own initiative, at the request of the Governor or at the request of the Emergency Board, the Committee may 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.

HISTORY: Added 2011, No. 110 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2013, No. 1 , § 98.

History

Editor’s note

—2011 (Adj. Sess.). This section was originally enacted as § 993 of this title and was redesignated to avoid conflict with § 993 of this title as previously enacted by 2011, No. 104 (Adj. Sess.), § 36.

Amendments

—2013. Subdiv. (b)(5): Substituted “an” for “the emergency board’s initial” preceding “allocation” and inserted “by the Emergency Board” following “allocation”.

Subchapter 7. Federal Taxation of Interest

§ 995. Agreements for the exemption of interest.

  1. It is hereby found and determined that proposed amendments to the Internal Revenue Code of 1986, including, particularly, Section 103 thereof, and the regulations of the U.S. Treasury Department thereunder, require the State, municipal corporations, and agencies and instrumentalities thereof (hereinafter 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 thereof for federal income tax purposes.  It is hereby further found and determined that it is in the best interests of such issuers to leave no ambiguity as to whether such issuers have the authority to enter into such agreements, make such covenants, or take such other actions.
  2. 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 thereof for federal income tax purposes.
  3. Notwithstanding the provisions of 24 V.S.A. § 1753 , 24 V.S.A. § 4648 , and 32 V.S.A. § 954 , 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 such 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 thereof for federal income tax purposes.

HISTORY: Added 1985, No. 125 (Adj. Sess.), § 4, eff. April 18, 1986; amended 1987, no. 36, § 3, eff. May 11, 1987.

History

Revision note—

In the first sentence of subsec. (a), inserted “make” preceding “covenants” for purposes of clarity.

Editor’s note—

The proposed amendments to the Internal Revenue Code to which reference is made in subsec. (a) were contained in Public Law 99-514, 100 Stat. 2085, commonly referred to as the Tax Reform Act of 1986. The disposition of provisions relating to taxation of interest on state and local bonds in the Internal Revenue Code of 1986 differs from that in the Internal Revenue Code of 1954. The general rule for tax exemptions for state and local bonds is set out in 26 U.S.C. § 103. Specific tax exemption requirements for state and local bonds are set out in 26 U.S.C. § 141 et seq.

For transitional rules, see Sections 1312-1318 of Public Law 99-514, 100 Stat. 2659-2711, noted under 26 U.S.C. § 103.

Amendments

—1987. Subsec. (a): Rewrote the first sentence.

Subsec. (b): Substituted “not included in gross income of the recipients thereof for federal income tax purposes” for “exempt from federal income taxation” following “bonds is”.

Subsec. (c): Inserted “appropriate and” following “authorized to” and substituted “not included in gross income of the recipients thereof for federal income tax purposes” for “exempt from federal income taxation” following “interest on their respective bond is”.

§ 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.

HISTORY: Added 1985, No. 125 (Adj. Sess.), § 4, eff. April 18, 1986; amended 1987, No. 36 , § 4, eff. May 11, 1987.

History

Amendments

—1987. Substituted “however” for “as” preceding “defined”, deleted “in 24 V.S.A. § 1751 ” thereafter, and added “of this title” following “section 995” in the first and second sentences.

§ 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 gross income of the recipients thereof for federal income tax purposes pursuant to this chapter, the State will not limit or alter the power to perform such agreement or covenant or take such action or in any way impair the rights and remedies of any such holders, until such bonds, together with the interest thereon, and all costs and expenses in connection with any action or proceeding by or on behalf of such 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.

HISTORY: Added 1985, No. 125 (Adj. Sess.), § 4, eff. April 18, 1986; amended 1987, No. 36 , § 5, eff. May 11, 1987.

History

Amendments

—1987. Rewrote the first sentence.

Challenge of federal tax regulations by issuer. 1987, No. 36 , § 9, provided: “Nothing contained in this act [which amended this section and sections 476, 991, 992, 995, and 996 of this title and added section 998 of this title] shall be construed as a waiver on the part of any issuer to challenge or contest the legality, efficacy or enforceability of any provision of the United States Internal Revenue Code of 1986, as amended, specifically and not by way of limitation, any provision of said Code, or any regulation thereunder, which purports to include as income to any taxpayer the interest paid on any debt obligation of an issuer.”

§ 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.

HISTORY: 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.

HISTORY: 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.

HISTORY: Added 1989, No. 258 (Adj. Sess.), § 1.

History

Effect of section on agreements with holders of bonds or notes issued on or before July 1, 1990. 1989, No. 258 (Adj. Sess.), § 5, provided: “This act [which added this section and sections 309, 310, 701a, and 1001 of this title] shall not be construed or interpreted to limit or alter the rights of the state or any instrumentality to fulfil the terms of any agreements made with the holders of any bonds, notes or other obligation of the state or such instrumentality issued and outstanding on or prior to the effective date of the act [July 1, 1990], or in any way to impair the rights and remedies of such holders.”

§ 1001. Capital Debt Affordability Advisory Committee.

  1. Committee established.   A Capital Debt Affordability Advisory Committee is hereby created with the duties and composition provided by this section.
  2. 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 State Legislature 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.
  3. 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 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:
      1. will be outstanding; and
      2. 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:
      1. existing outstanding debt;
      2. previously authorized but unissued debt; and
      3. projected bond authorizations.
    4. The criteria that recognized bond rating agencies use to judge the quality of issues of State bonds, including:
      1. 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; and
      2. existing and projected total net tax-supported debt outstanding as a percentage of total State personal income.
    5. The principal amounts currently outstanding, and balances for the next fiscal year, and annually for the following nine fiscal years, of existing:
      1. obligations of instrumentalities of the State for which the State has a contingent or limited liability;
      2. 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 State Legislature is permitted to replenish reserve funds; and
      3. 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:
      1. the ability of the State to meet its projected debt service requirements for the next five fiscal years; or
      2. 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.
  4. Committee composition.
    1. Committee membership shall consist of:
      1. As ex officio members:
        1. the State Treasurer;
        2. the Secretary of Administration; and
        3. a representative of the Vermont Municipal Bond Bank chosen by the directors of the Bank.
      2. 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.
      3. The Auditor of Accounts who shall be a nonvoting ex officio member.
      4. 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.
      5. 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.
  5. 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.
  6. 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.

HISTORY: 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.

History

Revision note

—2020. In subsec. (e), substituted “Legislative Counsel” for “Legislative Council” in accordance with 2019, No. 144 (Adj. Sess.), § 12(1).

—2013. In subdiv. (c)(4), deleted “but not limited to” following “including” in accordance with 2013, No. 5 , § 4.

Editor’s note

—2008. The text of this section is based on the harmonization of two amendments. During the 2007 Adj. Session, this section was amended twice, by Act Nos. 121 and 200, resulting in two versions of this section. In order to reflect all of the changes enacted by the Legislature during the 2007 Adj. Session, the text of Act Nos. 121 and 200 was merged to arrive at a single version of this section. The changes that each of the amendments made are described in the amendment notes set out below.

Amendments

—2019. Subdiv. (d)(1)(E): Added. su

—2013 (Adj. Sess.). Subsec. (c): Added the second sentence.

—2009. Subdiv. (b)(3): Added.

—2007 (Adj. Sess.) Subdiv. (d)(1): Act No. 121 deleted former subdiv. (A)(ii) and redesignated former subdivs. (A)(iii) and (A)(iv) as present subdivs. (A)(ii) and (A)(iii), and added subdiv. (C).

Act No. 200 substituted “net state tax-supported” for “general obligation” throughout the section; rewrote subdiv. (c)(6), added (c)(7) and (c)(8), redesignated former (c)(7) and (c)(8) as (c)(9) and (c)(10); rewrote subdivs. (d)(1)(A)(iv) and (d)(1)(B); and added subdiv. (d)(1)(C) [now codified as (d)(1)(D)].

§ 1001a. Reports.

  1. 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.
  2. 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.

HISTORY: 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.

History

Amendments

—2017. Subsec. (a): Added the subsection designation.

Subdiv. (a)(1): Deleted the period at the end; and added “; and”.

Subdiv. (a)(2): Deleted second sentence.

Subsec. (b): Added.

—2013 (Adj. Sess.). Subdiv. (2): Added the second sentence.

—2009. Section amended generally.

Chapter 15. Salaries and Fees

CROSS REFERENCES

Insurance benefits for State employees, see 3 V.S.A. chapter 21.

Deferred compensation programs for employees of a public agency, see 3 V.S.A. chapter 22.

Subchapter 1. State Officers

History

Restoration of salary. 2011, No. 130 (Adj. Sess.), § 1 provides: “(a) The amount equal to the three-percent reduction in salaries taken on July 1, 2010 by exempt employees in the Executive Branch who earned less than $60,000.00 annually may be restored to those salaries in fiscal year 2013.

“(b) The amount equal to the five-percent reduction in salaries taken on January 1, 2009 by exempt employees in the Executive Branch who earned $60,000.00 or more annually may be restored to those salaries in fiscal year 2013.

“If the Secretary of Administration determines that the salary of an exempt employee in the Executive Branch who earns less than $60,000.00 annually and was hired or promoted after July 1, 2010 reflects a three-percent reduction in pay, the secretary may restore the amount equal to the three-percent reduction to that salary in fiscal year 2013.

“If the Secretary of Administration determines that the salary of an exempt employee in the Executive Branch who earns $60,000.00 or more annually and was hired or promoted after January 1, 2009 reflects a five-percent reduction in pay, the secretary may restore the amount equal to the five-percent reduction to that salary in fiscal year 2013.”

Cost-of-living adjustments. 2011, No. 130 (Adj. Sess.), § 2 provides: “(a) Exempt employees in the Executive Branch earning less than $60,000.00 annually may receive a cost-of-living adjustment in fiscal year 2013 of two percent.

“(b) Exempt employees in the executive branch earning $60,000.00 or more annually may or may not receive a cost-of-living adjustment in fiscal year 2013.

“(c) Exempt employees in the executive branch may receive a cost-of-living adjustment in fiscal year 2014.”

Rate of adjustment. 2011, No. 130 (Sess.), § 3 provides: “For purposes of determining annual salary adjustments, special salary increases, and bonuses under 32 V.S.A. §§ 1003(b) and 1020(b), the ‘total rate of adjustment available to classified employees under the collective bargaining agreement’ shall be deemed to be 2.85 percent in fiscal year 2013 and 3.7 percent in fiscal year 2014.”

Exempt employees; pay increases in Fiscal Years 2015 and 2016. 2013, No. 160 (Adj. Sess.), § 1 provides: “Exempt employees in the Executive Branch may receive a cost-of-living increase in fiscal years 2015 and 2016 not to exceed 3.3 percent.”

Exempt employees; pay increases in Fiscal Years 2017 and 2018. 2015, No. 172 (Adj. Sess.), § Fl provides: “Exempt employees in the Executive Branch may receive cost-of-living increases not to exceed 3.7 percent in fiscal year 2017 and not to exceed 3.95 percent in fiscal year 2018.”

Exempt employees; pay increases in Fiscal Years 2019 and 2020. 2017, No. 191 (Adj. Sess.), § 1 provides: “(a) Exempt employees in the Executive Branch may receive salary increases not to exceed:

“(1) In Fiscal Year 2019: (A) 1.9 percent beginning on July 8, 2018; and (B) 1.35 percent beginning on January 6, 2019.

“(2) In Fiscal Year 2020: (A) 1.9 percent beginning on July 7, 2019; and (B) 1.35 percent beginning on January 5, 2020.

“(b) The permitted increases set forth in subsection (a) of this section are consistent with the collective bargaining agreement between the State and the Vermont State Employees’ Association for classified employees in the Executive Branch, which provides for a 1.9 percent step increase in July 2018 and 2019 and a 1.35 percent across-the-board increase in January 2019 and 2020, resulting in an overall budgetary impact of 2.575 percent in Fiscal Year 2019 and of 3.25 percent in Fiscal Year 2020.”

Executive Branch; exempt employees; permitted salary increases; fiscal year 2022. 2021, No. 74 , § F.101 provides: “(a) Exempt employees in the Executive Branch may receive salary increases not to exceed the average rate of adjustment available to classified employees, which is 4.15 percent, in fiscal year 2022 beginning on July 4, 2021.

“(b) The permitted increases set forth in subsection (a) of this section are consistent with the collective bargaining agreement between the State and the Vermont State Employees’ Association for classified employees in the Executive Branch for fiscal year 2022.”

§ 1001. Repealed. 1965, No. 125, § 23, eff. July 2, 1965.

History

Former § 1001. Former § 1001 relating to fixed salaries was derived from 1969, No. 96 ; 1961, No. 285 , § 1; 1957, No. 298 , § 3; 1955, No. 165 , § 1; 1953, No. 253 , § 1; 1951, No. 226 , § 1; 1951, No. 227 , § 1; 1949, No. 255 , § 1; V.S. 1947, § 10,421; 1947, No. 176 , § 1; 1945, No. 184 , § 1.

Present § 1001. The current § 1001 is presently contained in chapter 13 of this title.

§ 1002. Salary of Governor-Elect.

  1. 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.
  2. 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.

HISTORY: Added 1963, No. 121 ; amended 1987, No. 121 , § 1; 2011, No. 3 , § 91, eff. Feb. 17, 2011; 2015, No. 58 , § B.1109.

History

Amendments

—2015. Subsec. (b): Inserted “be entitled to” following “The Governor-Elect shall” in the first sentence.

—2011. Subsec. (a): Substituted “ 17 V.S.A. § 2592 ” for “section 1222 of Title 17”.

—1987. Subsec. (b): Substituted “70 percent of the regular weekly salary of the governor” for “$ 2,000.00” preceding “for the period” in the first sentence and inserted “or she” preceding “was elected” in the second sentence.

§ 1003. State officers.

  1. Each elective officer of the Executive Department is entitled to an annual salary as follows:

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  2. 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 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 classified employees under the collective bargaining agreement then in effect.
    1. Heads of the following Departments and Agencies:

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    2. The Secretary of Administration may include the Director of the Office of Professional Regulation in any pay plans that may be established under the authority of subsection 1020(c) of this title, provided the minimum hiring rate does not fall below a base salary, as of January 5, 2020 of $80,041.00 and as of July 4, 2021 of $83,363.00.
    3. If the Chair of the Natural Resources 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.
  3. The officers of the Judicial Branch named in this subsection shall be entitled to annual salaries as follows:

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  4. 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.
  5. Notwithstanding the maximum salary established in subsection (b) of this section, the maximum salary for the Commissioner of Health shall not exceed $150,000.00.

Annual Salary Annual Salary as of as of January 5, 2020 July 4, 2021 Governor $184,113 $191,754 Lieutenant Governor 78,153 81,396 Secretary of State 116,745 121,590 State Treasurer 116,745 121,590 Auditor of Accounts 116,745 121,590 Attorney General 139,790 145,591

Base Salary Base Salary as of as of January 5, 2020 July 4, 2021 (A) Administration $111,332 $115,952 (B) Agriculture, Food and Markets 111,332 115,952 (C) Financial Regulation 104,079 108,398 (D) Buildings and General Services 104,079 108,398 (E) Children and Families 104,079 108,398 (F) Commerce and Com- munity Development 111,332 115,952 (G) Corrections 104,079 108,398 (H) Defender General 104,079 108,398 (I) Disabilities, Aging, and Independent Living 104,079 108,398 (J) Economic Development 94,413 98,331 (K) Education 111,332 115,952 (L) Environmental Conservation 104,079 108,398 (M) Finance and Management 104,079 108,398 (N) Fish and Wildlife 94,413 98,331 (O) Forests, Parks and Recreation 94,413 98,331 (P) Health 104,079 108,398 (Q) Housing and Community Development 94,413 98,331 (R) Human Resources 104,079 108,398 (S) Human Services 111,332 115,952 (T) Digital Services 111,332 115,952 (U) Labor 104,079 108,398 (V) Libraries 94,413 98,331 (W) Liquor and Lottery 94,413 98,331 (X) [Repealed.] (Y) Mental Health 104,079 108,398 (Z) Military 104,079 108,398 (AA) Motor Vehicles 94,413 98,331 (BB) Natural Resources 111,332 115,952 (CC) Natural Resources Board Chair 94,413 98,331 (DD) Public Safety 104,079 108,398 (EE) Public Service 104,079 108,398 (FF) Taxes 104,079 108,398 (GG) Tourism and Marketing 94,413 98,331 (HH) Transportation 111,332 115,952 (II) Vermont Health Access 104,079 108,398 (JJ) Veterans’ Home 104,079 108,398

Annual Salary as of January 5, 2020 Annual Salary as of July 4, 2020 (1) Chief Justice of Supreme $177,203 $184,557 Court (2) Each Associate Justice 169,121 176,140 (3) Administrative Judge 169,121 176,140 (4) Each Superior judge 160,777 167,449 (5) [Repealed.] (6) Each magistrate 121,224 126,255 (7) Each Judicial Bureau hearing 121,224 126,255 Officer

HISTORY: 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. 1 96 (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.

History

Revision note—

Subdiv. (b)(2)(F) as added by Act No. 250 was redesignated as subdiv. (b)(2)(E) for purposes of conformity with V.S.A. style.

Act No. 204 added subdiv. (b)(2)(F) which was renumbered as (E) to conform subdivision with relettering of subsec. (b)(2) by No. 222.

Subdiv. (b)(2)(E) was enacted as subdiv. (D) by Act No. 109, § 15, but was renumbered as (E) to avoid conflict with subdiv. (D) which was added by Act No. 105, § 19.

Subdiv. (b)(1)(J): Reference to “Employment security” was changed to “Employment and training” pursuant to 1981, No. 66 , § 5, eff. May 1, 1981.

Subdiv. (b)(1)(N): Reference to “Forests and parks” was changed to “Forests, parks, and recreation” to conform with new title of department. See 3 V.S.A. § 2872 .

Subdiv. (b)(1)(DD): Words “and environmental engineering” were added to conform with new title of Department [and subsequently amended to read Environmental Conservation, see 1987 amendment note below].

Substituted “Prevention, assistance, transition, and health access” for “Social welfare” in subdiv. (b)(1)(Y) in light of amendment by 1999 (Adj. Sess.), No. 147, § 4.

Editor’s note—

1997, No. 61 , § 271(a) provided for the repeal of subdiv. (b)(2)(A) relating to salary of the rate setting director. However, the provisions relating to the salary of the rate setting director were previously deleted by the amendment to this section by 1997, No. 28 , § 1, eff. May 15, 1997.

Amendments

—2021. Section amended generally.

—2019. Subdiv. (b)(1)(W): Substituted “and Lottery” for “Control”.

Subdiv. (b)(1)(X): Repealed.

—2017 (Adj. Sess.). Subsec. (a): Amended generally.

Subsec. (b)(1): Amended generally.

Subsec. (b)(2): Substituted “July 7, 2019 of $78,975.00 and as of January 5, 2020 of $80,041.00” for “July 8, 2018, of $76,470.00 and as of January 6, 2019, of $77,502.00”.

Subsec. (c): Amended generally.

—2015 (Adj. Sess.). Changed salary amounts and dates throughout the section.

—2015. Subsec. (c): Deleted “annual salaries of the” preceding “officers” and inserted “entitled to annual salaries” preceding “as follows”.

—2013 (Adj. Sess.). Rewrote the tables in subsec. (a) and subdiv. (b)(1), and substituted “July 13, 2014, of $67,392.00 and as of July 12, 2015, of $69,616.00” for “July 8, 2007 of $65,239.00” at the end of subdiv. (b)(2).

Subsec. (c): Rewrote the table.

—2013. Act No. 50 substituted “Economic Development” for “Economic housing, and community development” in subdiv. (1)(J) and substituted “Housing and Community Development 76,953” for “Repealed” in subdiv. (1)(Q).

Act No. 56 substituted “90,745” for “84,834” in subdiv. (1)(K).

—2011 (Adj. Sess.) Subdiv. (b)(1): Adjustments made to salary figures throughout by Act No. 130.

Subsec. (c): Adjustments made to salary figures throughout and new column added for salaries as of July 14, 2013 by Act No. 130.

Subdiv. (c)(5): Repealed by Act No. 130.

—2007 (Adj. Sess.). Subdiv. (b)(1): Amended generally.

—2007. Act No. 47 revised the tables throughout the section to provide salary increases as of July 8, 2007.

Subsec. (e): Added by Act No. 65.

—2005. Section amended generally.

—2003 (Adj. Sess.). Act No. 115 substituted “natural resources board” for “environmental board” in subdivs. (b)(1)(M) and (b)(3).

Act No. 156 revised the tables throughout the section to provide salary increases as of July 11, 2004.

—2003. Revised the tables throughout the section to provide salary increases as of July 13, 2003.

—2001. Section amended generally.

—1999. Revised the tables throughout the section to provide salary increases as of July 4, 1999 and July 2, 2000 and thereafter.

—1997 (Adj. Sess.) Subsec. (c): Substituted “judicial bureau” for “traffic and municipal ordinance bureau” near the end of the salary table.

—1997. Amended subsecs. (a)-(c) generally.

—1995 (Adj. Sess.) Act No. 177 amended the subsecs. (a)-(c) generally.

Act No. 148 substituted “Libraries” for “State Library” in subdiv. (b)(1)(AA) and substituted “Buildings and general services” for “State buildings” in subdiv. (b)(1)(GG), and repealed subdiv. (b)(1)(HH).

Act No. 174 substituted “developmental and mental health services” for “mental health and mental retardation” in subdiv. (b)(1)(R).

Act No. 180 substituted “banking, insurance, securities, and health care administration” for “banking, insurance, and securities” in subdiv. (b)(1)(C).

Act No. 190 substituted “does not exceed the maximum salary unless otherwise authorized by this subsection” for “is thirty percent above the base salary; provided however, that the hiring maximum shall not apply to a state employee who is hired into an appointive position within this subsection” in the first sentence of subsec. (b) and “commerce and community development” for “development and community affairs” in subdiv. (b)(1)(G).

—1993 (Adj. Sess.) Subsec. (a): Increased salaries generally.

Subdiv. (b)(1): Increased salaries generally.

Subdiv. (b)(2): Increased salaries generally and added subdiv. (F).

Subdiv. (b)(5): Added.

Subsec. (c): Increased salaries generally and added subdiv. (6).

—1991 (Adj. Sess.) Amended subsecs. (b) and (c) generally.

—1989 (Adj. Sess.) Act No. 187 added “and mental retardation” following “health” in subdiv. (b)(1)(R).

Act No. 219 substituted “aging and disabilities” for “rehabilitation and aging” in subdiv. (b)(1)(II).

Act No. 225 (Adj. Sess.) substituted “banking, insurance, and securities” for “banking and insurance” in subdiv. (b)(1)(C).

Act No. 250 added subdiv. (b)(2)(F).

Act No. 256 added “food and markets” following “agriculture” in subdiv. (b)(1)(B).

Act No. 277 increased salaries generally in subsec. (b), deleted subdiv. (b)(2)(B) and redesignated former subdivs. (b)(2)(C) through (b)(2)(E) as subdivs. (b)(2)(B) through (b)(2)(D) and increased salaries generally in subsec. (c).

—1989. Subsec. (a): Rewrote subdivs. (1)-(6).

Subsec. (b): Substituted “officers” for “any officer” following “granted to” in the fourth sentence of the introductory paragraph, increased salaries generally in subdivs. (1)(A)-(HH), added subdiv. (1)(II), and increased salaries generally in subdivs. (2)(A)-(E).

Subsec. (c): Increased salaries generally.

—1987 (Adj. Sess.) Subsec. (a): Increased salaries generally.

Subdiv. (b)(1): Increased salaries generally.

Subdiv. (b)(4): Added.

Subsec. (c): Amended generally.

—1987. Act No. 76 substituted “Natural resources” for “Environmental conservation” in subdiv. (b)(1)(K) and “Environmental conservation” for “Water resources and environmental engineering” in subdiv. (b)(1)(DD).

Act No. 121 rewrote subdivs. (b)(1) and (2) and increased the salaries provided for in subdivs. (c)(1)-(5).

—1985 (Adj. Sess.) Subsec. (a): Increased salaries generally.

Subsec. (b): Amended generally.

Subsec. (c): Increased salaries generally.

Subsec. (e): Repealed.

—1985. Subdiv. (b)(1)(V): Substituted “28,000.00” for “27,500.00”.

Subsec. (c): Increased salaries generally.

—1983 (Adj. Sess.) Subsec. (a): Act No. 243 increased salaries generally.

Subsec. (b): Act No. 243 substituted “forty” for “thirty” preceding “percent” in the first sentence.

Subdiv. (b)(1): Act No. 158 substituted “Fish and wildlife” for “Fish and game” in subdiv. (M).

Act No. 195 substituted “Finance and information support” for “Finance” in subdiv. (L).

Act No. 243 increased salaries generally.

Subdiv. (b)(2): Act No. 130 added subdiv. (J).

Act No. 170 repealed subdiv. (D).

Act No. 243 increased salaries generally, deleted former subdiv. (D) and redesignated former subdivs. (E)-(I) as present subdivs. (D)-(H).

Subsec. (c): Act No. 243 increased salaries generally.

Subsec. (d): Act No. 243 deleted “provided, however, that the incumbent defender general may receive $32,500.00 until such time as the attorney general’s compensation is increased effective January, 1983, and, prior to that date, may receive a salary increase as authorized in subsection (b)” following “section”.

—1983. Act No. 88 made the following change:

Subsec. (c): Increased salaries generally.

Act No. 95 made the following change:

Subsec. (e): Added.

—1981 (Adj. Sess.) Subsec. (a): Salaries were increased.

Subsec. (b): Amended generally by deleting maximum salary column in the table, adding provisions relative to base salary, and increasing such salary base.

Subsec. (c): Increased salaries.

Subsec. (d): Added “and prior to that date, may receive a salary increase as authorized in subsection (b)” at the end of the subsection.

—1981. Subsec. (a): Increased salaries.

Subsec. (c): Increased salaries.

Subsec. (d): Added.

—1979 (Adj. Sess.) Subsec. (c): Increased salaries.

—1979. Subsec. (a): Salary of each officer increased.

Subsec. (b): Increased base salary; established maximum salary for positions; and provided for gubernatorial salary adjustments subject to maximum salary range and the adjustment available to classified employees under the collective bargaining agreement.

Subsec. (c): Increased salaries.

—1977 (Adj. Sess.) Subsec. (a): No. 222, § 6, increased salary of each officer.

Subdiv. (b)(1): Salaries were increased by No. 222 for the following department heads: Housing and community affairs, economic development, finance, personnel, veterans’ home, taxes and defender general.

Subdiv. (b)(2): No. 222 increased salary for State buildings director in par. (C); deleted par. (D), property valuation and review; and renumbered former (E) as (D).

Subdiv. (b)(2)(E): Added by No. 204.

Subsec. (c): No. 222 increased salary for each officer.

Subdiv. (c)(6): No. 232 increased salary from “$29,000.00” to “$30,740.00”.

—1977. Subdiv. (b)(2)(D): Added by Act No. 105.

No. 109, § 15, changed all base salaries and in subdivs. (c)(2), (4) and (6) the word “each” was substituted for the number.

—1975 (Adj. Sess.) Subsec. (b): Amended generally by Act No. 196.

Subdiv. (c)(4): Act No. 206, increased number of superior judges from “six” to “seven”.

—1975 (Sp. Sess.) Subsec. (b): Amended Governor’s powers relative to granting salary adjustments.

—1973 (Adj. Sess.) Subsec. (a): Numbered undesignated paragraphs and increased salaries.

Subsec. (c): No. 159 increased number of superior judges from “five” to “six” and district judges from “nine” to “ten”.

No. 266 numbered undesignated paragraphs and increased salaries.

—1973. Subsecs. (a), (c): Increased salaries.

—1971 (Adj. Sess.) Subsec. (b): No. 191 amended opening paragraph generally.

No. 242 increased salary in subdiv. (b)(1)(T).

No. 191 repealed subdiv. (b)(3).

—1969 (Adj. Sess.) Increased salaries generally.

—1967. Subsec. (a): Increased salaries generally with limitations on raises.

Subdiv. (b)(1): Amended section generally adding provisions relating to base salary and merit raises, and raised salaries with limitation on raises.

Subdiv. (b)(2): Present subsec. (b)(2) was formerly (b)(3), raised salaries with limitation on raises, omitted “Planning director”.

Subdiv. (b)(3): Present subsec. (b)(3) was formerly (b)(2); omitted “fish and game”, “adjutant general”; added “military” and “water resources”; raised salaries with limitations on raises.

Subsec. (c): No. 126, § 1 increased salaries.

Rate of adjustment; Fiscal Years 2015 and 2016. 2013, No. 160 (Adj. Sess.), § 2 provides: “For purposes of determining annual salary adjustments, special salary increases, and bonuses under 32 V.S.A. §§ 1003(b) and 1020(b), ‘the total rate of adjustment available to classified employees under the collective bargaining agreement’ shall be deemed to be 3.3 percent in fiscal years 2015 and 2016.”

Rate of adjustment; Fiscal Years 2017 and 2018. 2015, No. 172 (Adj. Sess.), § F2 provides: “For purposes of determining annual salary adjustments, special salary increases, and bonuses under 32 V.S.A. §§ 1003(b) and 1020(b), “the total rate of adjustment available to classified employees under the collective bargaining agreement’ shall be 3.7 percent in fiscal year 2017 and 3.95 percent in fiscal year 2018.”

Rate of adjustment; Fiscal Years 2019 and 2020. 2017, No. 191 (Adj. Sess.), § 2 provides: “For purposes of determining annual salary adjustments, special salary increases, and bonuses under 32 V.S.A. §§ 1003(b) and 1020(b), “the total rate of adjustment available to classified employees under the collective bargaining agreement’ shall be the fiscal equivalent of compensation increases provided in the collective bargaining agreement, which is as follows:

“(1) In Fiscal Year 2019, 2.575 percent.

“(2) In Fiscal Year 2020, 3.25 percent.”

Collective bargaining agreements; fiscal year 2022. 2021, No. 74 , § F.100 provides: “This act fully funds the collective bargaining agreements between the State and the Vermont State Employees’ Association and the State and the Vermont Troopers’ Association for the period of July 1, 2021 through June 30, 2022. These collective bargaining agreements provide in fiscal year 2022 an average 1.9 percent step increase and 2.25 percent across-the-board increase for a total of 4.15 percent increase.”

Executive branch; exempt agency and department heads, deputies, and executive assistants; annual salary adjustment and special salary increase or bonus. 2021, No. 74 , § F.102 provides: “For purposes of determining annual salary adjustments, special salary increases, and bonuses under 32 V.S.A. §§ 1003(b) and 1020(b), ‘the average rate of adjustment available to classified employees under the collective bargaining agreement’ shall be, in fiscal year 2022, 4.15 percent.”

Fiscal year 2021; one-time payments authorized. 2021, No. 74 , § F.112 provides: “(a) The Executive Branch is authorized to provide elected State officials whose salaries are set pursuant to 32 V.S.A. § 1003 (State officers), who did not otherwise receive a salary increase in fiscal year 2021, a one-time cash payment equivalent to the value of a 1.9 percent increase on their fiscal year 2020 salary.

“(b) The Judicial Branch is authorized to provide judicial officers whose salaries are set pursuant to 32 V.S.A. §§ 1003 and 1141-1142, who did not otherwise receive a salary increase in fiscal year 2021, a one-time cash payment equivalent to the value of a 1.9 percent increase on their fiscal year 2020 salary.”

Notes to Opinions

Effective date.

The classification and compensation plan of April 15, 1967, takes effect in its entirety on Jan. 1, 1967. 1966-68 Vt. Op. Att'y Gen. 145.

Pay increase.

For the proper method of computing the so-called retroactive pay to which a promoted classified employee is entitled under the classification and compensation plan of April 15, 1967, see 1966-68 Vt. Op. Att'y Gen. 145.

Employees separated from service between Jan. 1, and April 15, 1967, are not entitled to receive retroactive pay adjustments reflecting the higher rates for the positions they occupied while they were in the State service. 1966-68 Vt. Op. Att'y Gen. 145.

§ 1004. Repealed. 1965, No. 125, § 23, eff. July 2, 1965.

History

Former § 1004. Former § 1004, which was formerly § 1002, relating to salary ranges, was derived from 1961, No. 285 , § 2; 1957, No. 298 , § 4; 1955, No. 277 , § 1; 1953, No. 253 , § 2; 1951, No. 227 , § 2; 1949, No. 255 , § 2; 1949, No. 189 , § 11; V.S. 1947, § 10,422; 1947, No. 176 , § 2; 1947, No. 163 , § 4; 1947, No. 4 , § 2; 1945, No. 184 , § 2.

Prior law.

V.S. 1947, §§ 10,429 and 10,430, derived from 1947, No. 187 , §§ 4 and 8, respectively, were repealed by 1951, No. 227 , § 2.

§ 1005. Repealed. 1985, No. 225 (Adj. Sess.), § 21.

History

Former § 1005. Former § 1005, relating to Governor’s expenses on official business, was derived from V.S. 1947, § 10,423; 1947, No. 202 , § 9949; P.L. § 8892; 1929, No. 136 ; 1919, No.244; G.L. § 7338; 1917, No. 245 ; 1917, No. 254 , § 7109; 1915, No. 224 , § 1; 1908, No. 182 ; 1908, No. 193 , § 1; P.S. § 6140; 1898, No. 129 , § 1; V.S. § 5316; 1884, No. 161 ; R.L. § 4468; G.S. 126, § 1.

§ 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.

HISTORY: 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.

History

Source.

1955, No. 277 , § 7. 1953, No. 253 , § 3. 1951, No. 288 , § 8. V.S. 1947, § 10,424. 1947, No. 177 , § 1. 1945, No. 184 , § 3. P.L. § 8894. 1921, No. 15 , § 1. G.L. § 7388. 1915, No. 233 . P.S. § 6188. 1898, No. 130 , § 2. V.S. § 5344. 1886, No. 112 , § 3.

Amendments

—1981 (Adj. Sess.) Substituted “weekly compensation” for “$229.00 a week” following “executive clerk shall be paid”.

—1981. Salary of executive clerk increased from “$210.00” to “$229.00”.

—1979 (Adj. Sess.) Increased executive clerk’s compensation to “$210.00” from “$165.00” a week and provided that the executive messenger shall be paid the same compensation and reimbursement for expenses as pages of the general assembly under section 64 of Title 2.

—1973. Provided expenses for executive messenger.

—1966. Increased salary of executive clerk from $125 to $165 a week, substituted general reference to “expenses” for former mileage allowance and increased salary of executive messenger from $45 to $60 a week.

—1963. Compensation for the executive clerk was changed from “$2,500.00 for the biennial term” to “$125.00 a week plus eight cents per mile for travel each way each week between his residence and Montpelier” and the compensation for the executive messenger was changed from “$800.00 for the biennial session” to “$45.00 a week” during a session.

§ 1007. Lieutenant Governor.

  1. 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.
  2. 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.

HISTORY: Amended 1961, No. 285 , § 3; 1969, No. 86 , § 2.

History

Source.

Subsec. (a): 1955, No. 277 , § 8. 1953, No. 253 , § 4. 1951, No. 228 , § 1. V.S. 1947, § 10,425. 1947, No. 179 , § 4. 1947, No. 178 , § 1. 1945, No. 185 , § 3. 1937, No. 219 , § 1. P.L. § 8895. 1921, No. 233 , §§ 1, 2. G.L. § 7378. 1908, No. 190 . P.S. § 6179 V.S. § 5336. R.L. § 4481. 1866, No. 70 , §§ 1, 2.

Subsec. (b): V.S. 1947, § 10,426. 1947, No. 202 , § 9952. P.L. § 8896. 1933, No. 157 , § 8534. 1931, No. 11 , § 1. 1925, No. 27 , § 3. 1923, No. 30 , § 5. 1921, No. 12 , § 1. G.L. §§ 264, 280, 320, 321, 999, 1000. 1917, No. 254 , §§ 266, 282, 968. 1917, No. 13 , § 3. 1915, No. 1 , § 42. 1915, No. 7 , § 8. 1912, No. 51 , § 6. P.S. §§ 220, 255, 256, 711, 712. 1904, No. 29 , § 3. 1902, No. 20 , §§ 17, 38. V.S. §§ 170, 188, 189, 561. R.L. § 113. 1892, No. 6 , § 1. 1890, No. 3 , § 16. 1884, No. 156 , §§ 1, 2. 1880, No. 136 , § 3. G.S. 1, §§ 60, 63, 64. R.S. 1, §§ 57, 60, 61. 1824, pp. 4, 7, §§ 2, 9 and amended by 1961, No. 285 , § 3 and 1969, No. 86 , § 2.

Amendments

—1969. Original section designated as subsec. (a).

Subsec. (b): Added.

—1961. Deleted provisions for salary, per diem, and mileage; the salary is now covered by § 1003 of this title.

Allocation of expenses. 2007, No. 192 (Adj. Sess.), § 5.904 repealed 1969, No. 86 , § 3, eff. Jan. 1, 1969 which had provided for payment of the Lieutenant Governor’s expenses from appropriations for legislative expenses.

§ 1008. Repealed. 1985, No. 225 (Adj. Sess.), § 21.

History

Former § 1008. Former § 1008, relating to the Secretary of Civil and Military Affairs, was derived from 1955, No. 165 , § 2.

§ 1009. Repealed. 1961, No. 285, § 5, eff. Aug. 1, 1961.

History

Former § 1009. Former § 1009, which was formerly § 1007, relating to certain commissioners, was derived from 1955, No. 277 , § 2.

§ 1010. Members of certain boards.

  1. 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 $50.00 in per diem compensation:
    1. Board of Bar Examiners
    2. Board of Libraries
    3. Vermont Milk Commission
    4. Board of Education
    5. State Board of Health
    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
    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 in the amount of $50.00 per day for each day devoted to official duties. This subsection shall not reduce the amount of per diem compensation provided by act of the General Assembly to members of boards or commissions entitled to receive more than $50.00 per day. (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 in the amount of $50.00 per day for each day devoted to official duties. This subsection shall not reduce the amount of per diem compensation provided by act of the General Assembly to members of boards or commissions entitled to receive more than $50.00 per day.
    2. “Per diem” means the amount of compensation to which a member of a statutory board or commission is entitled for:
      1. attendance at a regular or special meeting of such board or commission or any committee thereof; or
      2. 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.
  2. 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.
  3. 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.
  4. The Governor may authorize per diem compensation and expense reimbursement in accordance with this section for members of boards and commissions, including temporary study commissions, created by Executive Order.
  5. Members of the Parole Board shall be entitled to receive $100.00 per diem for each day of official duties together with reimbursement of reasonable expenses incurred in the performance of their duties.

HISTORY: 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.

History

Source.

V.S. 1947, § 10,431. 1947, No. 112 , § 2. 1947, No. 115 , § 2. 1947, No. 187 , §§ 2, 6. 1947, No. 110 , § 1. 1947, No. 83 , § 3. 1945, No. 187 , § 1.

Amendments

—2019 (Adj. Sess.). Subdiv. (a)(18): Repealed.

—2019. Section amended generally.

—2018 (Sp. Sess.). Subdiv. (a)(7): Substituted “Board of Liquor and Lottery” for “Liquor Control Board”.

—2013. Subsec. (b): Substituted “act of the General Assembly” for “statute” twice.

—2011 (Adj. Sess.). Subsec. (e): Deleted the last sentence.

—2009 (Adj. Sess.) Subsec. (a): Deleted former subdivs. (8), (10), (13), (14), (18), (20)-(22), (25), (27), (29), and (31) and redesignated the remaining subdivs. as subdivs. (9)-(20), and in present subdiv. (19), substituted “emergency personnel” for “firefighters”.

—2005. Subsec. (f): Substituted “$100.00 per diem” for “$80.00 per diem”.

—2003 (Adj. Sess.). Subdiv. (a)(31): Added.

—2001 (Adj. Sess.). Subdiv. (a)(29): Added.

Subdiv. (a)(30): Act No. 149 purported to add a subdiv. “(a)(29)”, which was redesignated as subdiv. “(30)” to avoid conflict with subdiv. (29) added by Act No. 119.

—1999. Subdiv. (a)(8): Repealed.

Subsec. (f): Added.

—1997 (Adj. Sess.). Subsec. (e): Act No. 66 substituted “a list of all such boards and commissions that are authorized to receive per diem compensation” for “on the use of such funds”.

Subsec. (a): Act No. 145 extensively revised the list of boards.

—1997. Subdiv. (a)(27): Deleted “or serve on the appeals panel” following “state”.

Subdiv. (a)(42): Deleted “or serve on the special panel” following “regulation”.

Subdivs. (a)(43), (44): Added.

—1995 (Adj. Sess.) Subdiv. (a)(42): Added.

—1993 (Adj. Sess.) Subdiv. (a)(41): Added.

—1991 (Adj. Sess.) Subdiv. (a)(40): Added.

—1991. Subdiv. (a)(3): Substituted “Vermont milk commission” for “Milk control board”.

—1989 (Adj. Sess.) Subdiv. (a)(37): Added by Act Nos. 253, 264 and 288.

—1987 (Adj. Sess.) Subsec. (a): Amended generally by Act No. 183.

Act Nos. 229 and 274 added subdiv. (37).

Subsec. (e): Added by Act No. 243.

—1987. Subdiv. (a)(33): Added by Act Nos. 96 and 121.

Subdiv. (a)(34): Added by Act No. 96.

Subdiv. (a)(35): Added by Act No. 96.

Subsec. (b): Amended generally by Act No. 94.

Subsec. (d): Added by Act No. 94.

—1985 (Adj. Sess.). Act No. 242 substituted “$50.00” for “$30.00” in the introductory paragraph of subsec. (a), added present subsec. (b), redesignated former subsec. (b) as present subsec. (c) and inserted “ex officio” following “serving” in that subsection.

Subdiv. (a)(27): Added by Act Nos. 248, 257 and 269.

Subdiv. (a)(28): Added by Act Nos. 245, 249 and 257.

—1985. Subdiv. (a)(26): Added.

—1983 (Adj. Sess.). Subdiv. (a)(14): Act No. 158 substituted “fish and wildlife” for “fish and game”.

Subdiv. (a)(22): Act No. 230 substituted “Board of radiological technology” for “Radiological technology advisory board”.

Subdiv. (a)(25): Added by Act No. 188.

—1981 (Adj. Sess.). Subsec. (a): Act No. 249 increased compensation of the members of boards to $30.00 per diem and deleted former exception relating to per diem compensation of members of parole board.

Subdiv. (24): Added by Act No. 240.

—1981. Subdiv. (a)(23): Added.

—1973 (Adj. Sess.) Subsec. (a): Subdiv. (a)(20) was added by No. 154, § 5, and was repealed by No. 266, § 27.

Subsec. (a) was amended generally by No. 174, § 1, and was repealed by No. 266, § 27.

Act No. 258 added subsec. (20) Radiological technology advisory board; renumbered as subsec. (22).

Act No. 266, § 17, provided for $30.00 per diem for parole board and added subsec. (a)(20) Board of opticians and (21) Boxing board.

—1973. Numbered undesignated paragraphs and added paragraph (10) human services board.

—1969 (Adj. Sess.) Designated original two paragraphs as subsecs. (a) and (b) and substituted “board of libraries” for “free public library board”.

—1967 (Adj. Sess.) Rephrased section; “board of institutions” changed to “board of corrections”.

—1967. Added “state recreation board”.

—1964. In opening sentence, provided exception relating to members ex officio or otherwise regularly employed by the state and added sentence providing for actual and necessary expenses.

Notes to Opinions

Construction with other laws.

Section does not give per diem members of Liquor Control Board unlimited expenses but only gives them expenses subject to limitations imposed by V.S. 1947 § 10,484 (former § 1263 of this title). 1948-50 Vt. Op. Att'y Gen. 159.

Dual capacity.

Clerk of county court is regularly employed and hence is not entitled to per diem compensation as a member of the Fish and Game Board. 1962-64 Vt. Op. Att'y Gen. 180.

Earned pay.

No one has ever contended that he was entitled to “per diem” merely by reason of being a member of a board or commission, rather the claim is made as a result of actually performing commission or board duties which would include attendance at meetings. 1962-64 Vt. Op. Att'y Gen. 149.

§ 1011. Repealed. 1971, No. 191 (Adj. Sess.), § 16.

History

Former § 1011. Former § 1011, relating to compensation of district commissioners, was derived from V.S. 1947, § 10,432; 1947, No. 202 , § 9956; P.L. § 8912; 1921, No. 123 , § 6; G.L. § 4585; 1917, No. 58 ; 1917, No. 124 ; 1908, No. 97 , § 1; P.S. § 4004; 1906, No. 111 , § 3.

§ 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.

HISTORY: 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.

History

Source.

1955, No. 265 . V.S. 1947, § 10,433. 1947, No. 202 , § 9957. P.L. § 8916. 1923, No. 8 , § 10. 1921, No. 229 . G.L. § 7372. 1908, No. 116 , § 21. P.S. § 6172. 1906, No. 126 , §§ 6, 28. 1902, No. 68 , § 11. 1898, No. 132 , § 1. 1896, No. 123 , §§ 1, 3. V.S. § 5332. 1886, No. 23 , § 15. 1884, No. 48 , § 2. R.L. §§ 3491, 3492. G.S. 28, § 129. 1855, No. 26 , § 9.

Revision note

—2017. In the section heading and in two places in the text of the section, substituted “Public Utility Commission” for “Public Service Board” and substituted “Commission” for “Board” in two places in the text of the section in accordance with 2017, No. 53 , § 12.

Amendments

—2015. Section amended generally.

—1995 (Adj. Sess.) Act No. 182, § 26, substituted “two-thirds” for “50 percent” following “equal to” in the second sentence.

Act No. 182, § 26a, substituted “50 percent” for “two-thirds” following “equal to” in the second sentence. However, this amendment was repealed. See note below.

1995, No. 182 (Adj. Sess.), § 28, had provided that the amendment to this section by § 26a of the act would take effect on July 1, 1998. However, 1997, No. 155 (Adj. Sess.), § 9, repealed 1995, No. 182 (Adj. Sess.), § 26a.

—1987. Section amended generally.

—1979 (Adj. Sess.) Act No. 141 substituted the figure “$15,000.00” for “$10,600.00”.

Act No. 204 increased annual salary of each member of the public service board, except the chairman, from “$10,600.00” to “$15,000.00” and provided that the chairman’s salary shall be the same as fixed for superior court judges.

—1977 (Adj. Sess.) Increased salary from $10,000 to $10,600.

—1973 (Adj. Sess.) Increased salary from $4,000.00 to $10,000.00.

—1969 (Adj. Sess.) Increased salary from $3,500.00 to $4,000.00.

—1967. Increased salary from $2,500.00 to $3,500.00.

—1959 (Adj. Sess.) Substituted public service “board” and “board” for public service “commission” and “commissioners”.

§§ 1013, 1014. Repealed. 1971, No. 191 (Adj. Sess.), § 16.

History

Former §§ 1013, 1014. Former § 1013, relating to compensation of motor vehicle inspectors, was derived from V.S. 1947, § 10,434; P.L. § 8921; 1931, No. 73 , § 1; 1927, No. 71 , § 1; 1925, No. 70 , § 11.

Former § 1014, relating to annual salary of the Legislative Reference Librarian, was derived from V.S. 1947, § 10,435; 1947, No. 202 , § 9059; P.L. § 8924; G.L. §§ 344, 7355; 1917, No. 32 , § 5; 1917, No. 253 , § 2; 1917, No. 254 , § 346; 1915, No. 10 , § 5; 1912, No. 14 , § 6; 1908, Nos. 187, 410; P.S. §§ 6157, 6158; 1906, No. 204 , § 1; R. 1906, § 6026; 1896, No. 118 , § 1; 1896, No. 119 , § 1; V.S. §§ 5326, 5327; 1882, No. 109 , § 2; R.L. §§ 4476, 4477; 1880, No. 141 , §§ 2, 4.

§§ 1015-1017. Repealed. 1985, No. 225 (Adj. Sess.), § 21.

History

Former §§ 1015-1017. Former § 1015, relating to annual salary of reporter of decisions, was derived from 1953, No. 154 ; V.S. 1947, § 10,436; 1947, No. 202 , § 9960; 1945, No. 184 , § 4; P.L. § 8926; 1921, No. 231 , § 1: G.L. § 7376; P.S. § 6177; 1904, No. 164 ; § 1: V.S. § 5334; R.L. § 4480; 1871 No. 128, § 5; 1870, No. 1 , § 18 and amended by 1959, No. 225 .

Former § 1016, relating to annual salary or wage of officers and employees at State institutions, was derived from V.S. 1947, § 10, 451; P.L. § 8945; 1933, No. 157 , § 8584; 1923, No. 149 , § 1; 1923, No. 148 ; 1919, No. 211 ; §§ 2, 3; G.L. §§ 7396, 7397, 7398; 1917, No. 115 , § 2; 1912, No. 248 ; 1910, No. 242 ; P.S. §§ 6198, 6199, 6200; 1906, No. 207 , § 1; R. 1906, § 6067; 1904, No. 166 , § 1; 1898, No. 124 ; § 1; 1898, No. 133 , § 1, 2; V.S. §§ 5156, 5352-5355; R.L. §§ 4347, 4494-4497; 1880, No. 10 , § 1; 1880, No. 138 , § 2; 1878, No. 136 , §§ 7, 8, 9; 1876, No. 5 , § 9 and amended by 1967, No. 319 (Adj. Sess.), § 4.

Former § 1017, relating to annual salary or wage of officers and employees at Kinstead home, was derived from V.S. 1947, § 10,452; P.L. § 8945; 1933, No. 157 , § 8584; 1923, No. 149 , § 1; 1923, No. 148 ; 1919, No. 211 , §§ 2, 3; G.L. §§ 7396, 7397, 7398; 1917, No. 115 , § 2; 1912, No. 248 ; 1910, No. 242 ; P.S. §§ 6198, 6199, 6200; 1906, No. 207 , § 1; R. 1906, § 6067; 1904, No. 106 , § 1; 1898, No. 124 , § 1; 1898, No. 133 , §§ 1, 2; V.S. §§ 5186, 5352-5355; R.L. §§ 4347, 4494-4497; 1880, No. 10 , § 1; 1880, No. 135 , § 2; 1878, No. 136 , §§ 7, 8, 9; 1876, No. 5 , § 9.

§ 1018. Chair and Executive Secretary of Transportation Board.

  1. The annual salary of the Chair of the Transportation Board shall be fixed by the Governor.
  2. 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.

HISTORY: Added 1975, No. 120 , § 2, eff. date set out in note below; amended 1977, No. 263 (Adj. Sess.), § 9, eff. April 19, 1978.

History

Revision note—

Section heading changed from “Appointment; salaries” to “Chairman and executive secretary of transportation board” to describe more clearly the context of section.

Amendments

—1977 (Adj. Sess.) Subsec. (a): Designated first sentence of existing section as subsec. (a).

Subsec. (b): Authorized hiring of Executive Secretary to the Board; and second sentence of existing section became last sentence in this subsection.

Prior law.

Former § 1018, which related to increments for appointed officials, was added by 1969, No. 294 (Adj. Sess.), § 11 and repealed by 1971, No. 191 (Adj. Sess.), § 16.

§ 1019. Repealed. 1971, No. 191 (Adj. Sess.), § 16.

History

Former § 1019. Former § 1019, which related to merit increases, was added by 1969, No. 294 (Adj. Sess.), § 12.

§ 1020. Salary adjustment; approval of Governor.

  1. 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.
    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. (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.
    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. (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.

HISTORY: 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. 1 96 (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.

History

Amendments

—2021. Section amended generally.

—1993 (Adj. Sess.) Subsec. (b): Inserted “or executive assistants” preceding “to department heads or are” and “deputies or” thereafter in the first sentence.

—1985 (Adj. Sess.) Designated existing provisions of section as subsec. (a) and rewrote subdiv. (3) of that subsection and added subsecs. (b) and (c).

—1979. Deleted reference to State employees’ compensation review board; provided for exempt employees who are deputies to department heads or executive assistants to agency secretaries; and amended salary adjustment provisions.

—1975 (Adj. Sess.) Subdiv. (3): Established that gubernatorial salary adjustments or merit increases cannot exceed those available to classified employees.

—1975 (Sp. Sess.) Subdiv. (a)(3): Inserted the words “at the time the officer or employee is hired” in the first sentence and added second sentence relative to granting salary adjustments.

—1973. Subsec. (a): Deleted reference to “judicial branches”.

—1971 (Adj. Sess.) Section amended generally.

Executive branch; exempt agency and department heads, deputies, and executive assistants; annual salary adjustment and special salary increase or bonus. 2021, No. 74 , § F.102 provides: “For purposes of determining annual salary adjustments, special salary increases, and bonuses under 32 V.S.A. §§ 1003(b) and 1020(b), ‘the average rate of adjustment available to classified employees under the collective bargaining agreement’ shall be, in fiscal year 2022, 4.15 percent.”

CROSS REFERENCES

Terms and limitations of collective bargaining agreements, see 3 V.S.A. § 982 .

Subchapter 2. General Assembly

§ 1051. Speaker of the House and President Pro Tempore of the Senate; compensation and expense reimbursement.

  1. 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.
  2. , (c)[Repealed.]

HISTORY: 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.

History

Source.

Subsec. (a): 1955, No. 277 , § 9. 1953, No. 253 , § 5. 1951, No. 228 , § 2. V.S. 1947, § 10,427. 1947, No. 179 , § 5. 1945, No. 185 , § 4. 1937, No. 219 , § 2. P.L. § 8897. 1921, No. 233 , § 1. G.L. § 7378. 1908, No. 190 . P.S. § 6179. V.S. § 5336. R.L. § 4481. 1866, No. 70 , §§ 1, 2.

Subsec. (b): V.S. 1947, § 10,428. P.L. § 8898. 1933, No. 157 , § 8536. 1921, No. 233 , § 1. G.L. §§ 264, 280, 320, 321, 7378. 1917, No. 254 , §§ 266, 282. 1917, No. 13 , § 3. 1915, No. 1 , § 42. 1915, No. 7 , § 8. 1908, No. 190 . P.S. §§ 220, 255, 256, 6179. V.S. §§ 170, 188, 189, 5336. R.L. §§ 113, 4481. 1892, No. 6 , § 1. 1884, No. 156 , §§ 1, 2. 1880, No. 136 , § 3. 1866, No. 70 , §§ 1, 2. G.S. 1, §§ 60, 63, 64. R.S. 1, §§ 57, 60, 61. 1824, p. 4, 7, §§ 2, 9.

Revision note—

1966, No. 53 , provided in § 2 “ 32 V.S.A. § 1051 is amended”. However the text of the amendment appeared to relate only to subsec. (a) and hence subsec. (b) was retained.

Amendments

—2019 (Adj. Sess.). Subsec. (a): Inserted “, 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 the first sentence of the introductory language; and inserted “, 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” in subdiv. (a)(1).

—2015 (Adj. Sess.). Subdiv. (a)(2): Amended generally.

Subdiv. (a)(3): Inserted “mileage,” preceding “meals,” and substituted “lodging” for “rooms” preceding “expenses”

—2015. Subsec. (a): Inserted “be entitled to” following “shall” in the first and second sentence.

—2011. Subsec. (b): Repealed.

—2005. Subsec. (a): Added the provisos in the first sentence of the introductory paragraph and in subdivs. (1) and (2).

—2003 (Adj. Sess.). Subsec. (a): Inserted “and the president pro tempore of the senate” and substituted “$10,080.00” for “$9,172.00” and “2005” for “1999” in the first sentence and inserted “and president pro tempore” following “speaker” in the second sentence of the introductory paragraph.

Subdiv. (a)(1): Substituted “$652.00” for “$593.00” and “2005” for “1999”.

Subdiv. (a)(2): Substituted “$130.00” for “$118.00” and “2005” for “1999”.

Subdiv. (a)(3): Substituted “biennial” for “regular” and made a minor change in punctuation.

Subsec. (c): Deleted.

—1997. Subsec. (a): Amended generally.

Subdiv. (c)(1): Substituted “$593.00 a week for the 1999 biennial session” for “$530.00 a week for the 1991 biennial session and $565.00 a week for the 1991 adjourned session” and “biweekly” for “semi-monthly” preceding “payments”.

Subdiv. (c)(2): Amended generally.

Subdiv. (c)(3): Substituted “$118” for “$105.00 a day for any day between the 1991 biennial and adjourned sessions and $112.00” and “1999 biennial” for “1991 adjourned”.

—1993 (Adj. Sess.) Substituted “semi-monthly” for “biweekly” preceding “payment” in the first sentence of the introductory paragraph of subsec. (a) and preceding “payments” in subdivs. (a)(1) and (c)(1).

—1989. Section amended generally.

—1987. Section amended generally.

—1985. Section amended generally.

—1983 (Adj. Sess.) Section amended generally.

—1981 (Adj. Sess.) Subsec. (a): Increased annual compensation from “$5,200.00” to “$5,850.00”.

Subdiv. (a)(1): Weekly compensation increased from “$275.00” to “$325.00” a week.

Subdiv. (a)(2): Special session compensation was increased from “$50.00” a day to “$65.00”.

Subsec. (c): Added.

—1979. Subdiv. (a)(1): Weekly compensation during regular and adjourned sessions increased to $ 275, effective January 7, 1981.

—1973 (Adj. Sess.) Section amended generally.

—1971 (Adj. Sess.) Subsec. (b): Increased per diem.

—1966. Subsec. (a): Increased salary from $150 to $250 per week and substituted reference to necessary expenses for former mileage allowance.

—1963. Subsec. (a): Changed weekly sum from $130 to $150 and mileage from 20 cents a mile each way to 8 cents a mile each way each week between residence and Montpelier, made the sums applicable to regular, adjourned, and special sessions, and deleted special compensation for special session.

Compensation of members beginning in the 1999 biennial session. 1997, No. 147 (Adj. Sess.), § 41, provided: “Beginning in the 1999 biennial session of the legislature, and in each biennial and adjourned session thereafter, the first installment payment of salary of members shall be made no later than the last day of the first week of the legislative session in an amount no less than one week’s salary. Thereafter, members shall be paid in biweekly installments as provided in 32 V.S.A. § 1051(a) and (c) and 32 V.S.A. § 1052(a) .”

§ 1052. Members of the General Assembly; compensation and expense reimbursement.

    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. (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.
  1. During any session of the General Assembly, each member is entitled to receive expenses as follows:
    1. Mileage reimbursement.   An allowance equal to the cost of one round-trip each day between Montpelier and the member’s home for each day of session in which the member did not rent lodging in Montpelier or the vicinity. If a member rents lodging in Montpelier or the vicinity for an entire week of session, the member is entitled to an allowance for the cost of one round-trip for that week between Montpelier and the member’s home. The allowance 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 and lodging allowance.   An allowance in an amount equal to the daily amount for meals and 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.
    3. 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 expenses received shall not include the amount that the legislator specifies was not incurred during the period of that absence.
    4. Intent.   It is the intent of the General Assembly that only a member who is away from home and remains in Montpelier or the vicinity on the night preceding or following the day in which that member’s chamber met shall receive reimbursement for expenses as provided in subdivision (1) of this subsection.
  2. 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.
  3. 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.

HISTORY: 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. 14 4 (Adj. Sess.), § 30.

History

Source.

Subsec. (a): 1955, No. 277 , § 3. 1953, No. 253 , § 6. 1951, No. 228 , § 3. V.S. 1947, § 10,437. 1947, No. 179 , § 1. 1945, No. 185 , § 1. P.L. § 8927. 1921, No. 233 , § 1. G.L. §§ 7378, 7391. 1908, No. 190 . P.S. §§ 6179, 6190. V.S. §§ 5336, 5346. R.L. §§ 4481, 4487. 1866, No. 70 , §§ 1, 2. 1862, No. 20 .

Subsec. (b): V.S. 1947, § 10,438. 1947, No. 179 , § 7. 1937, No. 219 , § 3. P.L. § 8928. 1921, No. 233 , § 2. G.L. § 7378. 1908, No. 190 . P.S. § 6179. V.S. § 5336. R.L. § 4481. 1866, No. 70 , §§ 1, 2.

Amendments

—2019 (Adj. Sess.). Subdiv. (a)(1): Act No. 120 inserted “, 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” in the first sentence.

Subdiv. (b)(3): Act No. 144 substituted “Office of Legislative Operations” for “Legislative Council staff” and substituted the second instance of “that” for “which”.

—2019. Subdivs. (b)(3) and (b)(4): Added subdiv. headings.

—2015 (Adj. Sess.). Subsec. (a): Added the (1) and (2) designations; inserted “of the House” following “Speaker” in subdiv. (a)(1); and substituted “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” for “$118.00 a day”.

—2005. Subsec. (a): Added the proviso in the first sentence.

—2003 (Adj. Sess.). Subsec. (a): Substituted “$589.00” for “$536.00” and “2005” for “1999” in the first sentence; made a minor change in punctuation and substituted “$118.00” for “$105.00” and “2005” for “1999” in the third sentence.

Subsec. (b): Rewrote subdivs. (1) and (2).

—1997. Subsec. (a): Amended generally.

—1993 (Adj. Sess.) Subsec. (a): Act No. 140 substituted “semi-monthly” for “biweekly” preceding “installments” in the second sentence.

Subdiv. (b)(4): Added by Act No. 227.

—1989. Subsec. (a): Amended generally.

—1987. Rewrote subsecs. (a) and (b).

—1985. Section amended generally.

—1983 (Adj. Sess.) Subsec. (a): Amended generally.

Subdiv. (b)(1): Substituted “$32.50” for “$27.50” preceding “for room and” and “$27.50” for “$22.50” thereafter.

Subdiv. (b)(2): Substituted “$23.75” for “$18.75” preceding “for meals”.

—1981 (Adj. Sess.) Subsec. (a): Added reference to the president pro tempore of the senate to exception in the first sentence; generally increased compensation for each member of the general assembly, and added provision that a member is not entitled to more than $9,500 for services at regular sessions, nor more than $2,000.00 for services at special sessions in any biennium.

Subdiv. (b)(1): Substituted “$27.50” for “$25.00” for room and “$22.50” for “$20.00” for meals.

Subdiv. (b)(2): Substituted “$18.75” for “$17.50” for meals.

Subdiv. (b)(3): Added.

Subsec. (d): Added.

—1979 (Adj. Sess.) Subdiv. (b)(1): Increased room and meal allowance.

—1979. Subsec. (a): Raised compensation and maximum entitlement, effective January 7, 1981.

Subsec. (b): Increased meal allowance to $ 17.50, effective January 7, 1981.

—1977. Increased rate of compensation and expenses for members of the general assembly.

—1975 (Adj. Sess.) Subsec. (a): Provided for a weekly payment to each member of the general assembly of $150 during the first week of a regular or adjourned session and biweekly payments thereafter.

—1973 (Adj. Sess.) Subsec. (b): No. 134 amended generally and included a per diem for room and meals.

No. 262 added provisions relating to meetings of joint fiscal committee.

—1973. Subdiv. (b)(3): Increased reimbursement for mileage.

—1969 (Adj. Sess.) Subsec. (b): Increased meals and rooms allowances.

—1967. Amended section generally, increased pay to $150.00 weekly while the general assembly is in session, but not more than $4,500.00 for services in any biennium.

—1966. Amended section generally increasing pay and allowances from former $80 per week and adding provisions for rooms and meals.

—1963. Changed weekly sums from $70 to $80 and mileage from 20 cents a mile each way to 8 cents a mile each way each week between residence and Montpelier, made provision applicable to regular, adjourned and special sessions, and deleted former subsec. (b) which provided compensation for special sessions.

Compensation of members beginning in the 1999 Biennial Session. 1997, No. 147 (Adj. Sess.), § 41, provided: “Beginning in the 1999 Biennial Session of the Legislature, and in each Biennial and Adjourned Session thereafter, the first installment payment of salary of members shall be made no later than the last day of the first week of the legislative session in an amount no less than one week’s salary. Thereafter, members shall be paid in biweekly installments as provided in 32 V.S.A. § 1051(a) and (c) and 32 V.S.A. § 1052(a) .”

CROSS REFERENCES

Group health insurance for members of General Assembly, see 3 V.S.A. § 635a .

Notes to Opinions

Earned pay.

There is no claim for per diem pay unless duties pertaining to the office have been actually performed and previous practice dictates that per diem refers to the number of days when services actually have been rendered. 1962-64 Vt. Op. Att'y Gen. 149.

§ 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.

HISTORY: 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.

History

Source.

1953, No. 253 , § 7. 1951, No. 228 , § 7. V.S. 1947, § 10,439. 1947, No. 179 , § 6. 1945, No. 185 , § 7. P.L. § 8929. 1933, No. 157 , § 8569. G.L. § 7379. 1915, No. 231 . 1910, No. 239 . P.S. § 6180. V.S. § 5337. 1892, No. 3 , § 2. 1888, No. 149 . R.L. § 4482. 1870, No. 95 , § 1.

Amendments

—2013. Substituted “The” for “For each week of each session, the”.

—1985 (Adj. Sess.) Section amended generally.

—1983 (Adj. Sess.) Subsec. (a): Increased maximum salaries for clerk of the house, first assistant clerk of the house, and secretary of the senate.

—1981 (Adj. Sess.) Subsec. (a): Increased maximum salary for clerk of house, secretary of the senate and assistant secretary of the senate.

—1981. Subsec. (a): Increased maximum salary.

—1979 (Adj. Sess.) Subsec. (a): Raised maximum salary levels by $50.

Subsec. (b): Deleted last sentence which read “However, the first adjustment of salaries shall be set by such committees before adjournment sine die, 1974, to be effective from the date of that action.”

—1979. Subsec. (a): Increased maximum salary for each officer.

—1973 (Adj. Sess.) Subsec. (a): Existing section designated as subsec. (a) and amended generally by increasing salary range; omitted reference to automatic increases and inserted reference to subsec. (b).

Subsec. (b): Added.

—1971. Added phrase “including service performed prior to the effective date of this section”.

—1969 (Adj. Sess.) Section amended generally.

—1965. Added in first sentence after the words “expenses and” the words “not more than” and after word “designated” the words “which compensation shall be fixed by the president pro tempore of the Senate and the speaker of the House”; increased weekly maximum compensation of secretary of Senate and clerk of House to $250, of assistant secretary of Senate and first assistant clerk of the House to $225 and of the second assistant clerk of the House to $200; added new subsecs. (a), (b), and (c).

—1963. Changed pay from a daily rate to a weekly rate and increased salaries generally.

—1961. Inserted “their necessary expenses and”.

§ 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.

HISTORY: 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.

History

Amendments

—2007. Substituted “$130.00 effective July 8, 2007” for “$115.00 effective July 4, 2002, $120.00 effective July 10, 2005, and $125.00 effective July 9, 2006” in the first sentence.

—2005. Deleted “$110.00 effective July 1, 2001 and” preceding “$115.00 effective July 4, 2002” and inserted “$120.00 effective July 10, 2005, and $125.00 effective July 9, 2006” in the first sentence.

—2003 (Adj. Sess.). Deleted “$110.00 effective July 1, 2001 and” preceding “$115.00”, inserted “the” preceding “Montpelier” and added “area” thereafter in the first sentence.

—2001. Substituted “$110.00 effective July 1, 2001 and $115.00 effective July 4, 2002” for “$104.80”.

—1999. Substituted “$104.80” for “$100.00” following “weekly compensation of”.

—1997. Deleted “notwithstanding any provision to the contrary” preceding “legislative pages” and substituted “$60.00” for “$50.00” and “$95.00” for “$85.00” in the first sentence.

—1993 (Adj. Sess.) Substituted “$100.00” for “$90.00” in the first sentence.

§ 1054. Repealed. 1965, No. 81, § 11, eff. July 1, 1965.

History

Former § 1054. Former § 1054, relating to legislative draftsmen, was derived from 1963, No. 205 , § 2; 1953, No. 253 , § 8; 1951, No. 227 , § 4; V.S. 1947, § 10,440; 1947, No. 180 , § 1; P.L. § 8934; 1933, No. 157 , § 8574; G.L. §§ 343, 348; 1917, No. 254 , § 350; 1915, No. 10 , §§ 1, 6; 1912, No. 14 , §§ 2, 7; 1910, No. 9 , § 2.

§§ 1055-1057. Repealed. 1977, No. 109, § 33(e), eff. July 3, 1977.

History

Former §§ 1055-1057. Former § 1055, relating to doorkeepers, was derived from 1955, No. 277 , § 4; 1953, No. 253 , § 9; 1951, No. 228 , § 4; V.S. 1947, § 10,441; 1947, No. 179 , § 2; 1945, No. 185 , § 2; P.L. § 8935; 1933, No. 157 , § 8575; 1921, No. 15 , § 1; G.L. § 414; 1917, No. 254 , § 407; 1912, No. 20 , § 3; P.S. § 316; 1904, No. 14 , § 1; 1902, No. 7 , § 1; V.S. § 234; 1886, No. 112 , § 1; R.L. § 171; 1878, No. 136 , § 10; G.S. 8, § 79; R.S. 8, § 56; 1838, No. 24 , § 3 and was amended by 1963, No. 129 , § 1; 1966, No. 53 (Sp. Sess.), § 5; 1967, No. 201 ; 1969, No. 303 (Adj. Sess.), § 4; 1973, No. 117 , § 3.

Former § 1056, relating to assistants to Sergeant at Arms, was derived from 1955, No. 277 , § 5. 1953, No. 253 , § 10. 1951, No. 228 , § 5. V.S. 1947, § 10,442. 1947, No. 179 , § 3. 1945, No. 185 , § 6. P.L. § 8936. 1933, No. 157 , § 8576. 1921, No. 15 , § 1. G.L. § 414. 1917, No. 254 , § 407. 1912, No. 20 , § 3. P.S. § 316. 1904, No. 14 , § 1. 1902, No. 7 , § 1. V.S. § 234. 1886, No. 112 , § 1. R.L. § 171. 1878, No. 136 , § 10. G.S. 8, § 79. R.S. 8, § 56. 1838, No. 24 , § 3 and was amended by 1965, No. 18 ; 1966, No. 53 (Sp. Sess.), § 6; 1969, No. 303 (Adj. Sess.), § 5; 1973, No. 117 , § 4.

Former § 1057, relating to messengers, was derived from 1955, No. 277 , § 6. 1953, No. 253 , § 11. 1951, No. 228 , § 6. V.S. 1947, § 10,443. 1945, No. 185 , § 5. P.L. § 8937. 1933, No. 157 , § 8577. 1921, No. 15 , § 1. G.L. § 414. 1917, No. 254 , § 407. 1912, No. 20 , § 3. P.S. § 316. 1904, No. 14 , § 1. 1902, No. 7 , § 1. V.S. § 234. 1886, No. 112 , § 1. R.L. § 171. 1878, No. 136 , § 10. G.S. 8, § 79. R.S. 8, § 56. 1838, No. 24 , § 3 and was amended by 1963, No. 115 , § 2; 1966, No. 53 (Sp. Sess.), § 7; 1969, No. 207 (Adj. Sess.), § 13; 1973, No. 117 , § 16.

§ 1058. Repealed. 1963, No. 129, § 2, eff. April 3, 1963.

History

Former § 1058. Former § 1058, relating to mileage allowance for attendance upon General Assembly, was derived from V.S. 1947, § 10,444; P.L. § 8938; 1933, No. 157 , § 8578; G.L. § 7390; 1915, No. 226 .

§ 1059. Repealed. 2009, No. 33, § 83(m)(6).

History

Former § 1059. Former § 1059, relating to report of a list of officers, members, and employees entitled to mileage and the amount due to each, was derived from V.S. 1947, § 10,445; 1937, No. 222 , § 1; P.L. § 8939. 1933, No. 157 , § 8579; G.L. § 7390; 1915, No. 226 .

§ 1060. Repealed. 1997, No. 150 (Adj. Sess.), § 22.

History

Former § 1060. Former § 1060, relating to mileage certificates, was derived from V.S. 1947, § 10,446. 1937, No. 222 , § 2. 1935, No. 206 , § 1; amended, 1959, No. 328 (Adj. Sess.), § 8; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 65, eff. June 13, 1988.

§ 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.

HISTORY: 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.

History

Source.

1953, No. 253 , § 12. V.S. 1947, § 10,447. P.L. § 8940. 1933, No. 157 , § 8580. G.L. § 7381. 1917, No. 254 , § 7152. 1910, No. 249 . 1908, No. 423 .

Amendments

—1977. Substituted “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” for “president pro tempore of the senate and in the case of the clerk of the house, with the approval of the speaker of the house of representatives” in the last sentence.

—1969 (Adj. Sess.). Changed compensation from $50 a day to one-fifth of the weekly salary to which each shall be entitled under § 1053 of this title.

—1965. Increased to $50 per day amount secretary of senate and clerk of the house of representatives may receive after close of session for additional services rendered.

—1963. Increased pay from $20.00 to $30.00 per day.

CROSS REFERENCES

Compensation of clerical assistants for preparation of journals, see 2 V.S.A. § 14 .

§ 1062. Omitted.

History

Former § 1062. Former § 1062, relating to compensation of engrossing clerk, was derived from V.S. 1947, § 10,448; 1947, No. 202 , § 9972; P.L. § 8941; 1931, No. 170 , § 1; G.L. §§ 321, 7383; P.S. §§ 256, 6183; V.S. §§ 189, 5340; 1890, No. 158 ; 1884, No. 156 , § 2; R.L. § 158; 1872, No. 74 , § 2; G.S. 2, § 5; 1850, No. 57 , § 3; R.S. 111, § 12; 1802, p. 108; 1800, p. 4.

Editor’s note—

As the statutory provisions that authorized the appointment of an engrossing clerk, 3 V.S.A. § 105 , were repealed, this section relating to the compensation of such clerk was omitted.

§ 1063. Repealed. 1979, No. 59, § 31(b).

History

Former § 1063. Former § 1063, relating to the legislative pay board, was derived from 1971, No. 191 (Adj. Sess.), § 19.

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.

HISTORY: Amended 1963, No. 193 , § 21, eff. June 28, 1963.

History

Source.

1953, No. 70 , § 2. V.S. 1947, § 10,453. 1939, No. 234 , § 1. P.L. § 8947. 1929, No. 113 , § 3. G.L. § 7362. P.S. § 6168. 1906, No. 165 , § 1. 1904, No. 133 , § 6.

Revision note—

References to “medical registration” were changed to “medical practice” in text and section heading pursuant to § 1364 of Title 26.

Editor’s note—

Subsec. 151(b) of Title 26 provides for a per diem payment to Board of Medical Practice members of $30.00 plus actual and necessary expenses.

Amendments

—1963. Salary was increased from “$10.00” to “$15.00”.

§§ 1102-1108. Repealed. 2005, No. 27, § 117(3).

History

Former §§ 1102-1108. Former § 1102, relating to per diems for members of the State Board of Osteopathic Registration, was derived from 1953, No. 70 , § 3; V.S. 1947, § 10,454; P.L. § 8948; G.L. § 7363;P.S. § 6167; 1906, No. 166 , § 1; 1904, No. 134 , § 10 and amended by 1963, No. 193 , § 24.

Former § 1103, relating to per diems and expense reimbursement for members of the Board of Dental Examiners, was derived from 1953, No. 70 , § 4; V.S. 1947, § 10,455; P.L. § 8949. 1931, No. 129 , § 8; G.L. § 7364; 1912, No. 210 , § 7. P.S. § 6169; 1904, No. 135 , § 4; 1898, No. 114 , § 3. V.S. § 4647; 1882, No. 118 , § 5 and amended by 1963, No. 193 , § 18, No. 81 , § 26.

Former § 1104, relating to per diems for members of the State Board of Optometry, was derived from 1953, No. 24 ; V.S. 1947, § 10,457; P.L. § 8951; G.L. § 7367; 1908, No. 152 , § 13 and amended by 1963, No. 193 , § 23.

Former § 1105, relating to per diems for members of the State Board of Chiropractic Examination and Registration, was derived from 1953, No. 70 , § 5; V.S. 1947, § 10,458; P.L. § 8952. 1921, No. 228 , § 1 and amended by 1963, No. 193 , § 17.

Former § 1106, relating to per diems for members of the State Board of Nursing, was derived from 1953, No. 70 , § 6; V.S. 1947, § 10,459; P.L. § 8953. G.L. § 7368; 1917, No. 254 , § 7139; 1910, No. 219 , § 6 and amended by 1963, No. 193 , § 22.

Former § 1107, relating to per diems for members of the Board of Funeral Service, was derived from 1951, No. 229 ; V.S. 1947, § 10,460; P.L. § 8954; G.L. § 7369; 1917, No. 254 , § 7140; 1910, No. 216 , § 11 and amended by 1963, No. 193 , § 20.

Former § 1108, relating to per diems for members of the State Veterinary Board, was derived from 1953, No. 70 , § 7; V.S. 1947, § 10,461; P.L. § 8955. G.L. § 7370; 1917, No. 254 , § 7141; 1912; No. 213, § 10 and amended by 1963, No. 193 , § 25.

§ 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.

History

Source.

V.S. 1947, § 10,462. P.L. § 8956. 1933, No. 157 , § 8595.

References in text.

The reference to §§ 1102-1108, referred to in this section, were repealed by 2005, No. 27 , § 117(3).

§ 1110. Repealed. 1987, No. 243 (Adj. Sess.), § 66, eff. June 13, 1988.

History

Former § 1110. Former § 1110, relating to limitation of expenses of State Boards, was derived from V.S. 1947, § 10,463; P.L. § 8947; 1931, No. 129 , § 9; G.L. § 7365; P.S. § 6170; 1906, No. 165 , § 1; 1966, No. 166 , § 1; 1904, No. 135 , § 4; 1904, No. 134 , § 10; 1904, No. 133 , § 6; V.S. § 4666; 1894, No. 99 , § 15 and amended by 1959, No. 328 (Adj. Sess.), § 8; 1983, No. 195 (Adj. Sess.), § 5(b).

§ 1111. Exemption from licensing renewal fees; persons 80 years of age and over.

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.]

HISTORY: Added 1991, No. 167 (Adj. Sess.), § 62a; amended 2019, No. 131 (Adj. Sess.), § 293.

History

Revision note

—2021. In subdiv. (2), substituted “26 V.S.A. chapter 109” for “31 V.S.A. chapter 21” in accordance with 2021, No. 69 , §§ 16(a) and 17 and to avoid conflict with 2021, No. 69 , § 10.

Amendments

—2019 (Adj. Sess.). Section heading: Substituted “80 years of age and over” for “over 80”.

Subdiv. (2): Substituted “chapter 21” for “chapter 3 of Title 31”.

Subdiv. (3): Repealed.

Subchapter 4. Judges and Court Appointees

History

Fiscal year 2021; one-time payments authorized. 2021, No. 74 , § F.112(b) provides: “The Judicial Branch is authorized to provide judicial officers whose salaries are set pursuant to 32 V.S.A. §§ 1003 and 1141-1142, who did not otherwise receive a salary increase in fiscal year 2021, a one-time cash payment equivalent to the value of a 1.9 percent increase on their fiscal year 2020 salary.”

§ 1141. Assistant judges.

    1. Each assistant judge of the Superior Court shall be entitled to receive compensation in the amount of $185.86 a day as of January 5, 2020 and $193.57 a day as of July 4, 2021 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. (a) (1) Each assistant judge of the Superior Court shall be entitled to receive compensation in the amount of $185.86 a day as of January 5, 2020 and $193.57 a day as of July 4, 2021 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.
      1. 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). (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).
      2. 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.
  1. 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.

HISTORY: 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.

History

Source.

Subsec. (a): 1957, No. 159 . 1951, No. 230 . V.S. 1947, § 10,465. 1945, No. 189 , § 6. P.L. § 8961. 1929, No. 138 , § 1. 1919, No. 94 , § 1. G.L. § 7401. P.S. § 6204. V.S. § 5357. R.L. § 4499. G.S. 126, § 18.

Subsec. (b): V.S. 1947, § 10,466. P.L. § 8962. G.L. § 7399. 1917, No. 254 , § 7173. 1915, No. 1 , § 199. 1908, No. 178 , §§ 5, 8. P.S. § 6203. V.S. § 5356. R.L. § 4498. 1878, No. 38 , § 1.

Amendments

—2021. Subdiv. (a)(1): Deleted “$183.38 a day as of July 7, 2019 and” following “in the amount of” and inserted “and $193.57 a day as of July 4, 2021”.

—2017 (Adj. Sess.). Subdiv. (a)(1): Act 191, § 6 substituted “$177.56 a day as of July 8, 2018 and $179.96 a day as of January 6, 2019” for “$167.63 a day as of July 10, 2016 and $174.25 a day as of July 09, 2017”.

Subdiv. (a)(1): Act 191, § 9 substituted “$183.38 a day as of July 7, 2019 and $185.86 a day as of January 5, 2020” for “$177.56 day as of July 8, 2018 and $179.96 a day as of January 6, 2019”.

—2015 (Adj. Sess.). Subdiv. (a)(1): Substituted “$167.63 a day as of July 10, 2016 and $174.25 a day as of July 09, 2017” for “$156.49 a day as of July 13, 2014 and $161.65 a day as of July 12, 2015”.

—2015. Subdiv. (a)(1): Substituted “Each” for “The compensation of each” and inserted “entitled to receive compensation in the amount of” preceding “$156.49” in the first sentence.

Subsec. (b): Inserted “be entitled to” following “Assistant judges of the Superior Court shall”.

—2013 (Adj. Sess.). Subdiv. (a)(1): Substituted “$156.49 a day as of July 13, 2014 and $161.65 a day as of July 12, 2015” for “$146.09 a day as of July 1, 2012 and $151.49 a day as of July 14, 2013” following “Superior Court shall”.

—2011 (Adj. Sess.) Subdiv. (a)(1): Substituted “$146.09 a day as of July 1, 2012 and $151.49 a day as of July 14, 2013” for “$142.04 a day as of July 8, 2007” in the first sentence.

—2009 (Adj. Sess.) Deleted “of superior courts” following “judges” in the section heading, and rewrote subsec. (a).

—2007. Subsec. (a): Deleted “$126.04 a day as of July 11, 2004, $131.06 a day as of July 10, 2005, and” preceding “$136.28 a day” and added “and $142.04 a day as of July 8, 2007” preceding “for time spent” in the first sentence.

—2005. Subsec. (a): Rewrote the first sentence and added the second sentence.

—2003 (Adj. Sess.). Subsec. (a): Substituted “compensation at the daily rate of $126.04 a day as of July 11, 2004” for “$120.64 a day as of July 13, 2003”.

—2003. Subsec. (a): Substituted “$120.64 a day as of July 13, 2003” for “$111.22 a day as of July 1, 2001, $113.22 a day as of January 13, 2002, and $118.86 a day as of July 14, 2002”.

—2001. Subsec. (a): Substituted “$111.22 a day as of July 1, 2001, $113.22 a day as of January 13, 2002, and $118.86 a day as of July 14, 2002” for “$105.14 a day as of July 14, 1999 and $110.18 a day as of July 2, 2000 and thereafter”.

—1999. Subsec. (a): Substituted “$105.14 a day as of July 4, 1999 and $110.18 a day as of July 2, 2000 and thereafter” for “$92.00 a day as of January 6, 1997, and $95.76 a day as of January 4, 1998, and $100.32 a day as of July 5, 1998”.

—1997. Subsec. (a): Deleted “$89.00 a day as of January 6, 1996, and” preceding “$92.00” and inserted “and $95.76 a day as of January 4, 1998, and $100.32 a day as of July 5, 1998” following “1997”.

—1995 (Adj. Sess.) Subsec. (a): Deleted “$85.00 a day as of January 6, 1995, and” preceding “$89.00 a day” and inserted “and $92.00 a day as of January 6, 1997” following “as of January 6, 1996”.

—1993 (Adj. Sess.) Subsec. (a): Substituted “$85.00 a day as of January 6, 1995, and $89.00 a day as of January 6, 1996” for “$79.00 a day as of July 1, 1992, and $82.00 a day as of July 1, 1993” following “receive”.

—1991 (Adj. Sess.) Subsec. (a): Substituted “$79.00” for “$77.50” and inserted “as of July 1, 1992, and $82.00 a day as of July 1, 1993” preceding “for time”.

—1989 (Adj. Sess.) Subsec. (a): Substituted “$77.50” for “$75.00”.

—1989. Subsec. (a): Substituted “$75.00” for “$69.00” preceding “a day”.

—1987 (Adj. Sess.) Subsec. (a): Substituted “$69.00” for “$65.00” preceding “a day”.

—1987. Subsec. (a): Substituted “$65.00” for “$59.00” preceding “a day”.

—1985 (Adj. Sess.) Subsec. (a): Substituted “$59.00” for “$55.00” preceding “a day”.

—1985. Subsec. (a): Substituted “$55.50” for “$53.30” preceding “a day”.

—1983 (Adj. Sess.) Subsec. (a): Substituted “$53.30” for “$51.50” preceding “a day”.

—1983. Subsec. (a): Substituted “$51.50” for “$49.00” following “receive”.

—1981 (Adj. Sess.) Subsec. (a): Increased compensation from “$45.25” to “$49.00”.

—1981. Subsec. (a): Per diem increased to $45.25.

—1979 (Adj. Sess.) Subsec. (a): Substituted the words “as allowed” for “under the rules and regulations pertaining” preceding the words “to classified state employees” and increased compensation to $41.50 a day.

—1979. Subsec. (a): Per diem increased to $39.

—1977 (Adj. Sess.) Subsec. (a): Increased per diem pay to $37.

—1977. Subsec. (a): Increased per diem pay to $35.00.

—1975. Subsec. (a): Substituted “superior” for “county” court and “under the rules and regulations pertaining to classified state employees” for “when away from home on official business”.

—1973 (Adj. Sess.) Subsec. (b): Changed “county court” to “superior court”.

—1973. Subsec. (a): Increased per diem pay.

—1965. Per diem pay increased from $12 to $15.

—1961. Raised amount received per day, in subsec. (a), from $10 to $12.

ANNOTATIONS

Pay vouchers.

At trial for false swearing at inquest investigating misconduct of judges, notwithstanding that at time of the inquest Supreme Court’s issuance of new, broadened definition of a judge’s “official duties” may have foreclosed prosecution of defendant on charge of submitting false pay vouchers, prosecutor’s questions concerning defendant’s signature on file jackets did not support a defense of perjury trap, as investigation into possible coverup of submission of false pay vouchers was properly within the scope of the inquest. State v. Wheel, 155 Vt. 587, 587 A.2d 933, 1990 Vt. LEXIS 262 (1990).

Cited.

Cited in Wheel v. Robinson, 34 F.3d 60, 1994 U.S. App. LEXIS 23757 (2d Cir. 1994).

§ 1142. Probate judges.

  1. 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:

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  2. Probate judges shall be entitled to be paid by the State for their actual and necessary expenses under the rules and regulations pertaining to classified State employees. The compensation for the Probate judge of the Chittenden District shall be for full-time service.
  3. 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.

Annual Salary as of January 5, 2020 Annual Salary as of July 4, 2021 (1) Addison $63,384 $66,014 (2) Bennington 80,127 83,452 (3) Caledonia 56,210 58,543 (4) Chittenden 133,720 139,269 (5) Essex 15,703 16,355 (6) Franklin 63,384 66,014 (7) Grand Isle 15,703 16,355 (8) Lamoille 44,249 46,085 (9) Orange 52,620 54,804 (10) Orleans 51,425 53,559 (11) Rutland 113,613 118,328 (12) Washington 87,301 90,924 (13) Windham 70,560 73,488 (14) Windsor 95,674 99,644

HISTORY: 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. 1 30 (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.

History

Source.

Subsec. (a): 1957, No. 300 , § 1.

Subsec. (b): V.S. 1947, § 10,468. P.L. § 8964. 1921, No. 240 .

Amendments

—2021. Subsec. (a): Table amended generally.

—2017 (Adj. Sess.). Subsec. (a): Table amended generally by Act 191, § 7.

Subsec. (a): Table amended generally by Act 191, § 10.

—2015 (Adj. Sess.). Subsec. (a): Changed salaries and dates throughout.

—2015. Subsec. (a): Deleted “annual salaries of the” preceding “Probate judges”, inserted “shall be entitled to receive the following annual salaries” following “Probate Districts” and deleted “shall be as follows” at the end of the subsection.

Subsec. (b): Inserted “entitled to be” following “Probate judges shall be” and inserted “for” preceding “their actual and necessary expenses” in the first sentence.

—2013 (Adj. Sess.). Subsec. (a): Rewrote the table.

—2011 (Adj. Sess.) Adjustments made to salary figures throughout and new column of figures added for salaries as of July 14, 2013.

—2011. Subsec. (c): Substituted “50 percent of the salary of the most highly paid probate judge” for “$45,701.00” in the first and second sentences.

—2009 (Adj. Sess.) Section amended generally.

—2009. Subsec. (a): Act No. 4, § 123, deleted former subdivs. (6), (9), and (11); redesignated former subdivs. (7) and (8) as present subdivs. (6) and (7), former subdiv. (10) as present subdiv. (8), and former subdivs. (12)-(17) as present subdivs. (9)-(14); in present subdiv. (13) substituted “Windham” for “Westminster” and “59,321” for “43,594”, and in present subdiv. (14) substituted “75,859” for “51,559”.

—2007. Revised the table to provide salary increases for judges of Probate as of July 8, 2007.

—2005. Revised the table to provide salary increases for judges of Probate as of July 10, 2005 and July 9, 2006.

—2003 (Adj. Sess.). Revised the table to provide salary increases for judges of Probate as of July 11, 2004.

—2003. Subsec. (a): Revised the table to provide salary increases for judges of Probate as of July 13, 2003.

—2001 (Adj. Sess.). Subsec. (a): Revised the table to provide salary increases for judges of Probate as of July 14, 2002.

—2001. Subsec. (a): Amended generally.

—1999. Subsec. (a): Revised the table to provide salary increases as of July 4, 1999 and July 2, 2000 and thereafter.

—1997. Subsec. (a): Increased salaries generally.

—1995 (Adj. Sess.) Subsec. (a): Amended generally.

—1993 (Adj. Sess.). Subsec. (a): Act No. 171 deleted subdiv. (3), redesignated former subdivs. (4)-(13) as subdivs. (3)-(12), added subdiv. (13), deleted former subdiv. (15), and redesignated former subdivs. (16)-(19) as subdivs. (15)-(18).

Act No. 227 increased salaries generally.

—1991 (Adj. Sess.). Subsec. (a): Increased salaries generally.

—1989 (Adj. Sess.). Subsec. (a): Increased salaries generally.

—1989. Subsec. (a): Increased salaries generally.

—1987 (Adj. Sess.). Subsec. (a): Increased salaries generally.

—1987. Subsec. (a): Increased salaries generally.

—1985 (Adj. Sess.). Subsec. (a): Increased salaries generally.

—1985. Subsec. (a): Increased salaries generally.

—1983 (Adj. Sess.). Subsec. (a): Increased salaries generally.

—1983. Subsec. (a): Increased salaries generally.

—1981 (Adj. Sess.). Subsec. (a): Increased salaries.

—1981. Subsec. (a): Increased salaries.

—1979 (Adj. Sess.). Subsec. (a): Increased salaries.

—1979. Subsec. (a): Increased salaries.

—1977 (Adj. Sess.). Subsec. (a): Increased salaries.

—1977. Subsec. (a): Increased salaries.

—1975. Subsec. (b): Substituted the words “under the rules and regulations pertaining to classified state employees” for “when away from home on official business”.

—1973 (Adj. Sess.). Subsec. (a): Act. No. 154 numbered undesignated paragraphs and increased salary for Essex.

Act No. 266 increased salaries for all probate districts.

—1973. Subsec. (a): Increased salaries.

—1971. Subsec. (a): Deleted provisions relating to copy fees.

—1969 (Adj. Sess.). Subsec. (a): Added references to §§ 1434 and 1751 and increased salaries.

—1967 (Adj. Sess.). Subsec. (a): Increased salaries.

—1965. Subsec. (a): Raised pay of all judges of probate.

—1961. Subsec. (a): Increased salaries.

Consolidation of probate districts of Addison and New Haven. Salary of judge of probate for the Addison Probate District as established by 1957, No. 261 , § 2 was repealed by 1961, No. 278 , § 2.

Prior law.

Prior salary provisions were found in V.S. 1947, § 10,467, as amended by 1951, No. 231 , § 2, and repealed by 1957, No. 300 , § 4.

Notes to Opinions

Construction.

Section is only provision under which Probate Court fees for the benefit of the State are specifically provided. 1956-58 Vt. Op. Att'y Gen. 46.

Judge’s fees.

There was nothing in this section that prior to the 1957 amendment either directly or by necessary implication authorized Probate judge to charge fees for his own use for his time and services against an estate being probated in his court. 1956-58 Vt. Op. Att'y Gen. 32.

§ 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.

HISTORY: Amended 2009, No. 154 (Adj. Sess.), § 200, eff. Feb. 1, 2011.

History

Source.

V.S. 1947, § 10,544. P.L. § 9039. 1921, No. 242 , § 1. G.L. § 7431. P.S. § 6229. V.S. § 5384. 1884, No. 110 , § 9. R.L. § 4534. 1866, No. 20 .

Amendments

—2009 (Adj. Sess.) Inserted “division of the superior” following “probate” in the introductory paragraph and in subdiv. (3).

ANNOTATIONS

Larger payments.

Section expressly authorizes a larger payment in cases of unusual difficulty and responsibility, and is thus distinguishable from statutes prohibiting receipt by certain officers of more than statutory fees. Powell v. Foster's Est., 71 Vt. 160, 44 A. 96, 1899 Vt. LEXIS 145 (1899).

Smaller payments.

Executor is entitled to statutory fee per diem although, in ignorance of the law, he made his charges at lower rate. In re Hall's Est., 70 Vt. 458, 41 A. 508, 1898 Vt. LEXIS 63 (1898).

§ 1144. Repealed. 2009, No. 154 (Adj. Sess.), § 201, effective February 1, 2011.

History

Former § 1144. Former § 1144, relating to compensation of appraisers, was derived from V.S. 1947, § 10,545. P.L. § 9040. 1921, No. 242 , § 2. 1919, No. 49 , § 2.

§ 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.

History

Source.

V.S. 1947, § 10,548. P.L. § 9043. G.L. § 7429. P.S. § 6227. V.S. § 5382. R.L. § 4532. G.S. 126, § 29.

CROSS REFERENCES

Probate Court fees, see § 1434 of this title.

ANNOTATIONS

Personal gain.

The exercise of the judicial authority of a Probate judge cannot properly be used to return to the judge any personal gain beyond a salary. In re Douglas, 135 Vt. 585, 382 A.2d 215, 1977 Vt. LEXIS 684 (1977).

Notes to Opinions

Judges’ fees.

Probate judges may charge no fees for their own use and benefit, except fees for certified copies. 1956-58 Vt. Op. Att'y Gen. 46.

This section obviously prohibits a Probate judge from charging fees against estates in the judge’s court for the judge’s own use, unless exceptions have been provided for. 1956-58 Vt. Op. Att'y Gen. 32.

§ 1146. Repealed. 2009, No. 154 (Adj. Sess.), § 238.

History

Former § 1146. Former § 1146, relating to expenses and fees for District judges, was derived from: Subsec. (a): 1957, No. 290 , § 1; 1955, No. 285 , § 3. 1951, No. 231 , § 3; V.S. 1947, § 10,470; 1945, No. 189 , § 4; P.L. § 8966; 1933, No. 157 , § 8605; G.L. § 7377. 1917, No. 254 , § 7148; 1915, No. 91 , §§ 5, 21, 25. 1915, No. 272 , § 300; 1915, No. 289 , § 38; 1915, No. 320 . § 2. 1915, No. 321 , § 2; 1912, No. 353 , § 28. 1912, No. 354 , § 6; 1912, No. 356 , § 23; 1912, No. 357 , § 6; 1910, No. 324 , § 13; 1908, No. 291 , § 13; 1908, No. 292 , § 8; 1908, No. 293 , § 14; 1908, No. 296 , § 14; 1908, No. 297 , § 14; P.S. § 6178; 1906, No. 208 , § 1; 1906, No. 306 , § 14; 1906, No. 307 , § 12; V.S. § 5335; 1890, No. 73 , § 1; Subsec. (b): V.S. 1947, § 10,471; P.L. § 8967; 1933, No. 157 , § 8606; 1921, No. 232 , § 1; G.L. § 7377. 1917, No. 254 , § 7148; 1915, No. 91 , §§ 5, 21, 25; 1915, No. 272 , § 300; 1915, No. 289 , § 38; 1915, No. 320 , § 2; 1915, No. 321 , § 2; 1912, No. 353 , § 28; 1912, No. 354 , § 6; 1912, No. 356 , § 23; 1912, No. 357 , § 6. 1910, No. 324 , § 13; 1908, No. 291 , § 13; 1908, No. 292 , § 8; 1908, No. 293 , § 14; 1908, No. 296 , § 14; 1908, No. 297 , § 14; P.S. § 6178; 1906, No. 208 , § 1; 1906, No. 306 , § 14; 1906, No. 307 , § 12; V.S. § 5335. 1890, No. 73 , § 1 and amended by 1959, No. 142 , §§ 3, 9; 1961, No. 241 ; 1965, No. 194 , § 9; No. 195, § 3; 1967, No. 194 , § 16; No. 347 (Adj. Sess.), § 4; 1975, No. 118 , § 95 and 1975, No. 196 (Adj. Sess.), § 13.

§ 1147. Courtroom expenses.

The expense of providing a suitable courtroom, without the county courthouse, including rent, heat, and light therefor, 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.

HISTORY: Amended 1961, No. 30 , eff. March 17, 1961; 1995, No. 148 (Adj. Sess.), § 4(c)(2), eff. May 6, 1996.

History

Source.

V.S. 1947, § 10,472 P.L. § 8968. 1933, No. 157 , § 8607. 1921, No. 232 , § 1. G.L. § 7377. 1917, No. 254 , § 7148. 1915, No. 91 , §§ 5, 21, 25. 1915, No. 272 , § 300. 1915, No. 289 , § 38. 1915, No. 320 , § 2. 1915, No. 321 , § 2. 1912, No. 353 , § 28. 1912, No. 354 , § 6. 1912, No. 356 , § 23. 1912, No. 357 , § 6. 1910, No. 324 , § 13. 1908, No. 291 , § 13. 1908, No. 292 , § 8. 1908, No. 293 , § 14. 1908, No. 296 , § 14. 1908, No. 297 , § 14. P.S. § 6178. 1906, No. 208 , § 1. 1906, No. 306 , § 14. 1906, No. 307 , § 12. V.S. § 5335. 1890, No. 73 , § 1.

Revision note—

Changed last two words of section “purchasing director” to “commissioner of general services” pursuant to Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the division of purchasing and the transfer of the duties, responsibilities, authority, authorized positions, and equipment to the department of general services as established by the order. Executive Order No. 35-87 further provided for the designation of the exempt position of director of purchasing as the position of commissioner of general services. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Amendments

—1995 (Adj. Sess.) Substituted “commissioner of buildings and general services” for “commissioner of general services”.

—1961. Substituted “director” for “agent”.

ANNOTATIONS

Approval of contract.

Right of approval provided by this section is not arbitrary in character, nor a veto, though in addition to auditing accounts the agent is required to determine necessity of place for courtroom, reasonableness of rents specified, and other essential terms of lease. Scott v. Gates, 99 Vt. 335, 131 A. 797, 1926 Vt. LEXIS 140 (1926).

Notes to Opinions

Office furniture.

Section authorizes purchasing agent to approve contracts for office furniture to be used for purposes of the municipal court and does not limit court facilities to location which may be used as actual trial or hearing room. 1946-48 Vt. Op. Att'y Gen. 262.

Words “office furniture” as used in this section do not include expense of installing or maintaining telephones at courtroom. 1946-48 Vt. Op. Att'y Gen. 263.

Subchapter 5. County Officers

§ 1181. Repealed. 2009, No. 154 (Adj. Sess.), § 238.

History

Former § 1181. Former § 1181, relating to salaries of county clerks, was derived from: Subsec. (a): 1957, No. 255 ; 1953, No. 152 ; 1949, No. 256 ; V.S. 1947, § 10,474; 1945, No. 189 , § 1; P.L. § 8970; 1933, No. 157 , § 8609; 1921, No. 236 , § 1; 1919, No. 212 , § 2; G.L. § 7403; 1908, No. 195 ; P.S. § 6205. 1906, No. 209 , § 1; 1904, No. 167 , § 1; 1902, No. 153 , §§ 1, 5; V.S. § 5358; 1882, No. 102 , §§ 1, 2. R.L. §§ 4501, 4502; 1880, No. 28 , §§ 1, 2; Subsec. (b): V.S. 1947, § 10,475; P.L. § 8972; 1921, No. 236 , § 2 and amended by 1961, No. 73 ; No. 239, § 1,; 1965, No. 195 , § 1; 1967, No. 164 , § 5; 1969, No. 207 (Adj. Sess.), § 16; No. 294 (Adj. Sess.), § 8; 1971, No. 105 , § 3; 1973, No. 117 , § 7; No. 266 (Adj. Sess.), § 21; 1977, No. 109 , § 16; No. 222 (Adj. Sess.), § 8; 1979, No. 59 , § 4; No. 141 (Adj. Sess.), § 12; 1981, No. 91 , § 9; 1981, No. 249 (Adj. Sess.), § 16; 1983, No. 88 , § 5; 1983, No. 243 (Adj. Sess.), § 9; 1985, No. 93 , § 5; 1985, No. 225 (Adj. Sess.), § 9; 1987, No. 121 , § 7; 1987, No. 183 (Adj. Sess.), § 11; 1989, No. 67 , § 6; 1989, No. 277 (Adj. Sess.), § 8; 1991, No. 189 (Adj. sess.), § 9; 1993, No. 227 (Adj. Sess.), § 6; 1995, No. 177 (Adj. Sess.), § 5; 1997, No. 28 , § 5; 1999, No. 40 , § 5; 1999, No. 66 (Adj. Sess.), § 22a; No. 135 (Adj. Sess.), § 2; 2001, No. 66 , § 5; 2001, No. 116 (Adj. Sess.), § 2; 2003, No. 66 , § 319; 2003, No. 156 (Adj. Sess.), § 10; 2005, No. 66 , § 6 and 2007, No. 47 , § 4.

Notes to Opinions

Annotations From Former § 1181.

Payment from county funds.

A county may not expend its funds to supplement the statutory salary of the county clerk. 1972-74 Vt. Op. Att'y Gen. 38.

§ 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.

HISTORY: Added 1977, No. 247 (Adj. Sess.), § 196; amended 1999, No. 135 (Adj. Sess.), § 3.

History

Amendments

—1999 (Adj. Sess.). Substituted “sections 502 and 503 of this” for “sections 502, 503 and 1181 of this”, made a minor change in punctuation, and deleted “$3.00” preceding “execution fee”.

§ 1182. Sheriffs.

  1. The sheriffs of all counties except Chittenden shall be entitled to receive salaries in the amount of $86,116.00 as of January 5, 2020 and $89,690.00 as of July 4, 2021. The Sheriff of Chittenden County shall be entitled to an annual salary in the amount of $91,133.00 as of January 5, 2020 and $94,915.00 as of July 4, 2021.
  2. Compensation under subsection (a) of this section shall be reduced by 10 percent for any sheriff who has not obtained Level III law enforcement officer certification under 20 V.S.A. § 2358 .

HISTORY: 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.

History

Source.

Subsec. (a): 1953, No. 174 . 1951, No. 227 , § 3. V.S. 1947, § 10,476. 1945, No. 189 , § 3. 1941, No. 195 , § 1. P.L. § 8973. 1933, No. 157 , § 8612. 1921, No. 237 . G.L. § 7410. 1917, No. 254 , § 7182. 1915, No. 1 , § 199. 1908, No. 178 , §§ 2, 8.

Subsec. (b): V.S. 1947, § 10,477. P.L. § 8974. 1933, No. 157 , § 8613. 1921, No. 237 . G.L. § 7410. 1917, No. 254 , § 7182. 1915, No. 1 , § 199. 1908, No. 178 , §§ 2, 8.

Amendments

—2021. Subsec. (a): Deleted “$84,969.00 as of July 7, 2019 and” and inserted “$89,690.00 as of July 4, 2021” in the first sentence and deleted “$89,919.00 as of July 7, 2019 and” and inserted “$94,915.00 as of July 4, 2021” in the second sentence.

—2017 (Adj. Sess.). Subsec. (a): Act 191, § 11, substituted “$82,274.00 as of July 8, 2018 and $83,385.00 as of January 6, 2019” for “$77,672.00 as of July 10, 2016 and $80,740.00 as of July 09, 2017” in the first sentence and substituted “87,067.00 as of July 8, 2018 and $88,242.00 as of January 6, 2019” for “$82,197.00 as of July 10, 2016 and $85,444.00 as of July 09, 2017” in the second sentence.

Subsec. (a): Act 191, § 12, substituted “$84,969.00 as of July 7, 2019 and $86,116.00 as of January 5, 2020” for “$82,274.00 as of July 8, 2018 and $83, 385.00 as of January 6, 2019” in the first sentence and substituted “$89,919.00 as of July 7, 2019 and $91,133.00 as of January 5, 2020” for “$87,067.00 as of July 8, 2018 and $88,242.00 as of January 6, 2019” in the second sentence.

—2015 (Adj. Sess.). Subsec. (a): Amended generally.

—2015. Subsec. (a): Substituted “$77,672.00 as of July 10, 2016 and $80,740.00 as of July 09, 2017” for “$72,508.00 as of July 13, 2014 and $74,901.00 as of July 12, 2015” in the first sentence. Substituted “$82,197.00 as of July 10, 2016 and $85,444.00 as of July 09, 2017” for “$76,732.00 as of July 13, 2014 and $79,264.00 as of July 12, 2015” in the second sentence.

—2013 (Adj. Sess.). Subsec. (a): Act No. 160 substituted “$72,508.00 as of July 13, 2014 and $74,901.00 as of July 12, 2015” for “$67,688.00 as of July 1, 2012 and $70,192.00 as of July 14, 2013” at the end of the first sentence and “$76,732.00 as of July 13, 2014 and $79,264.00 as of July 12, 2015” for “$71,631.00 as of July 1, 2012 and $74,281.00 as of July 14, 2013” at the end of the second sentence.

Subsec. (b): Act No. 141 substituted “obtained Level III law enforcement officer certification” for “completed the full-time training requirements” following “sheriff who has not”.

—2011 (Adj. Sess.) Subsec. (a): Substituted “$67,688.00 as of July 1, 2012 and $70,192.00 as of July 14, 2013” for “$65,812.00 as of July 8, 2007” in the first sentence, and “$71,631.00 as of July 1, 2012 and $74,281.00 as of July 14, 2013” for “$69,646.00 as of July 8, 2007” in the second sentence.

—2007. Subsec. (a): Substituted “$65,812.00 as of July 8, 2007” for “$58,400.00 as of July 11, 2004, $60,724.00 as of July 10, 2005, and $63,141.00 as of July 9, 2006” in the first sentence, and “$69,646.00 as of July 8, 2007” for “$61,802.00 as of July 11, 2004, $64,262.00 as of July 10, 2005, and $66,820.00 as of July 9, 2006” in the second sentence.

—2005. Subsec. (a): Added “$60,724.00 as of July 10, 2005, and $63,141.00 as of July 9, 2006” in the first sentence, and “$64,262.00 as of July 10, 2005, and $66,820.00 as of July 9, 2006” in the second sentence.

—2003 (Adj. Sess.). Subsec. (a): Substituted “$58,400.00 as of July 11, 2004” for “$55,896 as of July 13, 2003” and “$61,802.00 as of July 11, 2004” for “$59,152 as of July 13, 2003”.

—2003. Subsec. (a): Amended generally.

—2001. Subsec. (a): Amended generally.

—1999. Subsec. (a): Revised the table to provide salary increases as of July 4, 1999 and July 2, 2000 and thereafter.

—1997. Subsec. (a): Increased salaries generally.

—1995 (Adj. Sess.) Subsec. (a): Amended generally.

—1993 (Adj. Sess.). Subsec. (a): Increased salaries generally.

—1991 (Adj. Sess.). Act No. 189 increased salaries generally.

Act. No. 257 designated existing provisions of the section as subsec. (a) and added subsec. (b).

—1989 (Adj. Sess.). Increased salaries generally.

—1989. Increased salaries generally.

—1987 (Adj. Sess.). Increased salaries generally.

—1987. Increased salaries generally.

—1985 (Adj. Sess.). Increased salaries generally.

—1985. Increased salaries generally.

—1983 (Adj. Sess.). Increased salaries generally.

—1983. Increased salaries generally.

—1981 (Adj. Sess.). Increased salaries.

—1981, 1979 (Adj. Sess.), 1979, 1977 (Adj. Sess.), 1977, 1973, 1967 (Adj. Sess.), 1966, 1961. Increased salaries.

—1975 (Adj. Sess.). Deleted undesignated paragraph, which provided for pay raises for full-time deputies and the allotment of sums to individual counties.

—1973 (Adj. Sess.). Numbered undesignated paragraphs and increased salaries.

—1973. Deleted subsec. (b), which related to sheriffs not being paid by the State for expenses incurred in civil causes.

Exemption from salary reductions for sheriffs taking office prior to July 1, 1992. 1991, No. 257 (Adj. Sess.), § 10(a) provided that any sheriff taking office before July 1, 1992, who has completed the part-time training requirements established under 20 V.S.A. § 2358 , shall not be subject to the salary reduction provisions of this section.

CROSS REFERENCES

Sheriffs’ fees, see § 1591 of this title.

ANNOTATIONS

Cited.

Cited in McLaughlin v. State, 161 Vt. 492, 642 A.2d 683, 1994 Vt. LEXIS 41 (1994); Frank v. United States, 860 F. Supp. 1030, 1994 U.S. Dist. LEXIS 11860 (D. Vt. 1994).

§ 1183. State’s Attorneys.

  1. The State’s Attorneys shall be entitled to receive annual salaries as follows:

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  2. 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 and regulations pertaining to classified State employees.

Annual Salary as of January 5, 2020 Annual Salary as of July 4, 2021 (1) Addison County $116,486 $121,320 (2) Bennington County $116,486 $121,320 (3) Caledonia County $116,486 $121,320 (4) Chittenden County $121,782 $126,836 (5) Essex County $87,366 $90,992 (6) Franklin County $116,486 $121,320 (7) Grand Isle County $87,366 $90,992 (8) Lamoille County $116,486 $121,320 (9) Orange County $116,486 $121,320 (10) Orleans County $116,486 $121,320 (11) Rutland County $116,486 $121,320 (12) Washington County $116,486 $121,320 (13) Windham County $116,486 $121,320 (14) Windsor County $116,486 $121,320

HISTORY: 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.

History

Revision note

—2021. In subsec. (a), inserted “2020” following “January 5,” to correct an inadvertent deletion in 2021, No. 74 , § F.109.

Revision note—. At the beginning of subsec. (b), substituted “finance and management commissioner” for “finance and information support commissioner” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of the commissioner of that entity to the commissioner of the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Section heading changed to “State’s attorneys” from ‘’annual salaries” to better reflect subject matter of the text.

Amendments

—2021. Subsec. (a): Table amended generally.

—2017 (Adj. Sess.). Subsec. (a): Table amended generally by Act 191, § 13 and § 14.

—2015 (Adj. Sess.). Subsec. (a): Changed salaries and dates throughout.

—2015. Subsec. (a): Deleted “annual salaries of” preceding “State’s Attorneys” and inserted “entitled to receive annual salaries as follows” at the end of the subsection.

—2013 (Adj. Sess.). Subsec. (a): Rewrote the table.

—2011 (Adj. Sess.) Subsec. (a): Adjusted salary amounts throughout and added column for salaries as of July 14, 2013.

—2007. Subsec. (a): Act No. 47 revised the table to provide salary increases for state’s attorneys as of July 8, 2007.

Subsec. (b): Act No. 7 substituted “commissioner of finance and management” for “commissioner of human resources”.

—2005. Subsec. (a): Revised the table to provide salary increases for state’s attorneys as of July 10, 2005 and July 9, 2006.

—2003 (Adj. Sess.). Subsec. (a): Revised the table to provide salary increases for state’s attorneys as of July 11, 2004.

Subsec. (b): Substituted “commissioner of human resources” for “commissioner of personnel”.

—2003. Subsec. (a): Revised the table to provide salary increases for state’s attorneys as of July 13, 2003.

—2001. Subsec. (a): Amended generally.

—1999. Subsec. (a): Revised the table to provide salary increases as of July 4, 1999 and July 2, 2000 and thereafter.

—1997. Subsec. (a): Increased salaries generally.

—1995 (Adj. Sess.) Subsec. (a): Act No. 177 amended the subsection generally.

Subsec. (b): Act No. 123 substituted “commissioner of personnel” for “finance and management commissioner” preceding “shall allow”.

—1993 (Adj. Sess.) Subsec. (a): increased salaries generally.

—1991 (Adj. Sess.). Subsec. (a): Amended generally.

—1989 (Adj. Sess.). Subsec. (a): Increased salaries generally.

—1989. Subsec. (a): Increased salaries generally.

—1987 (Adj. Sess.). Subsec. (a): Increased salaries generally.

—1987. Subsec. (a): Increased salaries generally.

—1985 (Adj. Sess.). Subsec. (a): Increased salaries generally.

—1985. Subsec. (a): Increased salaries generally.

—1983 (Adj. Sess.). Subsec. (a): Act No. 243 increased salaries generally.

Subsec. (b): Act No. 195 inserted “and information support” following “finance”.

—1983. Subsec. (a): Increased salaries generally.

—1981 (Adj. Sess.). Subsec. (a): Increased salaries.

—1981, 1979 (Adj. Sess.), 1979, 1977 (Adj. Sess.), 1977. Subsec. (a): Increased annual salaries.

—1975 (Adj. Sess.). Subdiv. (a)(3): Increased compensation.

Subsec. (b): Provided for the payment of “actual” expenses.

—1975. Subsec. (b): Substituted “commissioner” for “director” and “under the rules and regulations pertaining to classified state employees” for “when away from home on official business”.

—1973 (Adj. Sess.). Act No. 154 numbered undesignated paragraphs and increased salary for Caledonia county state’s attorney.

Act No. 266 increased annual salaries of all state’s attorneys.

Transfer of rules, positions, and appropriations. 2007, No. 7 , § 6, provides: “(a) The rules of the department of human resources relating to payroll functions in effect on the effective date of this act shall be the rules of the department of finance and management until amended or repealed by that department. All references in those rules to the ‘commissioner’ and the ‘department of human resources’ shall be deemed to refer to the ‘commissioner of finance and management’ and the ‘department of finance and management’ respectively.

“(b) All employees, professional and support staff, consultants, positions, and equipment and the remaining balances of all appropriations for personal services and operating expenses for payroll functions are transferred from the department of human resources to the department of finance and management.”

Prior law.

Former § 1183 related to salaries of State’s Attorneys and was repealed by 1971, No. 120 , § 52.

Prior to repeal former § 1183 was amended by 1959, No. 328 (Adj. Sess.), § 8; 1961, No. 283 , § 1; 1963, No. 150 ; 1965, No. 132 ; 1967, No. 164 , §§ 1, 2; 1967, No. 363 (Adj. Sess.), §§ 3-5; 1969, No. 134 , No. 266 (Adj. Sess.), § 9.

Notes to Opinions

Annual allowance.

Provision of former § 1183 that State’s Attorneys shall be paid an annual allowance payable quarterly commencing Feb. 1 of each year indicates legislative intention that allowance should be made commencing on first quarter accruing after July 1, 1953. 1952-54 Vt. Op. Att'y Gen. 65.

§ 1183a. Repealed. 1971, No. 260 (Adj. Sess.), § 37.

History

Former § 1183a. Former § 1183a, relating to salaries of State’s Attorneys, was derived from 1971, No. 120 , § 51 and is now covered by § 1183.

§ 1184. Repealed. 1973, No. 266 (Adj. Sess.), § 27, eff. April 16, 1974.

History

Former § 1184. Former § 1184, relating to incumbent State’s Attorney’s salary, was derived from 1971, No. 260 (Adj. Sess.), § 35; 1973,No. 117, § 8.

§ 1185. Office expenses.

  1. 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.
    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. (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 .

HISTORY: 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.

History

Revision note—

At the beginning of the first sentence, substituted “commissioner of finance and management” for “commissioner of finance and information support” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of the commissioner of that entity to the commissioner of the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Amendments

—2017. Subdiv. (b)(1): Inserted “unless otherwise modified by a collective bargaining agreement entered into pursuant to 3 V.S.A. chapter 27” following “Attorney” in the first sentence and “unless otherwise determined through collective bargaining pursuant to 3 V.S.A. chapter 27” following “Governor” in the third sentence.

Subdiv. (b)(2): Added.

—2003 (Adj. Sess.). Subsec. (b): Substituted “commissioner of human resources” for “commissioner of personnel” in the third sentence.

—1987 (Adj. Sess.). Section amended generally.

—1983 (Adj. Sess.). Inserted “and information support” following “commissioner of finance” in the first sentence.

ANNOTATIONS

Secretaries.

Secretaries with the State’s Attorney’s Offices are to be considered State employees paid by the State, and shall receive those benefits available to other classified State employees who are similarly situated, but the same statutory subsection provides that the secretaries are not subject to the rules regarding classification of State employees and that they shall be hired by and shall serve at the pleasure of the State’s Attorney. In short, although the provision requires that the secretaries be paid as State employees, it also recognizes that they will be hired by and work for a county employer, which makes them municipal employees under the Vermont Municipal Employee Relations Act. In re Election Petitions, 2016 VT 7, 201 Vt. 123, 136 A.3d 213, 2016 Vt. LEXIS 1 (2016).

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.

History

Source.

V.S. 1947, § 10,420. P.L. § 8891. G.L. § 283. P.S. § 223. V.S. § 173. R.L. § 116. 1880, No. 136 , § 6.

§ 1222. Repealed. 1961, No. 283, § 3, eff. Aug. 1, 1961.

History

Former § 1222. Former § 1222, relating to city grand jurors, was derived from: Subsec. (a): 1959, No. 156 , § 1; 1953, No. 231 ; V.S. 1947, § 10,480; 1945, No. 189 , § 5; P.L. § 8977; G.L. § 7453; 1910, No. 91 , § 3 and amended by 1959, No. 156 , § 2.

Subsec. (b): V.S. 1947, § 10,481; P.L. § 8978; G.L. § 7452; 1910, No. 91 , § 3.

Subsec. (c): 1959, No. 156 , § 2.

§ 1223. Repealed. 2017, No. 93 (Adj. Sess.), § 24.

History

Former § 1223. Former § 1223, relating to city grand jurors and salaries, was derived from 1961, No. 283 , § 2.

§ 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.

HISTORY: Amended 1979, No. 161 (Adj. Sess.), § 14, eff. date, see note set out below.

History

Source.

V.S. 1947, § 10,488. P.L. § 8986. 1921, No. 97 , § 1. 1919, No. 219 , § 1.

Amendments

—1979 (Adj. Sess.). Added last two sentences, which provided a town may vote a salary in addition to fees or a salary in lieu of fees and disposition of such fees.

1979, No. 161 (Adj. Sess.), § 16, provided “This act shall take effect July 1, 1980, except that secs. 14 [which amended this section], 15 [which added § 1179 to Title 24] and 16 [this note] shall not apply to any town clerk in office on that date [July 1, 1980] during the remainder of his or her current term of office.”

§ 1225. Town road commissioner.

The compensation of a town road commissioner shall be fixed by the selectboard.

HISTORY: Amended 1981, No. 87 , § 4; 2017, No. 130 (Adj. Sess.), § 18.

History

Source.

V.S. 1947, § 10,489 P.L. § 8987. G.L. § 4541. P.S. § 3961. V.S. § 3452. 1894, No. 80 . 1892, No. 56 , § 16.

Amendments

—2017 (Adj. Sess.). Deleted “, shall not be less than $2.00 per day for time actually spent, and shall be paid out of the Transportation Fund” from the end of the paragraph.

—1981. Changed “highway fund” to “transportation fund”.

§ 1226. Repealed. 1989, No. 200 (Adj. Sess.), § 7.

History

Former § 1226. Former § 1226, relating to allowance for constable at general election, was derived from 1955, No. 7 . V.S. 1947, § 10,490; P.L. § 8988; G.L. § 7415; P.S. § 6212; V.S. § 5368; 1892, No. 99 .

§ 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.

HISTORY: Amended 1965, No. 138 , § 2; 1985, No. 264 (Adj. Sess.), § 2.

History

Source.

1957, No. 298 , § 6. 1953, No. 161 , § 2. V.S. 1947, § 10,449. 1947, No. 44 , § 3. P.L. § 8943. G.L. § 7460. 1915, No. 1 , § 210. 1912, No. 42 , § 9.

Amendments

—1985 (Adj. Sess.). Substituted “$50.00” for “$15.00”.

—1965. Per diem pay increased from $10 to $15.

§ 1228. Repealed. 2017, No. 98 (Adj. Sess.), § 4, eff. April 11, 2018.

History

Former § 1228. Former § 1228, relating to appraisers for unified towns and gores of Essex County, was derived from 1967, No. 331 (Adj. Sess.), § 2 and amended by 1985, No. 264 (Adj. Sess.), § 3.

§ 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.

HISTORY: Amended 1963, No. 193 , § 31, eff. June 28, 1963.

History

Source.

1957, No. 298 , § 5. 1953, No. 161 . V.S. 1947, § 10,450. 1947, No. 44 , § 4. 1939, No. 19 , § 4. P.L. § 8944. G.L. § 7461. 1915, No. 1 , § 183. 1912, No. 42 , § 34. P.S. § 6256. V.S. § 5408. R.L. § 4537. 1865, No. 21 , § 6. 1862, No. 18 , § 6.

Amendments

—1963. Compensation was increased from “$10.00” to “$15.00” a day.

Applicability. Pursuant to 1967, No. 331 (Adj. Sess.), § 5, eff. Jan. 1, 1969, this section no longer applies to the unorganized towns and gores in Essex County, or to the supervisor or appraisers for those unorganized towns and gores.

CROSS REFERENCES

Unified towns and gores in Essex County, see 24 V.S.A. chapter 41.

Subchapter 7. Expenses

CROSS REFERENCES

Program for reimbursement of credit card charges by State officials and employees generally, see § 466 of this title.

§ 1261. Personal expenses when away from home.

  1. 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 herein shall authorize payment to an administrative official or employee, except the Governor, for travel between his or her place of residence and office, or subsistence thereat except for mileage reimbursement when an employee is called in and required to work at any time other than continuously into his or her 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, said employee shall be reimbursed for his or her reasonable and necessary moving expenses actually incurred. However, the reasonableness of the expense shall be determined by the Commissioner of Human Resources and no such 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. Such 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 his or her home in the usual course of employment rather than out of an office, he or she shall be reimbursed for expenses in the same manner as though he or she were working out of an office, and for the purposes of this section, his or her home shall be considered as his or her office.
  2. 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.
  3. 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 .

HISTORY: 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.

History

Source.

1953, No. 29 . V.S. 1947, § 10,482. P.L. § 8980. 1933, No. 157 , § 8619. 1923, No. 7 , § 22. 1917, No. 17 , § 15. 1917, No. 32 , § 1. 1917, No. 115 , § 10. 1917, No. 128 , § 4. 1917, No. 160 , § 8. 1917, No. 17 1, § 2. 1917, No. 244 , § 4. 1917, No. 248 , § 1. 1917, No. 254 , §§ 7142, 7165. 1915, No. 1 , § 176. 1915, No. 64 , §§ 4, 180. 1915, No. 1 64, § 29. 1915, No. 224 , § 2. 1915, No. 234 . 1912, No. 247 , § 1. 1912, No. 253 , § 2. 1910, No. 240 , § 2. 1910, No. 241 . 1908, No. 116 , § 21. 1908, No. 417 . P.S. §§ 6148, 6172, 6195. 1906, No. 43 , § 3. 1906, No. 111 , § 13. 1906, No. 126 , §§ 6, 28. 1906, No. 218 , § 1. 1902, No. 68 , § 11. 1900, No. 69 , §§ 6, 11. 1898, No. 132 , § 1. 1898, No. 136 , § 2. 1896, No. 123 , §§ 1, 3. V.S. §§ 597, 5332. 1888, No. 9 , § 4. 1886, No. 23 , § 15. 1884, No. 48 , § 2. R.L. §§ 3491, 3492. G.S. 28, § 129. 1855, No. 26 , § 9.

Revision note—

At the end of the third sentence of subsec. (a), substituted “section 904(a) of Title 3” for “section 504(a) of Title 3” to correct an error in the reference.

2015 (Adj. Sess.) general amendment. 2015, No. 172 (Adj. Sess.), § E.108.2 provides: “(a) The words “Commissioner of Finance and Management” are amended to read “Commissioner of Human Resources” in the following statutes: (1) 3 V.S.A. § 631(a)(6) -(7), and 32 V.S.A. § 1261(a) .”

Amendments

—2007. Subsec. (a): Substituted “commissioner of finance and management” for “commissioner of human resources”.

—2003 (Adj. Sess.). Subsec. (a): Substituted “commissioner of human resources” for “commissioner of personnel” in the fifth sentence.

—1995 (Adj. Sess.) Subsec. (a): Substituted “commissioner of personnel” for “commissioner of finance and management” in the fifth sentence.

—1987 (Adj. Sess.). Subsec. (a): Rewrote the former first sentence as the present first and second sentences.

Subsec. (b): Substituted “standards” for “regulations” following “prescribe” in the first sentence and rewrote the second sentence.

—1983 (Adj. Sess.). Subsec. (a): Inserted “of information support” following “commissioner of finance” in the fourth sentence.

—1981 (Adj. Sess.). Subsec. (a): Substituted “and” for “or” between “home” and “office” and added provision for mileage reimbursement when an employee is called in and required to work at any time other than continuously into normally scheduled shift in the first sentence, and deleted former last sentence, which read “He shall not be allowed expenses for travel between his home and an office of the agency by which he is employed unless approved by the appointing officer and the governor.”

—1977. Subsec. (a): Provided that 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) .

Subsec. (b): Provided that regulations are subject to the collective bargaining agreement as defined in 3 V.S.A. § 904(a) .

—1975. Subsec. (a): Act No. 85 designated existing section as subsec. (a) and added provisions for meals taken during travel in the first sentence. Substituted “commissioner of finance” for “finance director” in the third sentence.

Subsec. (b): Added.

Subsec. (c): Added by Act No. 86.

—1961. Added provisions relating to working out of home.

—1959 (Adj. Sess.). Substituted “finance director” for “auditor of accounts”.

—1959. Added exception relating to travel between residence and office and subsistence thereat.

Transfer of rules, positions, and appropriations. 2007, No. 7 , § 6, provides: “(a) The rules of the department of human resources relating to payroll functions in effect on the effective date of this act shall be the rules of the department of finance and management until amended or repealed by that department. All references in those rules to the ‘commissioner’ and the ‘department of human resources’ shall be deemed to refer to the ‘commissioner of finance and management’ and the ‘department of finance and management’ respectively.

“(b) All employees, professional and support staff, consultants, positions, and equipment and the remaining balances of all appropriations for personal services and operating expenses for payroll functions are transferred from the department of human resources to the department of finance and management.”

Notes to Opinions

Dual office holding.

Where person holds office of Civil and Military Affairs and that of member of the Liquor Control Board, fee or salary of each office and expense allowance to each within the limitations provided by this section accrue to person holding such office, respectively, and qualified therein. 1948-50 Vt. Op. Att'y Gen. 160. (Decided under prior law.)

Employees.

Probationary troopers are “employees” within the meaning of this section. 1952-54 Vt. Op. Att'y Gen. 302. (Decided under prior law.)

Word “employees” as used in this section includes State officers or State officials whose salaries, or the minimum or maximum thereof, are fixed by statute. 1952-54 Vt. Op. Att'y Gen. 54. (Decided under prior law.)

The limitation on expenses as to employees, including State officers or officials whose salaries, or the minimum or maximum thereof, is not fixed by statute, does not apply if the appointing authority and the Governor direct otherwise and having so directed so as to avoid the application of this section in a specific case, the general law would be applicable. 1952-54 Vt. Op. Att'y Gen. 54. (Decided under prior law.)

Expenses reimbursable.

State employees who do part of their work in the field and part at an office are not entitled to payment for expenses when they are doing field work in the town in which their office is located. 1960-62 Vt. Op. Att'y Gen. 36. (Decided under prior law.)

State employees who have no regular duties at a particular office and no regular place of employment other than the State as a whole, may continue to receive payment of all their expenses while away from home. 1960-62 Vt. Op. Att'y Gen. 36. (Decided under prior law.)

Fact that State employees, who have no regular duties at a particular office and no regular place of employment other than the State as a whole, occasionally are called to a central office of their department to report or receive instruction does not bring such travel within the limitations of the proviso in the first sentence of this section. 1960-62 Vt. Op. Att'y Gen. 36. (Decided under prior law.)

Expenses for travel from home to office may not be paid to State employees required by their employment to regularly perform their duties in State offices. 1960-62 Vt. Op. Att'y Gen. 36. (Decided under prior law.)

State employees who spend part of their time in the field and yet have regular duties to perform at an office may not receive payment for their expenses to and at their office. 1960-62 Vt. Op. Att'y Gen. 36. (Decided under prior law.)

As to the reimbursement for expenses of State employees who could be claimed to have more than one office or one place of usual employment, it is permissible for appointing authority to designate one fixed location or office as place of usual employment, and as to such place, employee could not receive travel expense or subsistence thereat unless appointing authority and Governor approved otherwise. 1960-62 Vt. Op. Att'y Gen. 36. (Decided under prior law.)

Probationary troopers are entitled to benefits plainly contained in this section whenever such troopers are, for the convenience of the State, required to move from one official station to another. 1952-54 Vt. Op. Att'y Gen. 303. (Decided under prior law.)

Section does not authorize State official to be reimbursed for entire cost of rental of apartment in Montpelier used by himself and family nor should he be reimbursed for fuel oil used to heat such apartment, but only for expenses necessarily incurred by him when away from his residence for travel, room and meals, postage, telephone, etc. 1936-38 Vt. Op. Att'y Gen. 251. (Decided under prior law.)

Officers and officials.

The $750 limitation of former § 1263 applies only to State officers or State officials whose salaries, or the minimum or maximum thereof, are fixed by statute and who reside of Montpelier, and such limitation also applies only in case of travel to or from capital city and subsistence thereat. 1952-54 Vt. Op. Att'y Gen. 54. (Decided under prior law.)

Director of Unemployment Compensation Division of Vermont Unemployment Compensation Commission is an officer of State within meaning of this section and is properly entitled to mileage and subsistence within limitations set forth therein, so long as provisions for same are expressly included in his appointment and approved by Governor. 195o-52 Vt. Op. Att'y Gen. 384. (Decided under prior law.)

The $750 limitation does not have to be allotted monthly at $62.50 and the amount of expenses for any given month charged against this limitation does not matter so long as total for fiscal year does not exceed $750. Per diem members of Liquor Control Board are officers within meaning of this section and are within the limitation contained therein. 1948-50 Vt. Op. Att'y Gen. 159. (Decided under prior law.)

Officers paid by State who have regular duties or regular offices without Montpelier and whose duties are performed for various State agencies or administrative departments in Part II of the 1947 general appropriations act are “State officers” within meaning of such term as used in this section. 1946-48 Vt. Op. Att'y Gen. 62. (Decided under prior law.)

Place of employment.

“Office”, as used in the proviso of the first sentence of this section, means no more than “place of usual employment”, as the latter term was used in 32 V.S.A. former § 1263. 1960-62 Vt. Op. Att'y Gen. 36. (Decided under prior law.)

Since this section is a limitation, if a person has no place of usual employment excepting the State of Vermont as a whole, the person would not be included in the limitation and would therefore be entitled to be reimbursed necessary expenses when away from home for travel and subsistence by virtue of the provisions of § 1261 of this title. 1952-54 Vt. Op. Att'y Gen. 53. (Decided under prior law.)

Section does not apply to those expenses incurred by members of Liquor Control Board when on duty at Board meeting which is held at any location in Vermont other than Montpelier. 1948-50 Vt. Op. Att'y Gen. 166. (Decided under prior law.)

Words “residence” and “residing” are used in their ordinary meaning. 1948-50 Vt. Op. Att'y Gen. 70. (Decided under prior law.)

Taxability of payments.

Sums paid to Governor in reimbursement of living expenses incurred at Montpelier in his official capacity are deducted from his gross income and are not taxable. 1952-54 Vt. Op. Att'y Gen. 390. (Decided under prior law.)

§ 1262. Repealed. 1967, No. 148, § 2.

History

Former § 1262. Former § 1262, relating to office expenses, was derived from 1959, No. 328 (Adj. Sess.), § 15; V.S. 1947, § 10,483; P.L. § 8981; 1933, No. 157 , § 8620; G.L. § 7394; 1917, No. 17 , § 15; 1917, No. 32 , § 1; 1917, No. 115 , § 10; 1917, No. 128 , § 4; 1917, No. 160 , § 8; 1917, No. 17 1, § 2; 1917, No. 244 , § 4; 1917, No. 248 , § 1; 1917, No. 254 , §§ 7142, 7165; 1915, No. 1 , § 176; 1915, No. 64 , §§ 4, 180; 1915, No. 1 64, § 29; 1915, No. 224 , § 2; 1915, No. 234 ; 1912, No. 247 , § 1; 1912, No. 253 , § 2; 1910, No. 240 , § 2; 1910, No. 241 ; 1908, No. 116 , § 21; 1908, No. 417 ; P.S. §§ 6148, 6172, 6195; 1906, No. 43 , § 3; 1906, No. 111 , § 13; 1906, No. 126 , §§ 6, 28; 1906, No. 218 , § 1; 1902, No. 68 , § 11; 1900, No. 69 , §§ 6, 11; 1898, No. 132 , § 1; 1898, No. 136 , No. 2; 1896, No. 123 , §§ 1, 3; V.S. §§ 597, 5332; 1888, No. 9 , § 4; 1886, No. 23 , § 15; 1884, No. 48 , § 2; R.L. §§ 3491, 3492; G.S. 28, § 129; 1855, No. 26 , § 9.

Section is now covered by § 906 of Title 29.

§ 1263. Repealed. 1959, No. 161, § 2, eff. July 1, 1960.

History

Former § 1263. Former § 1263 relating to limitation of expenses was derived from 1953, No. 267 ; V.S. 1947, § 10,484; P.L. § 8982; 1923, No. 7 , § 45.

Travel between residence and office and subsistence thereat is now covered by § 1261 of this title.

§§ 1264, 1265. Repealed. 1959, No. 328 (Adj. Sess.), § 35(j).

History

Former §§ 1264, 1265. Former § 1264, relating to supplies and expenses at Montpelier, was derived from V.S. 1947, § 10,485; 1947, No. 202 , § 10,008; P.L. § 8983; 1933, No. 157 , § 8622; G.L. § 7394; 1917, No. 17 , § 15; 1917, No. 32 , § 1; 1917, No. 115 , § 10; 1917, No. 128 , § 4; 1917, No. 160 , § 8; 1917, No. 17 1, § 2; 1917, No. 244 , § 4; 1917, No. 248 , § 1; 1917, No. 254 , §§ 7142, 7165; 1915, No. 1 , § 176; 1915, No. 64 , §§ 4, 180; 1915, No. 1 64, § 29; 1915, No. 224 , § 2; 1915, No. 234 ; 1912, No. 247 , § 1; 1912, No. 253 , § 2; 1910, No. 240 , § 2; 1910, No. 241 ; 1908, No. 116 , § 21; 1908, No. 417 ; P.S. §§ 6148, 6172, 6195; 1906, No. 43 , § 3; 1906, No. 111 , § 13; 1906, No. 126 , §§ 6, 28; 1906, No. 218 , § 1; 1902, No. 68 , § 11; 1900, No. 69 , §§ 6, 11; 1898, No. 132 , § 1; 1898, No. 136 , § 2; 1896, No. 123 , §§ 1, 3; V.S. §§ 597, 5332; 1888, No. 9 , § 4; 1886, No. 23 , § 15; 1884, No. 48 , § 2; R.L. §§ 3491, 3492; G.S. 28, § 129, 1855, No. 26 , § 9.

Former § 1265, relating to supplies and expenses elsewhere than Montpelier, was derived from V.S. 1947, § 10,486; 1947, No. 202 , § 10,009; P.L. § 8984; 1933, No. 157 , § 8623; G.L. § 7394; 1917, No. 17 , § 15; 1917, No. 32 , § 1; 1917, No. 115 , § 10; 1917, No. 128 , § 4; 1917, No. 160 , § 8; 1917, No. 17 1, § 2; 1917, No. 244 , § 4; 1917, No. 248 , § 1; 1917, No. 254 , §§ 7142, 7165; 1915, No. 1 , § 176; 1915, No. 64 , §§ 4, 180; 1915, No. 1 64, § 29; 1915, No. 224 , § 2; 1915, No. 234 ; 1912, No. 247 , § 1; 1912, No. 253 , § 2; 1910, No. 240 , § 2; 1910, No. 241 ; 1908, No. 116 , § 21; 1908, No. 417 ; P.S. §§ 6148, 6172, 6195; 1906, No. 43 , § 3; 1906, No. 111 , § 13; 1906, No. 126 , §§ 6, 28; 1906, No. 218 , § 1; 1902, No. 68 , § 11; 1900, No. 69 , §§ 6, 11; 1898, No. 132 , § 1; 1898, No. 136 , § 2; 1896, No. 123 , §§ 1, 3; V.S. §§ 597, 5332; 1888, No. 9 , § 4; 1886, No. 23 , § 15; 1884, No. 48 , § 2; R.L. §§ 3491, 3492; G.S. 28, § 129; 1855, No. 26 , § 9.

§ 1266. Clerical assistance.

Each department, board, or commission, unless otherwise specifically provided, is empowered to employ such assistance, clerical or otherwise, as the Governor deems necessary and, subject to his or her approval, to fix the compensation to be paid therefor.

History

Source.

V.S. 1947, § 10,487. P.L. § 8985. 1933, No. 157 , § 8624.

Notes to Opinions

Assistants.

Public Service Commission may appoint one principal assistant, provided Governor deems such assistant necessary for proper administration of Commission. 1956-58 Vt. Op. Att'y Gen. 162.

Construction with other laws.

This section must be read in connection with 26 V.S.A. § 2252 . 1964-66 Vt. Op. Att'y Gen. 205.

This section and 3 V.S.A. § 207 have been largely supplanted by personnel acts, but they remain in effect insofar as exempt positions are concerned. 1956-58 Vt. Op. Att'y Gen. 162.

§ 1267. Mileage; reimbursement.

Reimbursement for mileage shall be a subject of collective bargaining as defined in 3 V.S.A. § 904(a) .

HISTORY: Added 1975, No. 118 , § 97; amended 1977, No. 109 , § 32, eff. July 1, 1979.

History

Amendments

—1977. Amended generally to provide reimbursement for mileage shall be a subject of collective bargaining.

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.

HISTORY: 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.

  1. 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.
  2. During the first year of the legislative biennium, the Legislature 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.
  3. 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, after consultation with the Secretary of Administration, no 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. The Pay Act Committee shall meet no 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 no later than January 15 for further consideration.

HISTORY: Added 2001, No. 116 (Adj. Sess.), § 7, eff. May 28, 2002.

§ 1282. Officer compensation; voluntary decrease.

An officer whose compensation is established by this chapter may choose to be compensated at a lower rate.

HISTORY: 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 such official, unless other provision therefor is made by law.

History

Source.

V.S. 1947, § 10,567. P.L. § 9063. 1933, No. 157 , § 8700.

CROSS REFERENCES

Fees defined, see 1 V.S.A. § 115 .

Town fee report and request, see § 611 of this title.

§ 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 such fees a receipt therefor, if so requested, which receipt shall show the items of such fees, the sum thereof together with the date when such services were rendered, and the date of payment.

History

Source.

V.S. 1947, § 10,568. P.L. § 9064. G.L. §§ 7418, 7428. P.S. §§ 6216, 6226. V.S. §§ 5372, 5381. R.L. §§ 4516, 4531. G.S. 125, § 8. G.S. 126, § 28. R.S. 106, § 7. 1802, p. 76.

§ 1403. Justices to make rules for fees.

  1. 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.
  2. [Repealed.]

HISTORY: 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.

History

Source.

V.S. 1947, § 579. P.L. § 526. G.L. § 613. P.S. § 448. 1906, No. 63 , § 18. V.S. § 334. R.L. § 246. G.S. 9, §§ 6, 7. 1845, No. 32 , §§ 1, 2. 1991, No. 257 (Adj. Sess.), § 7.

Amendments

—2017 (Adj. Sess.). Subsec. (b): Repealed effective July 1, 2019.

—1991 (Adj. Sess.). Subsec. (b): Inserted “a sheriff or deputy sheriff” following “warden” in two places.

—1987. Subsec. (b): Inserted “a municipal police officer” preceding “a fish and game” in the first sentence and “municipal police officer” preceding “fish and game” in the second sentence.

—1975. Subsec. (a): Designated existing section as subsec. (a).

—1975. Subsec. (b): Added.

—1971 (Adj. Sess.). Provided for making rules for certain fees by supreme court alone.

—1969 (Adj. Sess.). Substituted “court administrator” for “finance director”.

—1959 (Adj. Sess.). Substituted “finance director” for “auditor of accounts”.

§ 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.

HISTORY: Amended 1971, No. 185 (Adj. Sess.), § 236(a), (b), eff. March 29, 1972.

History

Source.

V.S. 1947, § 10,464. P.L. § 8960. 1933, No. 157 , § 8599. 1929, No. 137 , § 1. 1921, No. 230 , § 1. G.L. § 7375. 1915, No. 1 , § 176. 1908, No. 189 . P.S. § 6176. 1906, No. 63 , § 17. 1896, No. 117 , § 1. V.S. § 5333. 1886, No. 55 , § 1. R.L. § 4479. 1866, No. 71 .

Amendments

—1971 (Adj. Sess.). Changed “justice, judge or chancellor” to “justice or judge”. See note under 4 V.S.A. § 219 .

§ 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.

HISTORY: Amended 1993, No. 170 (Adj. Sess.), § 12.

History

Amendments

—1993 (Adj. Sess.). Substituted “$2.00” for “1.00” in the second sentence.

§ 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.

HISTORY: Added 1965, No. 101 , § 2.

§ 1407. Costs to be borne by the State.

  1. 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.
  2. 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. § 4089 , 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.
    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. (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.
  3. A victim, at his or her own expense, may obtain copies of the results of an examination under this section.

HISTORY: 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.

History

Amendments

—2015. Section amended generally.

—2007 (Adj. Sess.). Added the third sentence.

—2005 (Adj. Sess.). Added the fourth sentence.

—1993. Added the third sentence.

CROSS REFERENCES

Compensation to victims of crime, see 13 V.S.A. chapter 167, subchapter 1.

§ 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.

HISTORY: Added 1987, No. 222 (Adj. Sess.), § 3.

Subchapter 2. State Fees in Judicial Proceedings

History

Purpose of increased court filing fees. 1985, No. 54 , § 1, provided: “It is the intent of the general assembly that the increases in court filing fees under this act [which amended §§ 1431, 1432 and 1434 of this title] will generate additional revenue to be used to provide legal assistance for indigents in civil matters.”

§ 1431. Fees in Supreme and Superior Courts.

  1. 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.
    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. (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.
    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. (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.
      1. Except as provided in subdivision (B) of this subdivision (2), fees paid to the clerk pursuant to this subsection 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. (2) (A) Except as provided in subdivision (B) of this subdivision (2), fees paid to the clerk pursuant to this subsection 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.
      2. In a county where court facilities are provided by the State, all fees paid to the clerk pursuant to this subsection shall be for the benefit of the State.
  2. 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.
  3. 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 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 .
  4. 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.
  5. 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.
  6. 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.

HISTORY: 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.

History

Source.

1953, No. 104 . 1951, No. 226 , § 2. V.S. 1947, § 10,493. P.L. § 8991. G.L. § 7405. 1912, No. 249 . P.S. § 6208. 1902, No. 153 , §§ 2, 5. V.S. § 5363. 1890, No. 28 . 1888, No. 50 . 1886, No. 61 . 1884, No. 61 . 1884, No. 129 , § 2. R.L. §§ 988, 4522. 1878, No. 41 . G.S. 126, § 30.

Editor’s note

—2019. The text of this section is based on the harmonization of two amendments. During the 2019 session, this section was amended twice, by Act Nos. 32 and 70, resulting in two versions of this section. In order to reflect all of the changes enacted by the Legislature during the 2019 session, the text of Act Nos. 32 and 70 was merged to arrive at a single version of this section. The changes that each of the amendments made are described in the amendment notes set out below.

Amendments

—2019 (Adj. Sess.). Subdiv. (b)(1): Substituted “(7)” for “(5)”.

Subdiv. (b)(7): Added.

—2019. Subsec. (d): Act No. 70 deleted “appeal” following “fee of $120.00 for every” in the first sentence, and inserted “or the appeal of a small claims decision” in the second sentence.

Subsec. (e): Act No. 32, deleted “and motions for sealing or expungement in the Criminal Division pursuant to 13 V.S.A. § 7602 ,” following “reopen civil suspensions” in the first sentence, and added the last sentence. Act No. 70 deleted “and” following “small claims actions,” added “and motions to confirm the sale of property in foreclosure” at the end of the first sentence.

—2017. Subdiv. (b)(6): Inserted “or modification” following “enforcement”.

Subsec. (e): Inserted “or motions to reopen existing cases in the Probate Division of the Superior Court,” preceding “there shall be”; and inserted “and estates” following “actions”.

—2015. Raised fees throughout the section and added the second sentence in subsec. (e).

—2013 (Adj. Sess.). Section amended generally.

—2013. Section amended generally.

—2011 (Adj. Sess.) Subdiv. (b)(2): Rewrote one sentence as two by substituting a period for “however;” at the end of the current first sentence and adding “if one or both of the parties are residents, and $150.00 if neither party is a resident” following “$75.00” in the second sentence.

—2009 (Adj. Sess.) Section heading: Act No. 154, § 203 inserted “and” preceding “superior” and deleted “district, family, and environmental” thereafter.

Subsec. (b): Act No. 154, § 203 added “Except as provided in subdivisions (2)-(5) of this subsection” preceding “prior” and deleted “or environmental court” following “superior court” in subdiv. (1), substituted “superior court” for “family court” in subdivs. (2)-(5), and substituted “the fee under subdivision (4) shall” for “the subdivision (4) fee shall” in subdiv. (5).

Subsec. (c): Act No. 154, § 203a added the subdiv. (1) designation and added subdiv. (2), and in subdiv. (1), deleted “for the benefit of the county” following “paid to the clerk”’ in the first sentence and second sentences, and substituted “clerk” for “county” following “payable to the” in the third sentence.

Act No. 154, § 203b, effective February 1, 2011, rewrote subdiv. (2) as subdivs. (2)(A) and (B).

Subsec. (d): Act No. 154, § 203 substituted “superior court” for “superior, environmental, or district court” and “superior court” for “or environmental court” in the first sentence, and “superior court” for “family court” in the second sentence.

Subsec. (e): Act No. 154, § 203 substituted “superior court” for “environmental, or district court”.

Subsec. (g): Act No. 154, § 203 substituted “superior court” for “district court” in the second sentence.

Subsec. (h): Act No. 154, § 203 inserted “or” preceding “Vermont Rules” and deleted “or District Court Civil Rules 3.1,” following “Appellate Procedure 24(a)” in the first sentence.

—2007 (Adj. Sess.). Subsec. (a): Substituted “$250.00” for “$225.00”.

Subdivs. (b)(1) and (2): Substituted “$250.00” for “$225.00”.

Subdiv. (b)(4): Amended generally.

Subsecs. (c), (d): Amended generally.

Subsec. (e): Substituted “$75.00” for “$50.00”, and deleted “for which the fee shall be $25.00 in lieu of all other fees not otherwise set forth in this section” at the end of the subsection.

Subsec. (f): Substituted “$50.00” for “$30.00” near the beginning, and added “and shall be paid to the clerk of the bureau for the benefit of the state” at the end.

Subsec. (g): Added the subsec. (g) designation; substituted “$35.00” for “$25.00” in the first sentence and substituted “$100.00” for “$75.00” in the last sentence.

Subsec. (h): Redesignated former subsec. (g) as present subsec. (h).

—2003 (Adj. Sess.). Section amended generally.

—1997 (Adj. Sess.). Subsec. (f): Substituted “judicial bureau” for “traffic and municipal ordinance bureau”.

—1995 (Adj. Sess.) Section amended generally.

—1989 (Adj. Sess.). Deleted “and” preceding “superior” and inserted “district and family” thereafter in the section heading, designated the existing provisions of the section as subsec. (a) and in that subsection deleted “or superior court” following “supreme court” and substituted “$100.00” for “$35.00” preceding “in lieu”, and added subsecs. (b)-(f).

—1985. Substituted “or” for “and” preceding “superior” and “$35.00” for “$25.00” following “fee of”.

—1975 (Adj. Sess.). Omitted reference to county and chancery courts and increased fee from “$15” to “$25”.

—1969. Added reference to supreme court.

—1967. Section amended generally by setting a flat fee of $15.

CROSS REFERENCES

Entry of appeal on docket in Supreme Court upon payment of entry fee, see V.R.A.P. 12.

ANNOTATIONS

Appeal fees.

Filing by clerk of court of chancery of motion for appeal instantly transfers cause to Supreme Court, and fact that “entry fee” required by section to be paid to clerk of court before entry of case in Supreme Court was not paid until after adjournment of the term of that Court held next after motion for appeal was filed, was not ground for refusing to docket appeal; and adjournment of that Court before payment of fee did not remand case to court of chancery. Lafountain & Staples v. Wilder & Nichols, 86 Vt. 301, 85 A. 5, 1912 Vt. LEXIS 186 (1912).

Indigency.

Libellant for divorce had due process right to have libel and petition claiming indigency filed in county court without payment of fee and proceed with her case to conclusion if hearing on indigency should be in her favor. Miserak v. Terrill, 130 Vt. 7, 285 A.2d 753, 1971 Vt. LEXIS 214 (1971).

Where a libellant for divorce claims indigency upon filing action, hearing should be held to determine indigency, and it is libellant’s indigency, not libellee’s, that is to be decided. Miserak v. Terrill, 130 Vt. 7, 285 A.2d 753, 1971 Vt. LEXIS 214 (1971).

When a libel for divorce is allowed, due to indigency, to be filed without payment of fee, manner of service of the libel rests wholly within the power of the court; service in hand by a State official is not necessary, and service may be by mail to libellant’s last known address. Miserak v. Terrill, 130 Vt. 7, 285 A.2d 753, 1971 Vt. LEXIS 214 (1971).

Judgment fee.

Where court, after full hearing of case, cannot agree upon judgment and continues the suit, the clerk will charge a judgment fee as in cases where judgments are rendered. Walker v. Sargeant, 13 Vt. 352, 1841 Vt. LEXIS 70 (1841).

Review of trial fees.

Where plaintiff has paid, under protest, trial fee for assessment of damages by clerk and excepted to order of presiding judge adjudging that such fee was payable, the plaintiff cannot, after defendant has been defaulted, by exception bring the order to Supreme Court for review. Bagley v. Tudor, 108 Vt. 163, 183 A. 335, 1936 Vt. LEXIS 166 (1936).

Transfer on exceptions.

Transfer upon a bill of exceptions is not dependent upon action of clerk in making or withholding docket entries, nor upon prepayment of entry fee, but filing of exceptions works transfer, provision of this section relating to prepayment of such fee being for benefit of clerk who is accountable therefor to State, and to aid in its collection, but not forbidding entry in advance of payment. Seaboard Nat'l Bank v. Fisher, 98 Vt. 20, 124 A. 588, 1924 Vt. LEXIS 130 (1924).

Where bill of exceptions was not timely filed, attorney’s position that he relied that judge signing the bill would forward it to the clerk of the appellate court, was unwarranted in view of requirement of section that fee accompany the bill. Hotel Vermont Co. v. Moore's Est., 90 Vt. 33, 96 A. 382, 1916 Vt. LEXIS 231 (1916).

Cited.

Cited in Tatro v. Fee, 148 Vt. 634, 535 A.2d 783, 1987 Vt. LEXIS 532 (1987) (mem.).

Notes to Opinions

Appeal from Employment Security Board.

Entry fee must be paid on entering appeal to county court from Employment Security Board. 1962-64 Vt. Op. Att'y Gen. 484.

Trial fees.

Jury fee should be paid in each case where two or more cases are tried together. 1932-34 Vt. Op. Att'y Gen. 73.

No second trial fee is due when a case is tried second time, due to reversal by Supreme Court, disagreement in previous trial, or for any other reason. 1932-34 Vt. Op. Att'y Gen. 73.

Trial fee should be paid clerk of the court before commencement of the trial and before jury are called to be examined as to their qualifications. 1932-34 Vt. Op. Att'y Gen. 74.

§ 1432. Repealed. 1989, No. 221 (Adj. Sess.), § 21(b).

History

Former § 1432. Former § 1432, relating to District Court fees, was derived from V.S. 1947, § 10,494; P.L. § 8992; G.L. § 7438; 1915, No. 91 , § 21; P.S. § 6238; 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1967, No. 119 , § 4; 1973, No. 106 , § 10, eff. 30 days from April 25, 1973; 1985, No. 54 , § 3.

§ 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.

HISTORY: Added 1961, No. 29 , eff. March 17, 1961.

History

References in text.

Section 1474 of this title, referred to in this section, was repealed by 2009, No. 154 (Adj. Sess.), § 238, effective July 1, 2010.

Section 1432 of this title, referred to in this section, was repealed by 1989, No. 221 (Adj. Sess.), § 21 (b), and is now covered under § 1431.

ANNOTATIONS

Employment Security Board.

The Vermont Employment Security Board is not required to pay an entry fee on its appeal to the Supreme Court. Nurmi v. Vermont Employment Security Board, 124 Vt. 42, 197 A.2d 483, 1963 Vt. LEXIS 28 (1963).

§ 1434. Probate cases.

  1. 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:

    PARASTAT=“s” DESISTAT=“”>

    1. PARASTAT=“s” DESISTAT=“”>Estates of $10,000.00 or less $50.00 (2) PARASTAT=“s” DESISTAT=“”>Estates of more than $10,000.00 to not more than $50,000.00 $110.00 (3) PARASTAT=“s” DESISTAT=“”>Estates of more than $50,000.00 to not more than $150,000.00 $265.00 (4) PARASTAT=“s” DESISTAT=“”>Estates of more than $150,000.00 to not more than $500,000.00 $500.00 (5) PARASTAT=“s” DESISTAT=“”>Estates of more than $500,000.00 to not more than $1,000,000.00 $1,000.00 (6) PARASTAT=“s” DESISTAT=“”>Estates of more than $1,000,000.00 to not more than $5,000,000.00 $1,750.00 (7) PARASTAT=“s” DESISTAT=“”>Estates of more than $5,000,000.00 to not more than $10,000,000.00 $2,500.00 (8) PARASTAT=“s” DESISTAT=“”>Estates of more than $10,000,000.00 $3,250.00 (9) PARASTAT=“s” DESISTAT=“”>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) PARASTAT=“s” DESISTAT=“”>Trusts of $10,000.00 or less $50.00 (B) PARASTAT=“s” DESISTAT=“”>Trusts of $10,001.00 to not more than $50,000.00 $110.00 (C) PARASTAT=“s” DESISTAT=“”>Trusts of $50,001.00 to not more than $150,000.00 $265.00 (D) PARASTAT=“s” DESISTAT=“”>Trusts of $150,001.00 to not more than $500,000.00 $500.00 (E) PARASTAT=“s” DESISTAT=“”>Trusts of $500,001.00 to not more than $1,000,000.00 $1,000.00 (F) PARASTAT=“s” DESISTAT=“”>Trusts of $1,000,001.00 to not more than $5,000,000.00 $1,750.00 (G) PARASTAT=“s” DESISTAT=“”>Trusts of $5,000,001.00 to not more than $10,000,000.00 $2,500.00 (H) PARASTAT=“s” DESISTAT=“”>Trust of more than $10,000,000.00 $3,250.00 (10) PARASTAT=“s” DESISTAT=“”>[Repealed.] (11) PARASTAT=“s” DESISTAT=“”>Annual accounts on trusts $85.00 (12) PARASTAT=“s” DESISTAT=“”>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) PARASTAT=“s” DESISTAT=“”>Adoptions and relinquishments as part of an adoption proceeding $150.00 (14) Relinquishments, separate from adoptions $100.00 (15) PARASTAT=“s” DESISTAT=“”>Guardianships for minors $150.00 (16) PARASTAT=“s” DESISTAT=“”>Guardianships for adults $150.00 (17) PARASTAT=“s” DESISTAT=“”>Petitions for change of name $150.00 (18) PARASTAT=“s” DESISTAT=“”>Filing of a will for safekeeping $30.00 (19) PARASTAT=“s” DESISTAT=“”>Filing of subsequent will for safekeeping, same Probate Division or transfer to another Probate Division $30.00 (20) PARASTAT=“s” DESISTAT=“”>Corrections for vital records $40.00 (21) PARASTAT=“s” DESISTAT=“”>Orders of authorization pursuant to 18 V.S.A. § 5144(a)(2)(C) $50.00 (22) PARASTAT=“s” DESISTAT=“”>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) PARASTAT=“s” DESISTAT=“”>Petitions concerning advance directives pursuant to 18 V.S.A. § 9718 $100.00 (24) PARASTAT=“s” DESISTAT=“”>Civil actions brought pursuant to 18 V.S.A. chapter 107, subchapter 3. $100.00 (25) PARASTAT=“s” DESISTAT=“”>Petitions for partial decree $105.00 (26) PARASTAT=“s” DESISTAT=“”>Petitions for license to sell or convey real estate $100.00 (27) PARASTAT=“s” DESISTAT=“”>Petitions for license to sell or convey personal property $100.00 (28) PARASTAT=“s” DESISTAT=“”>[Repealed.] (29) PARASTAT=“s” DESISTAT=“”>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) PARASTAT=“s” DESISTAT=“”>Affidavit procedure for small estates pursuant to Rule 80.3(h) of the Vermont Rules of Probate Procedure $50.00 (31) PARASTAT=“s” DESISTAT=“”>[Repealed.] (32) PARASTAT=“s” DESISTAT=“”>Petitions to obtain a birth order pursuant to or $100.00 15C V.S.A. § 708(a) § 804(a) (33) PARASTAT=“s” DESISTAT=“”>Petitions to appeal the State Registrar’s denial of an application to amend a birth or death certificate pursuant to $150.00 18 V.S.A. § 5073(b) (34) PARASTAT=“s” DESISTAT=“”>Registration of foreign guardianship order $90.00

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  2. 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.
  3. A fee of $5.00 shall be paid for each additional certification of appointment of a fiduciary.

HISTORY: 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.

History

Source.

1957, No. 300 , § 3. V.S. 1947, § 10,542. 1947, No. 202 , § 10,062. P.L. § 9037. 1921, No. 239 , § 1. 1919, No. 215 . G.L. § 7420. 1917, No. 250 . 1917, No. 254 , § 7192 P.S. § 6218. R. 1906, § 6085. 1900, No. 107 , § 1. 1896, No. 120 , § 1. V.S. § 5373. 1892, No. 47 . R.L. §§ 2545, 4524. 1880, No. 137 , § 10. 1878, no. 254, § 7192. P.S. § 6218. R. 1906, § 6085. 1900, No. 107 , § 1. 1896, No. 120 .

Amendments

—2021. Subdiv. (a)(34): Added.

—2019 (Adj. Sess.). Subdiv. (a)(28): Repealed.

—2019. Subdivs. (a)(26) and (a)(27), inserted “or convey” following “to sell”.

Subdiv. (a)(31): Repealed.

Subdivs. (a)(32) and (a)(33): Added.

—2017 (Adj. Sess.). Subdiv. (a)(21): Inserted “(a)(2)(C)” following “§ 5144”.

—2017. Subdiv. (a)(12): Substituted “appointment of the administrator or executor” for “opening of the estate” following “following the”.

Subdiv. (a)(29)-(a)(31): Added.

—2015. Subsec. (a): Amended generally.

—2013 (Adj. Sess.). Subsec. (a): Amended generally.

—2013. Subsec. (b): Substituted “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” for “For economic cause, the probate judge may waive this fee.”

—2009 (Adj. Sess.) Subsec. (a): Inserted “division of the superior” following “probate”, raised the fees in subdivs. (14), (15) and (16), and added subdivs. (23) and (24).

—2009. Subdivs. (9)-(11): Rewritten.

Subdivs. (21) and (22): Deleted; and redesignated former subdivs. (23) and (24) as present subdivs. (21) and (22).

—2007 (Adj. Sess.). Subsec. (a): Amended generally.

—2007. Subsec. (a): Added subdiv. (20).

—2005 (Adj. Sess.). Subdiv. (a)(8): Substituted “following the opening of the estate” for “following the death of the decedent”.

Subdivs. (a)(17) through (a)(19): Added.

—2003 (Adj. Sess.). Subsec. (a): Amended generally.

—1995 (Adj. Sess.) Subsec. (a): Amended generally.

Subsec. (c): Substituted “$5.00” for “$2.00”.

—1989 (Adj. Sess.) Section amended generally.

—1985. Subdiv. (1): Substituted “$35.00” for “$25.00” following “fee of” in the first sentence.

—1981. Provided for a uniform entry fee in subdivs. (1) and (2) and deleted subdivs. (3) to (12) which itemized various fees.

—1971. Amended section generally and reduced subdivisions from 29 to 12.

—1969 (Adj. Sess.) Subdiv. (23): Added reference to chapter 185 of Title 18.

Subdiv. (24): Repealed.

Subdiv. (25): Amended generally.

CROSS REFERENCES

Illegal fees, see § 1145 of this title.

ANNOTATIONS

Constitutionality.

Case holding graduated probate “distribution fee” formerly imposed by this section to be a tax violative of Proportional Contribution Clause of State constitution applies to such taxes paid before date of the case by an estate not closed by final decree. In re Estate of Webb, 136 Vt. 582, 397 A.2d 81, 1978 Vt. LEXIS 675 (1978).

Where there is no apparent legislative intent to impose a tax, where fee rates vary greatly and arbitrarily without apparent reason, and where the amount of levy varies greatly depending solely upon the technical process used to achieve a passing of decedent’s interest upon death, there is a palpable violation of the Proportional Contribution Clause contained in State constitution, and the levy of a distribution fee as a tax cannot be sustained. In re Estate of Eddy, 135 Vt. 468, 380 A.2d 530, 1977 Vt. LEXIS 659 (1977).

Distribution fees.

Distribution charge imposed by this section, either before or after amendment, is on its face totally disproportionate to any services rendered by the Probate Court, and if its imposition, at the rate of either 1/2% or 1%, is to be justified, it must be justified as a tax. In re Estate of Eddy, 135 Vt. 468, 380 A.2d 530, 1977 Vt. LEXIS 659 (1977).

Settlement proceeds for wrongful death are not part of decedent’s estate, or of the residue therein, for purposes of computing decree fee of this section. Bassett v. Vt. Tax Dept., 135 Vt. 257, 376 A.2d 731, 1977 Vt. LEXIS 602 (1977).

Fee for letters testamentary.

Viewed as either a fee or a tax, charge for granting letters testamentary was improperly imposed since it was imposed for a particular act, the issuance of letters testamentary, and act did not occur until after repeal of the charge. In re Estate of Eddy, 135 Vt. 468, 380 A.2d 530, 1977 Vt. LEXIS 659 (1977).

Where repealed fee for issuance of letters testamentary was assessed improperly, proper fee to be assessed was amended fee of $15.00, imposed before the letters testamentary were issued. In re Estate of Eddy, 135 Vt. 468, 380 A.2d 530, 1977 Vt. LEXIS 659 (1977).

Limitation of actions.

Statute providing that an action to recover money paid under protest for taxes shall be commenced within one year after the cause of action accrues did not apply to what Legislature called, and considered to be, a fee, when it passed former provision of this section providing for a graduated probate distribution fee imposed upon final Probate Court decree, and that court later found the fee to be a tax in violation of Proportional Contribution Clause of State constitution did not make it a tax for purposes of the statute of limitations. In re Estate of Webb, 136 Vt. 582, 397 A.2d 81, 1978 Vt. LEXIS 675 (1978).

Notes to Opinions

Distribution fees.

Legislature intended to require distribution fee to be measured by the value of residue to be assigned, either by decree of court or by voluntary act of executor or administrator, to persons entitled to same under terms of will or under statute of distribution. 1936-38 Vt. Op. Att'y Gen. 568.

Where administrator converted real and personal property into cash, residue would be cash on hand at time of final accounting after payment of charges required by 14 V.S.A. § 1721 to be assigned to persons entitled to same under will or statute of distribution; and where that part of estate which remains after payment of charges required by 14 V.S.A. § 1721 to be assigned to persons entitled to same under will or statute of distribution, is in stocks and bonds, such stocks and bonds are the residue upon which decree fee must be paid, and market value of such residue at time of final accounting is measure by which decree fee is determined. 1936-38 Vt. Op. Att'y Gen. 91.

Judge’s fees.

There is nothing in this section which authorizes probate judge to charge fees for his own use for his time and services against estates under probate in his court. 1956-58 Vt. Op. Att'y Gen. 32.

§ 1434a. Repealed by its own terms.

History

Former § 1434a. Former § 1434a, relating to surcharge on fees, was derived from 2009, No. 154 (Adj. Sess.), § 204a.

§ 1435. Repealed. 1981, No. 33, § 3.

History

Former § 1435. This section relating to fee exception in the settlement of estate of deceased persons, formerly § 1434, was derived from V.S. 1947, § 10,543: P.L. § 9038: G.L. § 7421: P.S. § 6219: 1896, No. 120 , § 2: V.S. § 5374: 1882, No. 61 .

§ 1436. Repealed. 2017, No. 160 (Adj. Sess.), § 5(4).

History

Former § 1436. Former § 1436, relating to fee for certification of appointment as notary public, was derived from 1987, No. 1 , § 1 and amended by 1995, No. 181 (Adj. Sess.), § 13; 1997, No. 121 (Adj. Sess.), § 23; and 2009, No. 154 (Adj. Sess.), § 205.

Subchapter 3. Taxation of Costs

§ 1471. Taxation of costs.

  1. 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.
  2. 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.

HISTORY: 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.

History

Source.

1951, No. 236 . V.S. 1947, § 10,537. P.L. § 9032. G.L. § 7435. P.S. § 6234. R. 1906, § 6101. 1902, No. 153 , § 7. V.S. § 5389. 1890, No. 28 . 1886, No. 61 . 1884, No. 129 , § 2. R.L. §§ 988, 4508. 1878, No. 41 . G.S. 126, §§ 35, 36.

Amendments

—2009 (Adj. Sess.) Subsec. (a): Inserted “and” preceding “superior” and deleted “family, district, or environmental ” thereafter.

—1997 (Adj. Sess.). Subsec. (a): Substituted “judicial bureau” for “traffic and municipal ordinance bureau”.

—1995 (Adj. Sess.) Designated the existing text of the section as subsec. (a) and substituted “superior, family, district, or environmental courts or the traffic and municipal ordinance bureau” for “or superior court” in that subsection and added subsec. (b).

—1977 (Adj. Sess.) Section amended generally.

—1973. Section amended generally.

CROSS REFERENCES

Taxation of costs following disposition in Superior Court, see V.R.C.P. 54.

Taxation of costs following disposition of appeal in Supreme Court, see V.R.A.P. 39.

ANNOTATIONS

Attorney’s fees.

Attorney’s fees are a litigation expense, not a “costs,” and, therefore, would not be covered under a judgment order which purported to award costs to the defendants. State v. Whitingham School Board, 140 Vt. 405, 438 A.2d 394, 1981 Vt. LEXIS 617 (1981).

Where case is heard in Supreme Court, but not decided, party prevailing in that Court is entitled to tax an attorney fee for such hearing. Pollard v. Wheelock, 20 Vt. 370, 1848 Vt. LEXIS 49 (1848).

Attorney’s fee not taxable upon hearing before referee. Baker v. Blodget, 1 Vt. 141, 1828 Vt. LEXIS 9 (1828).

Construction.

Provisions of section, which are only statutory provisions regarding taxation of term fees, travel fees, or attorney’s fees, refer to civil cases only, hence such costs are not recoverable in criminal cases. In re Pierce, 103 Vt. 438, 156 A. 137, 1931 Vt. LEXIS 189 (1931).

Section was not intended to restrict, but rather to enlarge, costs that would otherwise be recoverable, and so fact it makes no mention of cost of transcript does not preclude taxation thereof, where transcript is made part of record. Comstock's Adm'r v. Jacobs, 89 Vt. 510, 96 A. 4, 1915 Vt. LEXIS 237 (1915).

Costs generally.

Costs were ordinarily taxed by clerk of county court but county court had authority to perform this task if it desired. Patch v. Lathrop, 116 Vt. 151, 70 A.2d 605, 1950 Vt. LEXIS 124 (1950).

Costs on appeal.

When judgment is arrested in Supreme Court, defendant is entitled to costs in that Court and in court below. Baker v. Shurman, 73 Vt. 26, 50 A. 633, 1901 Vt. LEXIS 119 (1901).

In respect to costs on arrest of judgment the virtual holding of Posnett v. Marble, 62 Vt. 481, is approved, and the earlier practice and the dictum in Whitcomb v. Wolcott, 21 Vt. 377, are disapproved. Baker v. Shurman, 73 Vt. 26, 50 A. 633, 1901 Vt. LEXIS 119 (1901).

Where suit commenced in county court was carried to Supreme Court upon exceptions, and judgment of county court was reversed, proceeding in Supreme Court was considered a distinct matter, beginning and ending in itself; and party prevailing in Supreme Court was allowed to tax costs without reference to final event of case. Pollard v. Wheelock, 20 Vt. 370, 1848 Vt. LEXIS 49 (1848).

Where plaintiff succeeded in writ of error and obtained final judgment he was entitled to costs of writ of error, without reference to amount recovered. Baker v. Blodget, 1 Vt. 141, 1828 Vt. LEXIS 9 (1828).

Habeas corpus.

Provision that designated fees “shall be taxed in the bill of costs to the recovering party in the county or supreme court” does not give costs to respondent who prevails on habeas corpus proceedings, and this is clearly so in view of V.S. 1947, §§ 2111 and 2116 (former 12 V.S.A. §§ 4043 and 4046), which contain special provisions relating to costs in the case of other prerogative writs. In re Jacobs, 87 Vt. 454, 89 A. 634, 1914 Vt. LEXIS 256 (1914).

Judgment fees.

Where court, after full hearing of case, did not agree upon judgment and continued suit, clerk charged judgment fee as in cases where judgments are rendered. Walker v. Sargeant, 13 Vt. 352, 1841 Vt. LEXIS 70 (1841).

Tort actions.

Upon judgment in favor of two or more defendants in an action of tort, they will be allowed, in the taxation of their costs, separate travel and term fees but only one attorney fee for the same trial. Hale v. Merrill, 27 Vt. 738, 1855 Vt. LEXIS 112 (1855).

Travel fees.

Defendant in suit before justice of the peace, who does not attend trial, can only tax for travel within this State; no party in any court in this State is allowed to tax for travel beyond limits of the State. Mattoon v. Mattoon, 22 Vt. 450, 1850 Vt. LEXIS 57 (1850).

Witness fees.

A party who testifies can tax no fees as a witness. Hale v. Merrill, 27 Vt. 738, 1855 Vt. LEXIS 112 (1855).

Cited.

Cited in State v. Champlain Cable Corp., 147 Vt. 436, 520 A.2d 596, 1986 Vt. LEXIS 437 (1986).

§ 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.

History

Source.

V.S. 1947, § 2190. 1947, No. 202 , § 2224. P.L. § 2138. G.L. § 2327. P.S. § 2049. V.S. § 1694. R.L. § 1452. G.S. 125, § 3. R.S. 106, § 3. 1798, p. 15.

§ 1473. Repealed. 1969, No. 131, § 36, eff. April 23, 1969.

History

Former § 1473. Former § 1473, relating to taxable costs in county court criminal cases, was derived from V.S. 1947, § 10,499: P.L. § 8995: G.L. § 7406: 1917, No. 254 , § 7179: P.S. § 6209: 1902, No. 153 , §§ 3, 5: V.S. § 5364: R.L. § 4523: G.S. 126, § 19.

§ 1474. Repealed. 2009, No. 154 (Adj. Sess.), § 238, effective June 3, 2010.

History

Former § 1474. Former § 1474, relating to the costs and fees allowed in district courts, was derived from V.S. 1947, § 10,539; P.L. § 9034; G.L. § 7439; 1915, No. 91 , § 22; P.S. § 6238 and amended by 1965, No. 194 , § 10

§ 1475. Repealed. 1969, No. 131, § 36, eff. April 23, 1969.

History

Former § 1475. Former § 1475, relating to district court costs in criminal causes, was derived from 1965, No. 194 , § 10: V.S. 1947, § 10,500: P.L. § 8996: G.L. § 7407: 1917, No. 254 , § 7180: 1915, No. 91 , § 23: P.S. § 6237: 1906, No. 208 , § 2.

Record fee, prior law. V.S. 1947, § 10,501, amended by 1949, No. 257 , § 1, derived from P.L. § 8997 and 1921, No. 244 , § 1, was repealed by 1957, No. 290 , § 3. See § 1146 of this title.

State’s attorney fees, prior law. V.S. 1947, § 10,502, derived from P.L. § 8998: G.L. § 7408: P.S. § 6250: and 1906, No. 212 , §§ 2, 5, was repealed by 1957, No. 290 , § 3.

§ 1476. Repealed. 1977, No. 190 (Adj. Sess.).

History

Former § 1476. Former § 1476, relating to fees of justice courts, was derived from: Subsec. (a): V.S. 1947, § 10,540: P.L. § 9035: G.L. § 7437: P.S. § 6236: V.S. § 5391: R.L. § 4510: 1874, No. 79 : 1870, No. 93 .

Subsec. (b): V.S. 1947, § 10,497: 1947, No. 184 , § 2 and amended by 1969, No. 131 , § 31.

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.

HISTORY: 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.

History

Source.

1957, No. 298 , § 7. 1951, No. 233 , § 1. V.S. 1947, § 10,504. 1945, No. 190 , § 1. P.L. § 9000. 1921, No. 245 . 1919, No. 217 . G.L. § 7447. 1917, No. 254 , § 7219. 1912, No. 250 . 1910, No. 244 . P.S. § 6246. 1898, No. 135 , § 1. V.S. § 5399. R.L. § 4514. 1866, No. 18 .

Amendments

—2009 (Adj. Sess.) Deleted “and district” following “superior” in the section heading and in the introductory paragraph.

—1993. Deleted former subdiv. (1), redesignated former subdivs. (2) and (3) as subdivs. (1) and (2), respectively, and added “on request, unless the jurors were otherwise compensated by their employer” following “day” in those subdivisions and added a new subdiv. (3).

—1987 (Adj. Sess.) Added “and expenses” following “fees” in the introductory paragraph and rewrote subdiv. (1).

—1977 (Adj. Sess.) Increased mileage from 8 to 15 cents a mile; and increased per diem from $15 to $30 a day.

—1973 (Adj. Sess.) Changed “county court” to “superior court”.

—1969 (Adj. Sess.) Added reference to district court and increased fees.

CROSS REFERENCES

Reimbursement of personal expenses generally, see § 1261 of this title.

§ 1512. When per diem allowed.

Grand and petit jurors shall be allowed per diem pay only for the days when they appear in court.

History

Source.

V.S. 1947, § 10,505. P.L. § 9001. 1933, No. 157 , § 8639. G.L. § 7399. 1917, No. 254 , § 7173. 1915, No. 1 , § 199. 1908, No. 178 , §§ 5, 8. P.S. § 6203. V.S. § 5356. R.L. § 4498. 1878, No. 38 , § 1.

§ 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.

History

Source.

V.S. 1947, § 10,506. 1947, No. 202 , § 10,027. P.L. § 9002. 1933, No. 157 , § 8640. G.L. § 7399. 1917, No. 254 , § 7173. 1915, No. 1 , § 199. 1908, No. 178 , §§ 5, 8. P.S. § 6203. V.S. § 5356. R.L. § 4498. 1878, No. 38 , § 1.

§ 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 10,507. 1939, No. 235 , § 1. P.L. § 9003. 1921, No. 245 . 1919, No. 217 . G.L. § 7447. 1917, No. 254 , § 7219. 1912, No. 250 . 1910, No. 244 . P.S. § 6246. 1898, No. 135 , § 1. V.S. § 5399. R.L. § 4514. 1866, No. 18 .

Amendments

—2009 (Adj. Sess.) Deleted the last sentence.

—1973 (Adj. Sess.) Changed “county court” to “superior court”.

—1965. Substituted “district” for “municipal” courts.

—1959. Made section applicable to grand as well as petit jurors.

§ 1515. Repealed. 1987, No. 222 (Adj. Sess.), § 2.

History

Former § 1515. Former § 1515, relating to juror’s fees before a district court, was derived from 1957, No. 298 , § 8; 1951, No. 233 , § 2; V.S. 1947 § 10,508; 1945, No. 190 , § 2; P.L. § 9004; G.L. § 7448; 1917, No. 251 , § 1; 1915, No. 91 , § 20 and amended by 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967.

For present provisions relating to fees and expenses for Superior Court jurors, see §§ 1511-1514 of this title.

§§ 1516, 1517. Repealed. 1977, No. 190 (Adj. Sess.).

History

Former §§ 1516, 1517. Former § 1516 relating to fee of juror before justice of the peace was derived from V.S. 1947, § 10,509; 1943, No. 157 , § 1; P.L. § 9005; 1933, No. 157 , § 8643; G.L. § 7449; P.S. § 6247; V.S. § 5400; R.L. § 4515; 1876, No. 73 .

Former § 1517 relating to criminal causes before a justice of the peace was derived from 1969, No. 131 , § 32; V.S. 1947, § 10,510; P.L. § 9006; 1933, No. 157 , § 8644; G.L. § 7449; P.S. § 6247; V.S. § 5400; R.L. § 4515; 1876, No. 73 .

§ 1518. Repealed. 2017, No. 93 (Adj. Sess.), § 25.

History

Former § 1518. Former § 1518, relating to town grand jurors, was derived from V.S. 1947, § 10,520; P.L. § 9015; G.L. §§ 7451, 7452. 1917, No. 254 , § 7223; 1910, No. 91 , §§ 2, 3; P.S. §§ 6238, 6249; 1906, No. 208 , § 7; 1906, No. 212 , § 2. 1902, No. 90 , § 99; V.S. § 5402; 1894, No. 153 , § 2. 1882, No. 103 , § 4; R.L. §§ 4518, 4539; 1868, No. 47 . 1864, No. 43 and amended by 1965, No. 194 , § 10, 1969, No. 131 , § 33; 1973, No. 249 (Adj. Sess.), § 93; and 2009, No. 154 (Adj. Sess.), § 209.

§ 1519. Repealed. 2017, No. 93 (Adj. Sess.), § 26.

History

Former § 1519. Former § 1519, relating to when fees not allowed, was derived from V.S. 1947, § 10,521; P.L. § 9016; G.L. § 7454; 1917, No. 254 , § 7226; 1910, No. 243 .

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.

HISTORY: 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.

History

Source.

V.S. 1947, § 10,522. 1947, No. 202 , § 10,042. P.L. § 9017. 1919, No. 216 , § 1. G.L. §§ 853, 7442. 1917, No. 44 , § 3. 1917, No. 251 . 1915, No. 39 , § 12. 1915, No. 91 , § 20. 1910, No. 40 , § 11. P.S. § 6241. 1904, No. 170 , § 1. V.S. § 5394. R.L. § 4511. 1872, No. 60 .

Amendments

—2009 (Adj. Sess.) Subdiv. (1): Deleted “district or superior” preceding “court” and “or court of jail delivery” thereafter.

—2003 (Adj. Sess.). Subdivs. (1)-(3): Substituted “$30.00” for “$10.00”.

Subdiv. (4): Substituted “mileage at the rate or reimbursement allowed state employees for travel under the terms of the prevailing collective bargaining agreement” for “8 cents a mile each way”.

—1973 (Adj. Sess.) Subdiv. (1): No. 193 changed “county court” to “superior court”. No. 249 omitted reference to justice.

—1971 (Adj. Sess.) Subdiv. (1): Deleted “master in chancery or” preceding “notary public”. See note under § 219 of Title 4.

—1969 (Adj. Sess.) Added reference to county court and increased fees.

—1965. Substituted “district” for “municipal” court.

ANNOTATIONS

Constitutionality.

Provision of this section allowing Superior Court to award witnesses a fee for in-state travel does not violate the Commerce Clause nor the Equal Protection Clause of the United States Constitution. Jordan v. Nissan North America, Inc., 2004 VT 27, 176 Vt. 465, 853 A.2d 40, 2004 Vt. LEXIS 31 (2004).

Contracts.

In action for fraud against seller of real estate, court abused its discretion by awarding costs for expert witnesses based on provision of sales contract, where fees awarded exceeded generally allowable witness fees; cause was remanded for assessment of costs allowable for expert witness fees. Ianelli v. Standish, 156 Vt. 386, 592 A.2d 901, 1991 Vt. LEXIS 83 (1991).

Necessity of subpoena.

Prevailing party may recover fees as part of taxable costs even though he did not subpoena his witnesses under this section and (former) county court rule 33. Bowler v. Miorando, 112 Vt. 363, 24 A.2d 351, 1942 Vt. LEXIS 127 (1942).

Testimony by party.

Party who testifies can tax no fees as a witness. Hale v. Merrill, 27 Vt. 738, 1855 Vt. LEXIS 112 (1855).

Notes to Opinions

Civil cases.

Since § 1552 of this title specifically applies to criminal cases, this section must be held to apply to civil cases only. 1958-60 Vt. Op. Att'y Gen. 42.

§ 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.

HISTORY: Amended 1969, No. 294 (Adj. Sess.), § 23, eff. April 9, 1970; 1991, No. 245 (Adj. Sess.), § 94(c).

History

Source.

1953, No. 260 . V.S. 1947, § 10,523. P.L. § 9018. 1933, No. 157 , § 8656. G.L. § 7399. 1917, No. 254 , § 7173. 1915, No. 1 , § 199. 1908, No. 178 , §§ 5, 8. P.S. § 6203. V.S. § 5356. R.L. § 4498. 1878, No. 38 , § 1.

Amendments

—1991 (Adj. Sess.) Added the second sentence.

—1969 (Adj. Sess.) Increased fees.

Notes to Opinions

Construction with other laws.

Laws such as 18 V.S.A. §§ 504 and 505, having specific application to the State pathologist, his assistants, and State laboratory employees, would control over this section, which is only of general application, because the two are not in any wise inconsistent. 1952-54 Vt. Op. Att'y Gen. 56.

Witnesses.

Regional medical examiner summoned as witness could receive five dollars per day and travel each way at six cents a mile as provided by this section. 1952-54 Vt. Op. Att'y Gen. 56.

§ 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.

HISTORY: Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.

History

Source.

V.S. 1947, § 1765. P.L. § 1718. G.L. § 1908. P.S. § 1606. V.S. § 1255. R.L. § 1017. G.S. 36, § 21. R.S. 31, § 15. 1829, No. 1 , § 3. R. 1797, p. 117, § 87.

Amendments

—1973 (Adj. Sess.) Changed “county court” to “superior court”.

ANNOTATIONS

Need for certificates.

This section did not deprive the trial court of its power to take evidence on the issue of costs where a certificate complying with the statute was lacking. Jordan v. Nissan North America, Inc., 2004 VT 27, 176 Vt. 465, 853 A.2d 40, 2004 Vt. LEXIS 31 (2004).

Section does not take away power of the court to hear evidence concerning costs, and allow travel and attendance of witness without certificates in writing. Higgins v. Hayward, 5 Vt. 73, 1833 Vt. LEXIS 12 (1833).

Review.

Taxing of witnesses’ travel and attendance cannot be assigned for error unless grounds of decision are placed upon record by bill of exceptions. Higgins v. Hayward, 5 Vt. 73, 1833 Vt. LEXIS 12 (1833).

§§ 1554, 1555. Repealed. 1991, No. 245 (Adj. Sess.), § 94(b)(3).

History

Former §§ 1554, 1555. Former § 1554, relating to expert witnesses, was derived from 1957, No. 151 , Part 2, § 3: V.S. 1947, § 10,524: P.L. § 9019: G.L. § 7443: P.S. § 6242: 1906, No. 64 , § 1: 1898, No. 49 , § 1: V.S. § 5395: 1882, No. 101 , § 1, and amended by 1965, No. 194 , § 10.

Former § 1555, relating to witnesses from without the State, was derived from V.S. 1947, § 10,525: P.L. § 9020: G.L. § 7444: 1915, No. 1 , § 181: P.S. § 6243: 1906, No. 64 , § 1; V.S. § 5396: 1888, No. 57 : 1882, No. 1010 , § 2, and amended by 1965, No. 134 and No. 194, § 10.

§ 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.

HISTORY: Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.

History

Source.

V.S. 1947, § 10,526. 1947, No. 202 , § 10,046. 1937, No. 223 , § 1. P.L. § 9021. G.L. § 7445. P.S. § 6244. V.S. § 5397. R.L. § 4512. 1872, No. 79 .

Amendments

—1973 (Adj. Sess.) Changed “county court” to “superior court”.

Notes to Opinions

Commission of General Assembly.

This section, read in pari materia with 12 V.S.A. § 5853 , gives no basis for inferring that members of the Highway Investigating Commission have authority to administer oaths in matters before the Commission for investigation. 1960-62 Vt. Op. Att'y Gen. 116.

§ 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.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1983, No. 195 (Adj. Sess.), § 5(b).

History

Source.

V.S. 1947, § 10,527. P.L. § 9022. G.L. § 7446. P.S. § 6245. V.S. § 5398. R.L. § 4513. 1872, No. 79 , § 2.

Revision note—

At the beginning of the section, substituted “commissioner of finance and management” for “commissioner of finance and information support” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of the commissioner of that entity to the commissioner of the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Reference to “finance director” changed to “commissioner of finance” to conform reference to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

Amendments

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance”.

—1959 (Adj. Sess.) Substituted “finance director” for “auditor of accounts”. See note set out under § 182 of this title.

§ 1558. Repealed. 2010, No. 154 (Adj; Sess.), § 238, effective February 1, 2011.

History

Former § 1558. Former § 1558, relating to persons cited before Probate Division of the Superior Court, was derived from V.S. 1947, § 10,546; P.L. § 9041; G.L. § 3197; 1917, No; 254, § 3149; P.S. § 2728; V.S. § 2344; R.L. § 2037; 1865, No; 20, §§ 1, 2; G.S. 48, § 41; R.S. 44, § 39; 1836, No; 13, § 2; 1834, No; 4, §§ 4, 5 and amended by 2009, No; 154 (Adj. Sess.), § 236.

§ 1559. Compensation of law enforcement officers for attendance at proceedings.

  1. 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.
  2. 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.
  3. These persons shall be compensated for such attendance by their employer according to the terms of their employment.

HISTORY: Added 1969, No. 294 (Adj. Sess.), § 24, eff. April 9, 1970; amended 1983, No. 106 (Adj. Sess.).

History

Amendments

—1983 (Adj. Sess.) Subsec. (b): Added “the county, or the municipality, depending upon which governmental unit employs the individual” following “paid to the state”.

Notes to Opinions

State employees.

Full-time State hospital employee who took authorized leave time to attend proceedings was not entitled to compensation as a witness, though mileage could be paid at the State rate. 1970-72 Vt. Op. Att'y Gen. 109.

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:
    1. For serving each process, the fees shall be as follows:
      1. $10.00 for each reading or copy wherein the officer is directed to make an arrest;
      2. $50.00 upon presentation of each return of service for the service of papers relating to divorce, annulments, separations, or support complaints;
      3. $50.00 upon presentation of each return of service for the service of papers relating to civil suits except as provided in subdivisions (1)(A)(ii) and (1)(A)(vii) of this section;
      4. $50.00 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;
      5. for each arrest, $15.00;
      6. for taking bail, $15.00;
      7. 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;
      8. 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 attorneys’ 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
      9. 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.
    2. 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.
    3. 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.
    4. The Executive Director of the Department of State’s Attorneys and Sheriffs shall develop a uniform reporting system to reflect:
      1. civil process received by a sheriff’s department;
      2. payments made to a sheriff’s department for service, including fees and reimbursements;
      3. payments made by the sheriff’s department to deputy sheriffs for serving process; and
      4. disbursements for other necessary expenses.
    5. Quarterly, 15 percent of the gross civil process fees received by a sheriff’s department 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:
    1. For necessary assistance in arresting or transporting prisoners, juveniles, or persons with mental illness, the sum of $18.00 per hour for each deputy sheriff or assistant so required if the sheriff or constable makes oath that the deputy sheriff, assistant, or assistants were required, giving the name of the assistant or assistants if there were more than one; provided, however, a full-time law enforcement officer shall not receive compensation under this subsection if otherwise compensated for the hours during which such transportation is performed. In addition to the rate established in this section, the sheriffs’ department shall be reimbursed for the costs of the employers’ contribution to Social Security and workers’ compensation insurance attributable to services provided under this section. Reimbursement shall be calculated on an hourly basis; the sheriff’s department shall also be reimbursed for the costs of employer contributions for unemployment compensation, when a claim is filed and the percentage owed from the sheriff’s department to the State can be accounted for under this section.
    2. 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.
    3. For each mile of actual travel, for transporting prisoners, juveniles, and patients with a mental condition or psychiatric disability:
      1. $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
      2. $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 people receiving mental health services are transported in a single vehicle designed to carry six or more passengers in addition to the driver.
    4. The amount actually awarded by the claims commission established under section 931 et seq. 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.

HISTORY: 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.

History

Source.

1951, No. 234 , § 2. 1949, No. 258 . V.S. 1947, § 10,513. P.L. § 9009. 1929, No. 139 , § 1. 1923, No. 150 , § 1. 1921, No. 238 , §§ 1, 2. 1919, No. 213 , §§ 1, 2. G.L. § 7411. 1917, No. 249 , § 1. 1917, No. 254 , § 7183. 1908, No. 178 , § 6. P.S. §§ 6210, 6214. 1906, No. 210 , § 1. 1906, No. 211 , § 1. V.S. §§ 5366, 5370. 1894, Nos. 155, 297. 1892, No. 97 . 1890, No. 51 . 1884, No. 120 . 1884, No. 139 , § 6. 1882, No. 103 , § 1. R.L. §§ 889, 1014, 4503, 4504. 1880, No. 25 . 1880, No. 26 , § 4. 1878, No. 38 , § 2. 1876, No. 3 , § 13. 1872, No. 61 . 1868, Nos. 46, 48. 1865, No. 32 . G.S. 37, § 6. R.S. 32, § 6. R. 1797, p. 103, § 58.

References in text.

Section 931 of this title, referred to in subdiv. (2)(D), was repealed by 1997, No. 156 (Adj. Sess.), § 48, effective April 29, 1998. For present provisions, see §§ 932-935 of this title.

Revision note

—2021. In subdiv. (1)(A)(iii), reference to subdivs. (1)(A)(ii) and (1)(A)(vii) “of this title” changed to “of this section” for clarity.

Revision note—. Subsection designations (a)(1)(A)-(J), (2), (b)(1)-(5) were changed to (1)(A)(i)-(x), (B), (2)(A)-(E) to conform section to V.S.A. style.

Words “justice’s or” preceding “district court” in subdiv. (1)(A)(ix) were deleted as obsolete, since justices of the peace no longer have judicial jurisdiction. See 1973, No. 249 (Adj. Sess.).

Amendments

—2013 (Adj. Sess.). Introductory paragraph and subdivs. (2) and (2)(C): Substituted “patients with a mental condition or psychiatric disability” for “mental patients” following “juveniles, and”.

Subdiv. (2)(C)(ii): Inserted “people receiving” following “juveniles, or” and substituted “services” for “clients” following “health”.

—2013. Subdiv. (2)(A): Substituted “$18.00” for “$15.40” preceding “per hour”.

—2007 (Adj. Sess.). Subdivs. (1)(A)(ii)-(iv): Substituted “$50.00” for “$30.00”.

—2005. Subdiv. (2)(A): Substituted “persons with mental illness” for “mental patients” and “$15.40” for “$11.00” and made a minor change in punctuation in the first sentence, and substituted “Social Security” for “social security” in the second sentence.

—2003 (Adj. Sess.). Subdiv. (1)(A)(iii): Substituted “$30.00” for “$22.50” and “this title” for “Title 32”.

Subdiv. (1)(A)(iv): Substituted “$30.00” for “$22.50”.

Subdiv. (1)(A)(vii): Substituted “$15.00” for “$10.00” wherever it appeared throughout the subdivision.

Subdiv. (2)(D): Inserted “in a small claims proceeding pursuant to chapter 187 of Title 12” preceding “for which the law”.

—1999. Subdiv. (2)(A): Substituted “$11.00” for “$9.50” preceding “per hour” in the first sentence.

—1997. Subdiv. (2)(C): Amended generally.

—1995. Inserted “juveniles” following “prisoners” in the introductory paragraph.

Subdiv. (1): Substituted “$10.00” for “$7.50” in subdiv. (A)(i), “$30.00” for “$22.50” in subdiv. (A)(ii), “$22.50” for “$15.00” in subdivs. (A)(iii) and (iv) and “$15.00” for “$10.00” in subdivs. (A)(v) and (vi), inserted “or order of foreclosure” following “execution” and substituted “$10.00” for “$5.00” in two places in subdiv. (A)(vii) and rewrote subdiv. (A)(viii).

Subdiv. (2): Inserted “juveniles” following “prisoners” in the introductory paragraph, inserted “juveniles” following “prisoners”, substituted “$9.50” for “$9.00” and deleted “he or she is” preceding “otherwise” in the first sentence and rewrote the third sentence of subdiv. (A), substituted “the prisoner” for “him” following “place” in subdiv. (B), and rewrote subdivs. (C) and (D).

—1989 (Adj. Sess.) Subdiv. (2)(A): Substituted “$9.00” for “$8.50”.

—1987 (Adj. Sess.) Subdiv. (1)(E): Substituted “15” for “25” preceding “percent”.

Subdiv. (2)(A): Amended generally.

—1987. Subdiv. (2)(A): Substituted “$8.00” for “$7.00” preceding “per hour” and “the” for “his” following “giving the name of”.

—1985 (Adj. Sess.) Substituted “departments” for “deputy sheriffs” following “paid to sheriffs” in the introductory paragraph, increased fees generally throughout subdivs. (1)(A)(i)-(viii), deleted former subdiv. (1)(A)(ix), redesignated former subdiv. (1)(A)(x) as present subdiv. (1)(A)(ix), and added subdivs. (1)(C)-(E).

—1983 (Adj. Sess.) Subdiv. (2)(A): Substituted “$7.00” for “$5.75” following “sum of”.

—1981 (Adj. Sess.) Subdiv. (1)(A)(iii): Substituted “sections 1591(1)(A)(ii) and 1591(1)(A)(vii) of Title 32” for “subsections (1)(A)(ii) and (1)(A)(vii) of this section”.

Subdiv. (1)(A)(vii): Substituted “the rate allowed state employees under the terms of the prevailing contract between the state and the Vermont State Employees Association, Inc.” for “22 cents” following “demand, sale or adjournment”.

Subdiv. (1)(B): Substituted “the rate allowed state employees under the terms of the prevailing contract between the state and the Vermont State Employees Association, Inc.” for “22 cents” following “civil matters”.

Subdiv. (2)(A): Substituted “$5.75” for “$5.50” per hour.

Subdiv. (2)(C)(iii): Substituted “three cents 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.” for “25 cents per mile” following reference to 18 V.S.A. § 7501 et seq.

—1981. Subdiv. (1)(A)(vii): Increased mileage to 22 cents and $5.00 for making demand.

Subdiv. (1)(A)(viii): Raised fee from “$2.00” to “$5.00” for return on execution.

Subdiv. (1)(B): Mileage increased to 22 cents.

Subdiv. (2)(A): Hourly rate increased to $5.50.

Subdiv. (2)(C)(iii): Mileage rate increased from “20” to “25” cents per mile.

Subdiv. (2)(E): Deleted.

—1979 (Adj. Sess.) Section amended generally.

—1977 (Adj. Sess.) Subdiv. (1)(A)(ii)-(iv): No. 218 increased fees.

Subdiv. (2)(A): Hourly rate increased to $4.50 by No. 222.

—1973 (Adj. Sess.) Subdiv. (2)(A): Increased hourly rate.

—1973. Subdiv. (2)(A): Increased hourly rate and deleted daily limitation.

Subdiv. (2)(C): Increased mileage and rephrased.

—1969. Section amended generally.

—1967 (Adj. Sess.) Section amended generally by increasing fees, adding reference to district or county court, and deleting municipal court.

Compensation to sheriffs’ departments for service of process. 1985, No. 225 (Adj. Sess.), § 20, provided: “Sheriffs’ Departments shall not be compensated for service of process which otherwise would have been charged to the Sheriffs’ appropriation.”

Sheriffs; determinations of costs. 2005, No. 72 , § 4a, provides: “Beginning in fiscal year 2007, the schedule of costs and reimbursable amounts for payments to sheriffs, deputy sheriffs, and constables set out in 32 V.S.A. § 1591(2)(A) shall be utilized by the sheriffs and constables in the preparation and submission of budget documents and appropriation requests to the general assembly, and by the general assembly in determining such amounts to be appropriated.”

CROSS REFERENCES

Additional fees for sheriff, constable, or police officer search with warrant, see 7 V.S.A. § 588 .

Deputation fees prohibited, see 24 V.S.A. § 308 .

ANNOTATIONS

Search on a warrant.

Provision allowing fees for making search on warrant certified by State’s Attorney refers to warrant mentioned in § 1594 of this title and not to warrants for searching for intoxicating liquor. Fay v. Barber, 72 Vt. 55, 47 A. 180, 1899 Vt. LEXIS 128 (1899).

Securing attached property.

Sheriff may recover expenses directly from plaintiff in keeping attached property which plaintiff released from attachment before termination of suit, even though such items were not indorsed on writ as part of fees, and before termination of the suit in which attachment issued. Templeton v. Capital Sav. Bank & Trust Co., 76 Vt. 345, 57 A. 818, 1904 Vt. LEXIS 145 (1904).

Notes to Opinions

Mileage.

Mileage should be payable only if officer is transporting a prisoner. 1954-56 Vt. Op. Att'y Gen. 397.

Where sheriff, pursuant to warrant of arrest issued by Caledonia County municipal court, made two trips from St. Johnsbury to West Burke before succeeding in making arrest, fees should be taxed and allowed by court for such trips. 1930-32 Vt. Op. Att'y Gen. 64.

Necessary assistance.

If sheriff in making arrest believed it necessary to have assistance and court finds assistance was necessary and sheriff paid assistant reasonable sum and made oath that money was so expended, giving name of assistant, court should allow such fee as part of taxation of costs. 1930-32 Vt. Op. Att'y Gen. 64.

Officers allowed fees.

Fees for services of State Police officers should be taxed against respondents, even though State Police officers are not entitled to benefit personally for serving criminal process. 1968-70 Vt. Op. Att'y Gen. 91.

No fees can be taxed against a respondent in motor vehicle cases where the services are rendered by motor vehicle officer. 1942 Vt. Op. Att'y Gen. 436.

Trial attendance.

A fee of $5.00 for attendance of arresting officer cannot properly be made a part of the taxable costs and assessed against a respondent when costs are charged to respondent, unless the arresting officer is actually present in court in connection with the arraignment of the respondent that the officer arrested. 1968-70 Vt. Op. Att'y Gen. 91.

A district court judge cannot legally reduce the attendance fee of $5.00 due an officer personally, even though the judge must strike and may suspend costs taxed against respondents in certain cases. 1968-70 Vt. Op. Att'y Gen. 91.

An officer may waive a personal claim against the State for services if so desired, and if the officer exercises this right, the district judge should not for that reason suspend such costs, since the costs taxed against a guilty respondent belong to the State and should be taxed against respondent in those cases where it is proper to tax costs, in the amount determined by the Legislature. 1968-70 Vt. Op. Att'y Gen. 91.

If the district court judge exercising sound discretion determines that part of the costs should be suspended, the judge may do so, but the costs should be taxed at the amount fixed by statute. 1968-70 Vt. Op. Att'y Gen. 91.

Sheriff’s fee of $6.00 a day can be properly paid only for attendance at actual jury trial and drawing of jury not being such trial, fee for this should be $0.75 a day. 1932-34 Vt. Op. Att'y Gen. 353.

§ 1592. Repealed. 1993, No. 227 (Adj. Sess.), § 21.

History

Former § 1592. Former § 1592, relating to fees and costs of the district court officer, was derived from 1951, No. 234 , § 3: V.S. 1947, § 10,514: 1947, No. 181 , § 2: 1959, No. 229 , § 4: 1965, No. 194 , § 10: 1967, No. 368 (Adj. Sess.), § 6: 1969, No. 131 , § 34: 1973, No. 117 , § 20: 1977, No. 222 (Adj. Sess.), § 12: 1979, No. 141 (Adj. Sess.), § 19, and amended by 1981, No. 91 , § 16: 1981, No. 249 (Adj. Sess.), § 20: 1983, No. 88 : 1983, No. 243 (Adj. Sess.), § 13: 1985, No. 93 , § 8: 1985, No. 225 (Adj. Sess.), § 14: 1987, No. 121 , § 12: 1987, No. 183 (Adj. Sess.), § 16: 1989, No. 67 , § 10: 1989, No. 227 (Adj. Sess.), § 11: 1991, No. 189 (Adj. Sess.), § 12.

§ 1593. Service without the State.

An officer required to serve a requisition or execute process without the State shall receive therefor $3.00 a day and necessary expenses.

History

Source.

V.S. 1947, § 10,515. P.L. § 9010. G.L. § 7416. P.S. § 6213. V.S. § 5369. 1884, No. 143 .

§ 1594. Repealed. 1991, No. 257 (Adj. Sess.), § 9.

History

Former § 1594. Former § 1594, relating to mileage fees incurred during searches for criminals, was derived from V.S. 1947, § 10,516: P.L. § 9011: G.L. § 7417: 1917, No. 254 , § 7189: P.S. § 6215: V.S. § 5371: R.L. § 4505: 1866, No. 22 , and amended by 1965, No. 194 , § 10: 1967, No. 368 (Adj. Sess.), § 7, eff. Mar. 27, 1968: 1973, No. 249 (Adj. Sess.), § 95 eff. Apr. 9, 1974.

§ 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.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8; 1983, No. 195 (Adj. Sess.), § 5(b).

History

Source.

V.S. 1947, § 10,517. P.L. § 9012. G.L. § 7414. 1917, No. 254 , § 7186. P.S. § 6211. V.S. § 5367. R.L. § 4503. 1878, No. 38 , § 2.

Revision note—

Reference to “commissioner of finance and information support” following “allowed, and the” changed to “commissioner of finance and management” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of the commissioner of that entity to the commissioner of the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Reference to “finance director” changed to “commissioner of finance” to conform reference to new title and reorganization of State government. See 3 V.S.A. chapter 45.

Amendments

—1983 (Adj. Sess.) Substituted “commissioner of finance and information support” for “commissioner of finance” following “allowed, and the”.

—1959 (Adj. Sess.) “Finance director” substituted for “auditor of accounts”. See note set out under § 182 of this title.

§ 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 10,518. P.L. § 9013. G.L. § 7419. 1917, No. 254 , § 7191. 1908, No. 178 , § 7. P.S. § 6217. 1898, No. 43 , § 1.

Amendments

—2009 (Adj. Sess.) Substituted “an officer” for “a district court judge or other officer”.

—1973 (Adj. Sess.) Substituted “district court judge” for “justice of district court” and changed “county court” to “superior court”.

—1965. Substituted “district” for “municipal” court.

§ 1597. Returns.

All officers serving criminal process shall make return with bill of fees thereon.

HISTORY: Amended 1969, No. 131 , § 21, eff. April 23, 1969.

History

Source.

V.S. 1947, § 10,519. P.L. § 9014. G.L. § 7409. 1908, No. 178 , § 9.

Amendments

—1969. Deleted reference to costs.

CROSS REFERENCES

Service and return of criminal process, see V.R.Cr.P. 4.

Notes to Opinions

Construction.

Section does not grant any authority for taxing of fees for motor vehicle inspectors. 1940-42 Vt. Op. Att'y Gen. 438.

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.

HISTORY: 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.

History

Source.

V.S. 1947, § 10,528. P.L. § 9023. G.L. § 7440. P.S. § 6239. V.S. § 5392. R.L. § 1159. G.S. 34, §§ 61, 62, 78. 1848, No. 47 , § 2. R.S. 29, §§ 55, 59. 1807, p. 165.

Amendments

—2009 (Adj. Sess.) Deleted “or district court” following “commissioner”.

—1973 (Adj. Sess.) Deleted reference to justice court and changed “county court” to “superior court”.

—1965. Substituted “district” for “municipal” court.

ANNOTATIONS

Travel.

Trustees and claimants allowed only their actual travel, not for travel at those terms of court when they appeared only by attorney. Hunt v. Miles, 42 Vt. 533, 1870 Vt. LEXIS 3 (1870).

§ 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.

History

Source.

V.S. 1947, § 10,529. P.L. § 9024. 1933, No. 157 , § 8662. G.L. § 7441. P.S. § 6240. V.S. § 5393. R.L. § 1160. G.S. 34, § 25. 1853, No. 15 , § 9.

§ 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.

History

Source.

V.S. 1947, § 10,530. P.L. § 9025. 1933, No. 157 , § 8663. G.L. § 7471. P.S. § 6265. V.S. § 5416. R.L. § 4549. 1874, No. 78 .

§ 1634. Per diem for appraisers.

Appraisers appointed under section 4447 of this title shall each receive from the State $15.00 a day for time actually spent in the discharge of their duties and their necessary expenses when away from home on official business.

HISTORY: Amended 1963, No. 193 , § 40, eff. June 28, 1963.

History

Source.

1951, No. 235 . V.S. 1947, § 10,531. 1947, No. 182 , § 1. P.L. § 9026. G.L. § 851. 1915, No. 39 , § 10. 1910, No. 40 , § 9.

References in text.

§ 4447 of this title was repealed by 1969, No. 253 (Adj. Sess.), § 3. Section 1 of that Act created § 4465, which covers appointment and compensation of property valuation hearing officers. See present § 4465 of this title.

Amendments

—1963. Per diem was increased from “$10.00” to “$15.00”.

§ 1635. Repealed. 1959, No. 328 (Adj. Sess.), § 35(j).

History

Former § 1635. Former § 1635, relating to election officers, was derived from V.S. 1947, § 10,532: P.L. § 9027: G.L. § 7404: 1915, No. 1 , § 178: P.S. § 6207: 1902, No. 153 , § 6: V.S. § 5361: 1890, No. 10 , § 1: R.L. §§ 4500, 4542: 1870, No. 2 , § 3: G.S. 1, § 22.

§ 1636. Repealed. 1967, No. 345 (Adj. Sess.), § 32, eff. April 1, 1969.

History

Former § 1636. Former § 1636, relating to jailers’ fees, was derived from 1966, No. 49 (Sp. Sess.), § 2: 1957, No. 258 : 1951, No. 234 , § 4: 1949, No. 255 , § 3: V.S. 1947, § 10,533: 1947, No. 183 , § 1: 1941, S., No. 4, § 1: P.L. § 9028: 1933, No. 154 , § 1: 1927, No. 136 : 1925, No. 137 , § 3: 1919, No. 218 , § 1: G.L. § 7457: 1912, No. 252 : P.S. § 6253: V.S. § 5405: 1882, No. 103 , § 2: R.L. § 4521: 1876, No. 12 : 1866, No. 19 .

§ 1637. Commissioners of jail delivery.

  1. 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.
  2. The fees of the commissioners shall be allowed by the Commissioner of Finance and Management and paid by the State.

HISTORY: Amended 1959, No. 328 (Adj. Sess.), § 8(b); 1983, No. 195 (Adj. Sess.), § 5(b).

History

Source.

V.S. 1947, § 10,534. P.L. § 9029. G.L. § 7456. P.S. § 6252. V.S. § 5404. 1886, No. 54 . R.L. § 4519. G.S. 126, § 45.

Revision note—

In subsec. (b), substituted “commissioner of finance and management” for “commissioner of finance and information support” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of the commissioner of that entity to the commissioner of the department of finance and management as established by the order. Executive Order No. 35-87, took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Reference to “finance director” changed to “commissioner of finance” to conform reference to new title and reorganization of State government. See 3 V.S.A. chapter 45.

Amendments

—1983 (Adj. Sess.) Subsec. (b): Inserted “and information support” following “commissioner of finance”.

—1959 (Adj. Sess.) “Auditor of accounts” changed to “finance director”.

Subchapter 8. Town Officers

§ 1671. Town clerk.

  1. 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. § 4523(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.
  2. A schedule of all fees shall be posted in the town clerk’s office.
    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. (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.
  3. 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.
  4. 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.
  5. 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.

HISTORY: 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.

History

Source.

1953, No. 195 , § 4. 1953, No. 227 , § 2. 1953, No. 169 , §§ 2, 3. 1949, No. 259 . V.S. 1947, § 10, 551. 1947, No. 185 , § 1. 1941, No. 196 , § 1. P.L. § 9046. 1933, No. 157 , § 8683. 1929, No. 52 , § 2. 1921, No. 246 , § 1. 1919, No. 219 , §§ 3, 8. G.L. §§ 690, 7462. 1917, No. 99 . 1910, No. 245 . P.S. § 6257. 1900, No. 114 , § 1. V.S. § 5409. 1892, No. 100 . 1888, No. 59 , § 1. R.L. §§ 1993, 2312, 4538. 1870, No. 24 , §§ 1, 2. 1870, No. 63 , § 2. 1869, No. 1 , § 2. 1865, No. 34 . 1863, No. 26 , § 2. G.S. 17, § 1. G.S. 126, § 42. R.S. 13, § 31. R. 1797, p. 333, § 8. R. 1787, p. 156.

References in text.

12 V.S.A. § 4523(b) , referred to in subdiv. (a)(2), was repealed by 2011, No. 102 (Adj. Sess.), § 2.

Revision note—

Redesignated subdiv. (a)(7), as added by 1993, No. 170 (Adj. Sess.), § 13, as subdiv. (a)(8) in view of the redesignation of former subdiv. (a)(6) as subdiv. (a)(7) by 1993, No. 170 (Adj. Sess.), § 17.

Editor’s note—

The text of this section is based on the harmonization of two amendments. During the 2009 Session and 2009 Sp. Session, this section was amended twice, by Act Nos. 3 (Sp. Sess.) and 47, resulting in two versions of this section. In order to reflect all of the changes enacted by the Legislature during the 2009 Session and 2009 Sp. Session, the text of Act Nos. 3 (Sp. Sess.) and 47 was merged to arrive at a single version of this section. The changes that each of the amendments made are described in the amendment notes set out below.

Amendments

—2019. Subsec. (a): Substituted “$15.00” for “$10.00” in subdivs. (a)(1), (a)(2), and (a)(6); substituted “$4.00” for “$2.00” in subdiv. (a)(4); in subdiv. (a)(6), substituted “a fee of $15.00 per page shall be charged” for “or,” and deleted “except that” preceding “for the recording”; substituted “$25.00” for “$15.00” throughout subdiv. (a)(8).

Subsec. (c): Amended generally.

Subsec. (d): Deleted the former first sentence, and inserted “and Preservation” preceding “Reserve Fund”.

Subsecs. (e) and (f): Added.

—2009 (Sp. Sess.). Act No. 3 (Sp. Sess.) substituted “For” for “Notwithstanding any other provision of law to the contrary, for” at the beginning of subdiv. (a)(6).

Act No. 47 added “per page” at the end of subdiv. (a)(1); substituted “$10.00” for “$6.00” in subdiv. (a)(2); substituted “$10.00” for “$8.00” in two places in subdiv. (a)(6); and substituted “$15.00” for “$6.00”, “$15.00” for “$8.00”, and “$15.00” for “$10.00” in subdiv. (a)(8).

—2007 (Adj. Sess.) Subdiv. (a)(6): Added the exception.

—2007. Subdiv. (a)(6): Substituted “Notwithstanding any other provision of law to the contrary, for” for “For” at the beginning of the subdiv. and “$8.00” for “$7.00” preceding “per page”.

—1999 (Adj. Sess.). Substituted “$7.00” for “$6.00” in subdiv. (a)(6), rewrote subsec. (c) and added subsec. (d).

—1997 (Adj. Sess.). Subsec. (c): Designated the existing paragraph as subdiv. (1) and added subdiv. (2).

—1997. Subdiv. (a)(2): Inserted “or recording” following “filing” and added “per page” following “$6.00”.

—1995 (Adj. Sess.) Subdiv. (a)(7): Act No. 159 inserted “copies of grandlists and checklists and copies of any public records that any agency of that political subdivision has deposited with the clerk” following “commissions” and “actual” preceding “cost”.

Subsec. (c): Added by Act No. 109.

—1993 (Adj. Sess.) Subsec. (a): Act No. 170 (Adj. Sess.), § 13 added subdiv. (7).

Act No. 170, § 17 added new subdiv. (2) and redesignated former subdivs. (2)-(6) as subdivs. (3)-(7).

—1985 (Adj. Sess.) Section amended generally.

—1981 (Adj. Sess.) Subdiv. (1): Added provisions for recording and certified copies of lease.

Subdiv. (6): Provided for a fee of $3.00 per page received.

Subdiv. (7): Provided for a fee of $5.00 per page received.

Subdiv. (8): Deleted “all other recording and” preceding “uncertified copies of records”.

—1979 (Adj. Sess.) Opening paragraph: Defined the word “page”.

Subdiv. (1): Deleted the word “chattel” mortgages and provided for a fee of $6.00 per page received.

Subdiv. (2): Increased fee from “$3.00” to “$5.00”.

Subdiv. (3): Provided for a fee of $5.00 per page received.

Subdiv. (4): Fee was changed to “$5.00 per page received” from “$1.00 per folio, with a minimum fee of $2.50”.

Subdiv. (5): Fee changed from “$1.00 per folio, with a minimum fee of $2.00” to “$5.00 per page received”.

Subdiv. (6): Deleted, former subdiv. (7) redesignated as (6), and increased fee to $3.00 for the filing and indexing of other documents required by law to be filed or to be recorded.

Subdiv. (7): Redesignated as subdiv. (6) and a new subdiv. (7) added.

Subdiv. (8): Provided minimum per page fees for all other recording and for uncertified and certified copies.

Subdiv. (9)(A): Increased fees from “$3.00” to “$5.00” per hour and from “$15.00” to “$25.00” for each examination on any one calendar day.

—1971. Increased fees, amended subdiv. (9) generally, deleted former subdiv. (10), and renumbered former subdiv. (11) as (10).

—1969. Increased fees.

—1967. Subdiv. (1): Increased fee from $2.00 to $2.50.

—1965. Subdiv. (9): Paragraph (a), former text designated as “(a)” and fee raised to $1.50 regardless of time spent; par. (b), added.

—1959. Subdiv. (1): Amended V.S. 1947, § 10,551, subdiv. I, by raising fee from $1.50 to $2, and 30 cents per folio to 40 cents.

Subdiv. (3): Raised fee from 75 cents to $1, and from 30 cents per folio to 40 cents.

Subdiv. (4): Raised fee from 30 cents per folio to 40 cents, and minimum from 75 cents to $1.

Subdiv. (5): Raised fee from 30 cents per folio to 40 cents.

Subdiv. (6): Raised fee from 30 cents per folio to 40 cents, and minimum from 50 cents to $1.

Subdiv. (7): Raised fee from 50 cents to $1.

Subdiv. (8): Raised fee from 30 cents per folio to 40 cents, and minimum from 75 cents to $1.

Subdiv. (9): Raised examination fee from 50 to 75 cents, and hourly rate from 75 cents to $1.

Subdiv. (11): Raised fee from 30 cents per folio to 40 cents.

Repeal of prospective repeal of subsecs. (c) and (d). 1999, No. 155 (Adj. Sess.), § 12k, which provided for the sunset of subsecs. (c) and (d), effective June 30, 2005, was repealed by 2003, No. 138 (Adj. Sess.), § 3.

Notes to Opinions

Vendor’s liens.

The fees specified in subsec. (3) control whether recording is by copying at length or by pasting as permitted by vendor’s lien statute. 1952-54 Vt. Op. Att'y Gen. 278.

§ 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.

HISTORY: Amended 1959, No. 171 , § 10.

History

Source.

V.S. 1947, § 10,552. 1941, No. 197 , § 1. P.L. § 9047. 1933, No. 157 , § 8684. G.L. § 893. P.S. § 622. V.S. § 484. 1882, No. 106 , § 1. R.L. § 385. 1880, No. 90 , § 4.

Amendments

—1959. Reenacted V.S. 1947, § 10,552, without change.

§ 1673. Repealed. 1979, No. 177 (Adj. Sess.), § 3.

History

Former § 1673. Former § 1673, relating to town treasurer’s fees for issuing warrant to the collector of taxes, was derived from V.S. 1947, § 10,553: P.L. § 9048: 1933, No. 157 , § 8685: G.L. § 893. P.S. § 662: V.S. § 484: 1882, No. 106 , § 1: R.L. § 385: 1880, No. 90 , § 4.

§ 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:
    1. 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.
    2. 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.

HISTORY: Amended 1993, No. 68 , § 1; 1997, No. 26 , § 1; 2003, No. 100 (Adj. Sess.), § 1.

History

Source.

V.S. 1947, § 10,554. 1947, No. 202 , § 10,074. 1941, No. 198 , § 1. P.L. § 9049. G.L. § 7458. 1908, No. 201 . P.S. § 6254. V.S. § 5406. R.L. §§ 369, 4535. 1876, No. 22 . G.S. 84, § 64. G.S. 126, § 33. R.S. 77, § 38. R. 1797, p. 299, § 31.

Amendments

—2003 (Adj. Sess.). Section amended generally.

—1997. Subdiv. (2): Inserted “or 4792” following “4772”, deleted “and on all taxes collected on a treasurer’s warrant” preceding “the collector”, and substituted “charge” for “tax” following “allowed to”.

—1993. Subdiv. (1): Substituted “paid within the time established in” for “voluntarily paid within ninety days of the giving of” preceding “the notice”.

Subdiv. (2): Substituted “the time established in the notice required by section 4772 of this title” for “such ninety days” following “expiration of”.

2003 (Adj. Sess.) amendment. 2003, No. 100 (Adj. Sess.), § 5, eff. April 28, 2004, provided: “This act [which amends this section, and sections 4773 and 5137 of this title, and section 1530 of Title 24], shall take effect for the collection of taxes assessed on or after April 1, 2005.”

ANNOTATIONS

Recovery of commission.

Town’s use of the term “penalties” in a notice to refer to the collector’s fee authorized by statute did not invalidate a tax sale, nor did it prevent the town from collecting the fee. The purpose of the notice was to inform the taxpayer that the property was to be sold, so that the taxpayer could prevent the sale by paying the delinquent taxes. The notice was clear enough to inform taxpayers of the sale, and of the amount properly due. Ran-Mar, Inc. v. Town of Berlin, 2006 VT 117, 181 Vt. 26, 912 A.2d 984, 2006 Vt. LEXIS 320 (2006).

Town tax collector had no authority to bring action for recovery of penalties and interest accrued on delinquent taxes. Clase v. Fair, 129 Vt. 573, 285 A.2d 705, 1971 Vt. LEXIS 305 (1971).

When payment of delinquent taxes is accepted in the amount of the tax alone, the right to collect penalties, interest, and costs is extinguished. Clase v. Fair, 129 Vt. 573, 285 A.2d 705, 1971 Vt. LEXIS 305 (1971).

Tax collector’s commission on amount of taxes was recoverable in action of contract to collect delinquent taxes. Brattleboro v. Carpenter, 104 Vt. 158, 158 A. 73, 1932 Vt. LEXIS 132 (1932).

Cited.

Cited in Rooney Vermont Associates v. Town of Pownal, 140 Vt. 150, 436 A.2d 733, 1981 Vt. LEXIS 574 (1981).

Notes to Opinions

Construction with other laws.

Fees and costs allowed a tax collector are in the sale of any lands for taxes fixed by § 5258 of this title, and in the sale of personal property or personal estate for taxes fixed by subdiv. (3) of this section. 1938-40 Vt. Op. Att'y Gen. 447.

§ 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.

HISTORY: Amended 1971, No. 185 (Adj. Sess.), § 236(d), eff. March 29, 1972.

History

Source.

1953, No. 5 . V.S. 1947, § 10,555. P.L. § 9051. G.L. § 7463. P.S. § 6258. V.S. § 5410. R.L. § 4543. 1870, No. 37 .

Revision note—

Words “on this statute” changed to “under this section” for clarity.

Amendments

—1971 (Adj. Sess.) Changed “an action of contract” to “a civil action”. See note under 4 V.S.A. § 219 .

ANNOTATIONS

Recovery from other party.

When one party pays entire fees due to fence viewers for their services, the paying party can recover of the other party the portion adjudged to be paid by the other party, without regard to the legality of division of the fence. Irish v. Blackmer, 56 Vt. 670, 1884 Vt. LEXIS 117 (1884).

§ 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.

History

Source.

V.S. 1947, § 10,556. P.L. § 9052. G.L. §§ 4015, 7466. 1917, No. 254 , §§ 3963, 7238. P.S. §§ 3514, 6261. V.S. §§ 3064, 5372, 5413. R.L. §§ 2729, 4516, 4546. 1869, No. 51 . G.S. 15, § 49. G.S. 125, § 8. R.S. 105, § 7. 1802, p. 76.

§ 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.

History

Source.

V.S. 1947, § 10,557. P.L. § 9053. G.L. § 4016. 1910, No. 108 , § 1. P.S. § 3427. 1906, No. 92 , § 1. 1902, No. 55 , § 1. V.S. § 2980. P.L. § 2658. 1869, No. 51 . G.S. 15, § 13. 1842, No. 12 . R.S. 13, § 13. 1824, p. 11. R. 1797, p. 284, § 3. R. 1787, p. 158.

§ 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.

History

Source.

V.S. 1947, § 10,558. P.L. § 9054. G.L. § 7464. P.S. § 6259. V.S. § 5411. R.L. § 4544. G.S. 126, § 46.

§ 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.

History

Source.

V.S. 1947, § 10,559. P.L. § 9055. G.L. § 7465. P.S. § 6260. V.S. § 5412. R.L. § 4545. G.S. 126, § 49.

§ 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.

History

Source.

V.S. 1947, § 10,560. P.L. § 9056. G.L. § 4147. P.S. § 3615. 1906, No. 99 , § 1. 1904, No. 76 , § 1.

§ 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.

History

Source.

V.S. 1947, § 10,561. P.L. § 9057. G.L. § 4173. P.S. § 3631. 1904, No. 77 , § 14.

Subchapter 9. Vital Registration

§ 1711. County clerks.

County clerks shall receive the same fees as town clerks in the matter of vital registrations.

History

Source.

V.S. 1947, § 10,562. P.L. § 9058. G.L. § 3772. 1917, No. 254 , § 3723.

§ 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, $60.00 to be paid by the applicant, $10.00 of which sum shall be retained by the town clerk as a fee, $35.00 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 him or her 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 .

HISTORY: 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.

History

Source.

1953, No. 169 , § 4. 1949, No. 261 . 1949, No. 260 , §§ 1, 2. V.S. 1947, § 10,563. 1947, No. 185 , § 2. 1941, No. 65 , § 10. 1935, No. 208 , § 1. P.L. § 9059. 1933, No. 157 , § 8696. 1919, No. 219 , §§ 4, 6, 8. G.L. §§ 3778, 3788, 7462. 1910, No. 245 . P.S. §§ 3284, 3295, 6257. 1906, No. 174 , § 2. 1904, No. 140 , § 8. 1902, No. 114 , § 9. 1900, No. 114 , § 1. 1898, No. 59 , § 7. V.S. § 5409. 1892, No. 100 . 1888, No. 59 , § 1. R.L. §§ 1993, 2312, 4538. 1870, No. 24 , §§ 1, 2. 1870, No. 63 , § 2. 1869, No. 1 , § 2. 1865, No. 34 . 1863, No. 26 , § 2. G.S. 17, § 1. G.S. 126, § 42. R.S. 13, § 31. R. 1797, p. 333, § 8. R. 1787, p. 156.

Amendments

—2017 (Adj. Sess.). Subdiv. (5): Deleted “and allocated” following “charged”.

—2017. Substituted “for issuing marriage licenses and vital event certificates” for “in the matter of vital registration” in the undesignated paragraph; deleted “or civil union” preceding “license” in subdiv. (1); repealed subdivs. (2)-(4); and amended subdiv. (5) generally.

—2015 (Adj. Sess.). Subdiv. (1): Substituted “$60.00” for “$45.00” and “$35.00” for “$20.00” in the first sentence.

—2011 (Adj. Sess.). Subdiv. (1): Substituted “domestic and sexual violence” for “victim’s compensation” preceding “special fund” and inserted “created by 13 V.S.A. § 5360 ” following “special fund”.

—2009 (Adj. Sess.) Subdiv. (5): Substituted “Vermont state archivist” for “commissioner of buildings and general services”.

—2007 (Adj. Sess.). Subdiv. (1): Substituted “$45.00” for “$23.00” and “$10.00” for “$8.00” and inserted “$20.00 of which shall be deposited in the victims’ compensation special fund” in the first sentence.

—2007. Subdiv. (5): Amended generally.

—2005 (Adj. Sess.). Subdiv. (5): Substituted “$9.50” for “$7.00” and made a minor change in punctuation.

—2001. Subdiv. (1): Substituted “$23.00” for “$20.00” and “$8.00” for “$5.00” in the first sentence.

—1999 (Adj. Sess.). Subdiv. (1): Inserted “or civil union” following “marriage” in the first sentence.

Subdiv. (3): Inserted “for the correction or completion of each civil union certificate under the provisions of section 5168 of Title 18” following “section 5150 of Title 18”.

Subdiv. (4): Inserted “civil unions” following “deaths”.

Subdiv. (5): Inserted “civil union” following “death”.

—1997. Subdiv. (5): Substituted “$7.00” for “$5.00”.

—1993 (Adj. Sess.) Subdiv. (1): Substituted “$20.00” for “$16.00”, “$5.00” for “$3.00” and “$15.00” for “$13.00” and inserted “or her” preceding “during the quarter” in the first sentence.

—1985 (Adj. Sess.) Subdiv. (1): Substituted “a” for “his” preceding “fee and $13.00” in the first sentence.

Subdiv. (5): Substituted “$5.00” for “$3.00”.

—1981 (Adj. Sess.) Subdiv. (1): Increased marriage license fee from “$6.00” to “$16.00” and portion of such fee to be paid to the state treasurer quarterly from “$3.00” to “$13.00”.

—1979 (Adj. Sess.) Subdiv. (3): Increased fees to $2.00 and rephrased text generally.

Subdiv. (4): Provided for a $1.00 fee for each certificate of facts transmitted to the commissioner of health.

Subdiv. (5): Increased fee from “$2.00” to “$3.00” for each certified copy.

—1971. Subdivs. (1), (5): Increased fees.

—1959. Subdiv. (1): Raised fee from $3 to $4, and sum retained from $1 to $2, and changing quarterly periods to begin Jan. 1.

Subdiv. (2): Raised fee from 50 cents to $1.

Subdiv. (3): Raised fee from 50 cents to $1.

Subdiv. (5): Raised fee from 75 cents to $1.

Effective date of 2017 amendment of section. 2017, No. 46 , § 63 as amended by 2018, No. 11 (Sp. Sess.), § I.1(b) provides that the amendment of this section shall take effect July 1, 2019.

1999 (Adj. Sess.). Amendment. 1999, No. 91 (Adj. Sess.), § 41, contained a severability provision applicable to this section.

2009 statutory revision. 2009, No. 3 , § 12a provides: “The staff of the legislative council, in its statutory revision capacity, is authorized and directed to make such amendments to the Vermont Statutes Annotated as are necessary to effect the purpose of this act, including, where applicable, substituting the words ‘civil marriage‘ for the word ‘marriage.‘ Such changes shall be made when new legislation is proposed, or there is a republication of a volume of the Vermont Statutes Annotated.”

§ 1713. Repealed. 1975, No. 16, § 1, eff. March 21, 1975.

History

Former § 1713. Former § 1713, relating to reporting communicable diseases to State, was derived from 1955, No. 221 , § 9: 1951, No. 79 : V.S. 1947, § 10,564: P.L. § 9060: 1933, No. 157 , § 8697: 1921, No. 87 , § 1: 1921, No. 88 , § 1: G.L. § 3820. P.S. § 3325: 1906, No. 173 , § 1: 1904, No. 140 , § 10: 1902, No. 114 , § 11: 1898, No. 59 , § 9: 1896, No. 56 , § 8 and amended by 1959, No. 171 , § 15: 1959, No. 329 (Adj. Sess.), § 27.

§ 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.

HISTORY: Amended 1963, No. 102 , § 7, eff. May 22, 1963; 1999, No. 49 , § 225.

History

Source.

V.S. 1947, § 10,565. 1947, No. 185 , § 3. P.L. § 9061. 1933, No. 157 , § 8698. 1921, No. 87 , § 1. 1921, No. 88 , § 1. G.L. § 3820. P.S. § 3325. 1906, No. 173 , § 1. 1904, No. 140 , § 10. 1902, No. 114 , § 11. 1898, No. 59 , § 9. 1896, No. 56 , § 8.

Amendments

—1999. Deleted “entomb or move” following “to bury” and substituted “$5.00” for “$1.00” in the first sentence and added the second sentence.

—1963. Raised fee from fifty cents to one dollar.

§ 1715. Vital records search; copies search.

  1. 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.
  2. 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.

HISTORY: 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.

History

Revision note—

The word “of” preceding “$2.00” was changed to “is” to correct an apparent error.

Amendments

—2017. Section amended generally.

—2011. Subsec. (a): Substituted “commissioner and the Vermont state archivist” for “commissioners” in two places in the first sentence.

—2007 (Adj. Sess.). Subsec. (a): Substituted “Vermont state archives and records administration” for “commissioner of buildings and general services” in the first sentence.

—2007. Subsec. (a): Substituted “$10.00” for “$9.50” preceding “fee” in the first sentence.

—2003 (Adj. Sess.). Subsec. (a): Substituted “a $9.50 fee, the” for “a $7.00 to the”, deleted “upon payment of a $9.50 fee to” preceding “the commissioner of buildings and general services” and deleted “, the commissioners” thereafter, and deleted the third sentence.

—2001 (Adj. Sess.) Subsec. (a): In the first sentence, inserted “to” following “upon payment of $7.00 fee”, “upon payment of a $9.50 fee to” preceding “the commissioner”, and “the commissioners” preceding “shall provide”.

—1997. Designated the existing provisions of the section as subsec. (a) and substituted “$7.00” for “$5.00” in the first sentence, and “$3.00” for “$2.00” in the second sentence and added the third sentence in that subsection and added subsec. (b).

—1995 (Adj. Sess.) Substituted “commissioner of buildings and general services” for “commissioner of general services” in the first sentence.

—1985 (Adj. Sess.) In the first sentence, substituted “$5.00” for “$3.00”, “the commissioner or director” for “him” preceding “show” and for “he” preceding “shall not copy” and “furnished” for “he furnishes”.

—1979 (Adj. Sess.) Provided for a $3.00 fee for certified copies of vital records and a $2.00 fee for a vital records search.

—1979. Section amended generally.

—1975. Added reference to use of abbreviated birth certificate form.

Effective date of 2017 amendment of section. 2017, No. 46 , § 63 as amended by 2018, No. 11 (Sp. Sess.), § I.1(b) provides that the amendment of this section shall take effect July 1, 2019.

Subchapter 10. Miscellaneous Fees

§ 1751. Fees when not otherwise provided.

    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) (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:
      1. the sum of $0.60 a folio therefor with a minimum fee of $1.00;
      2. the sum of $2.00 for each official certificate;
      3. for the authentication of documents, $2.00; and
      4. for other services such 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 Armed Forces of the United States, 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 such officers by the town or city wherein such record is maintained.
    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: (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:
      1. the sum of $0.60 a folio with a minimum fee of $1.00 when a copy is reproduced by typewriter or hand;
      2. the sum of $0.25 a page with a minimum fee of $1.00 when a copy is reproduced photographically;
      3. 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;
      4. for the authentication of documents, $5.00;
      5. for a response to a request for a record of criminal history of a person based upon name and date of birth, $30.00;
      6. 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
      7. 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.

HISTORY: 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.

History

Source.

1951, No. 237 . V.S. 1947, § 10,566. 1947, No. 186 , § 1. 1945, No. 191 , § 1. P.L. § 9062. 1933, No. 157 , § 8699. 1921, No. 247 , § 1. 1919, No. 219 , § 8. G.L. §§ 969, 7462, 7467, 7469. 1917, No. 254 , § 7241. 1915, No. 52 . 1910, Nos. 245, 246. 1910, No. 25 , §§ 1, 2. P.S. §§ 6257, 6262. 1908, No. 20 . 1900, No. 114 , § 1. V.S. §§ 5409, 5414. 1892, No. 100 . 1888, No. 59 , § 1. R.L. §§ 1993, 2312, 4538, 4547. 1870, No. 24 , §§ 1, 2. 1870, No. 63 , § 2. 1869, No. 1 , § 2. 1865, No. 34 . 1863, No. 26 , § 2. G.S. 17, § 1. G.S. 126, §§ 42, 52. R.S. 13, § 31. R. 1797, p. 333, § 8. R. 1787, p. 156.

Amendments

—2017. Subdiv. (b)(1)(G): Added.

—2009 (Adj. Sess.) Section amended generally.

—2007 (Adj. Sess.). Subdiv. (b)(5): Substituted “$30.00” for “$10.00”.

Subdiv. (b)(6): Added.

—2003 (Adj. Sess.). Act No. 70 added subdiv. (b)(5).

Act No. 163 deleted “state” preceding “agency” and inserted “of any municipality, state, or federal government” thereafter in the concluding paragraph of subsec. (b).

—1997 (Adj. Sess.). Subsec. (b): Substituted “judicial bureau” for “Vermont traffic and municipal ordinance bureau” in the introductory paragraph.

—1995 (Adj. Sess.) Subsec. (b): Inserted “environmental, family” following “district” and “or officers and employees of the Vermont traffic and municipal ordinance bureau” preceding “furnish” in the introductory paragraph and substituted “$5.00” for “$2.00” in subdivs. (3) and (4).

—1981. Subsec. (b): Established fees in subdivs. (1)-(4), which were added.

—1973 (Adj. Sess.) Subdiv. (a)(1): No. 266 increased folio fee.

Subsec. (b): No. 193 changed “county” court to “superior” court.

—1971. Section amended generally.

—1965. Substituted “district” for “municipal” court.

—1963. Subdiv. (2): Charge for official certificate was changed from fifty cents to $1.00.

—1959. Raised fee from 30 cents per folio to 40 cents, and minimum from 75 cents to $1.

CROSS REFERENCES

Folio defined, see 1 V.S.A. § 116 .

ANNOTATIONS

Copies of records.

The provisions of this section impose no restraint on access to public records, but leave the general matter of reproducing copies of the record where it correctly belongs, within the control of the official custodian, and it is within custodian’s discretion to prescribe how they are to be protected and to what mechanical processes they will be subjected. Matte v. City of Winooski, 129 Vt. 61, 271 A.2d 830, 1970 Vt. LEXIS 202 (1970).

The right of an interested citizen to procure a copy of a public record does not include the right to select the method of reproducing what is recorded. Matte v. City of Winooski, 129 Vt. 61, 271 A.2d 830, 1970 Vt. LEXIS 202 (1970).

A public official, charged with the responsibility of reproducing a document filed for record, may copy by photograph in preference to manual copying. Matte v. City of Winooski, 129 Vt. 61, 271 A.2d 830, 1970 Vt. LEXIS 202 (1970).

Serving writ of replevin.

An officer is entitled to charge for serving writ of replevin for taking and delivering property to plaintiff, in addition to travel, copy, and appraiser’s fees, such sum as would be in proportion to fees provided in other cases for securing attached property, but not for transporting property to plaintiff; nor for holding it until bond is taken, or, ordinarily, until appraisal. Woodward & Stillman v. Amsden, 57 Vt. 446, 1885 Vt. LEXIS 79 (1885).

Notes to Opinions

Copies of records.

Secretary of State may receive fees from any governmental agency, including State agencies, for preparing copies of records. 1956-58 Vt. Op. Att'y Gen. 175.

§ 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.

HISTORY: Amended 1959, No. 158 , § 4, eff. May 5, 1959; 1969, No. 253 (Adj. Sess.), § 2; 1997, No. 59 , § 14, eff. June 30, 1997.

History

Source.

V.S. 1947, § 10,498. P.L. § 8994. G.L. § 852. 1917, No. 44 , § 2. 1915, No. 39 , § 11. 1910, No. 40 , § 10.

Revision note—

Changed “property evaluation and review” to “property valuation and review” to correct manifest typographical error.

Changed reference to “section 4465 of this title” to “section 4467 of this title” to correct an error in the reference.

Reference to “commissioner” changed to “director of the division of property valuation and review” in light of 1977, No. 105 , § 14(a) which created the Division of Property Valuation and Review as the successor and continuation of the Division of Property Taxation in the Department of Taxes, and vested the Director of the Division with all of the powers and duties that had rested with the Commissioner of the Department of Taxes with respect to the administration of property taxes.

Amendments

—1997. Substituted “20 percent” for “ten percent”.

—1969 (Adj. Sess.) Section amended generally.

—1959. Section amended generally.

Effective date of amendments—

1959. 1959, No. 158 , § 6, app. May 5, 1959, provided: “This act [amending §§ 1752, 4441, 4443, 4444, and repealing § 4442 of this title] shall take effect from its passage and shall apply with respect to grand lists for the year 1959 and all subsequent years.”

§ 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.

HISTORY: Amended 1973, No. 249 (Adj. Sess.), § 98, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 214.

History

Source.

V.S. 1947, § 10,503. P.L. § 8999. G.L. § 7433. P.S. § 6232. V.S. § 5388. 1886, No. 94 , § 1. R.L. § 4507. 1878, No. 47 , § 4.

Amendments

—2009 (Adj. Sess.) Deleted “district” preceding “court”.

—1973 (Adj. Sess.) Substituted “district court” for “justice”.

§ 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.

History

Source.

V.S. 1947, § 10,541. P.L. § 9036. G.L. § 7434. 1917, No. 254 , § 7206. 1915, No. 1 , § 199. 1908, No. 178 , §§ 2, 6. P.S. § 6233. V.S. § 1553. R.L. § 1314. G.S. 46, § 16. 1841, No. 9 , § 1.

Notes to Opinions

Fees as costs.

Fees provided for by this section are taxable as costs against defeated party and should not be paid by State. 1940-42 Vt. Op. Att'y Gen. 67.

§ 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.

History

Source.

V.S. 1947, § 10,538. P.L. § 9033. G.L. § 7436. P.S. § 6235. V.S. § 5390. R.L. § 4509. 1864, No. 33 . G.S. 126, § 36.

§§ 1756, 1757. Repealed. 1977, No. 190 (Adj. Sess.).

History

Former §§ 1756, 1757. Former § 1756, relating to justices of peace fees, was derived from 1957, No. 151 , Part I, § 2; V.S. 1947, § 10,496; 1947, No. 184 , § 1.

Former § 1757, relating to fees for accounts and returns, was derived from V.S. 1947, § 10,536; P.L. § 9031; G.L. § 619; P.S. § 452; 1906, No. 208 , § 1; V.S. § 339; 1888, No. 60 , § 1.

Prior law.

Other fees of justices were found in V.S. 1947, § 10,535, repealed by 1957, No. 151 , Part I, § 3.

§ 1758. Masters, auditors, referees, and commissioners.

  1. 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.
  2. 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.

HISTORY: Amended 1971, No. 185 (Adj. Sess.), § 236(a), (b), eff. March 29, 1972; 2015, No. 58 , § E.204.10.

History

Source.

V.S. 1947, § 10,473. P.L. § 8969. 1919, No. 71 , § 2. G.L. § 7400. 1908, No. 56 , § 6. P.S. § 1812. 1906, No. 63 , § 31. V.S. § 1457. 1890, No. 28 . 1888, No. 53 , § 1. 1886, No. 61 , § 1. 1884, No. 129 , § 2. 1884, No. 144 . R.L. § 731. 1878, No. 17 , § 8.

Amendments

—2015. Section amended generally.

—1971 (Adj. Sess.) Substituted “court or by the presiding judge thereof” for “court or by the chancellor, justice or judge thereof”. See note under 4 V.S.A. § 219 .

CROSS REFERENCES

Compensation of auditors, referees, commissioners and masters, see V.R.C.P. 53.

ANNOTATIONS

Masters.

Superior Court had the authority to require parties who voluntarily elected to utilize a master in resolving their dispute to bear the costs of the master’s proceedings. Oehler v. Pyskacek, 171 Vt. 538, 758 A.2d 786, 2000 Vt. LEXIS 189 (2000) (mem.).

§ 1759. Repealed. 2017, No. 160 (Adj. Sess.), § 5(5).

History

Former § 1759. Former § 1759, relating to notaries public, was derived from V.S. 1947, § 10,549. P.L. § 9044. G.L. § 7455. P.S. § 6251. V.S. § 5403. R.L. § 4520. G.S. 126, § 47 and amended by 1959, No. 37 .

§ 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 1434. P.L. § 1400. G.S. § 1636. P.S. § 1382. V.S. § 1035. 1884, No. 147 , § 4.

References in text.

4 V.S.A. § 656 , referred to in this section, was repealed by 2013, No. 67 , § 15.

Revision note—

At the end of the section, substituted “commissioner of finance and management” for “commissioner of finance and information support” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities and authority of the commissioner of that entity to the commissioner of the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was codified as 3 App. V.S.A. ch. 3, § 11, but was revoked and rescinded by E.O. 06-05 (No. 3-46).

Reference to “section 606 of Title 4” was changed to “section 656 of Title 4” to conform to renumbering of latter section.

Reference to “finance director” changed to “commissioner of finance” to conform reference to new title and reorganization of State government. See 3 V.S.A. chapter 45.

Amendments

—2009 (Adj. Sess.) Inserted “assistant” preceding “judges” and deleted “of the superior court” thereafter.

—1983 (Adj. Sess.) Inserted “and information support” following “commissioner of finance”.

—1973 (Adj. Sess.) “County court” was changed to “superior court”. See note under § 71 of Title 4.

—1959 (Adj. Sess.) “Finance director” substituted for “auditor of accounts”. See note set out under § 182 of this title.

§ 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.

History

Source.

V.S. 1947, § 10, 550. 1947, No. 44 , § 5. P.L. § 9045. G.L. § 7461. 1915, No. 1 , § 183. 1912, No. 42 , § 34. P.S. § 6256. V.S. § 5408. R.L. § 4537. 1865, No. 21 , § 6. 1862, No. 18 , § 6.

Pursuant to 1967, No. 331 (Adj. Sess.), § 5, eff. Jan. 1, 1969, this section no longer applies to the unorganized towns and gores in Essex county, or to the supervisor or appraisers for those unorganized towns and gores.

CROSS REFERENCES

Unified towns and gores in Essex county, see 24 V.S.A. chapter 41.

§ 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.

HISTORY: 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.

HISTORY: Added 1987, No. 120 , § 1; amended 1995, No. 178 (Adj. Sess.), § 418, eff. May 22, 1996.

History

Amendments

—1995 (Adj. Sess.) Substituted “or commission” for “of commission” in the first sentence and deleted the second sentence.

CROSS REFERENCES

Approval of accounts of stenographer by presiding officer of a State department, commission, board, or other agency, see 4 V.S.A. § 802 .

Subtitle 2. Taxation

Part 1. General Provisions

Chapter 101. Construction

CROSS REFERENCES

Appraisal value, listed value defined, see § 3481 of this title.

§ 3001. Taxation.

  1. “Person” as used in Parts 2, 4, and 5 of this subtitle shall include a partnership, association, corporation, or limited liability company.
  2. “Party to a civil union” is defined for purposes of this title as under 15 V.S.A. § 1201(5) .
  3. “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.

HISTORY: 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.

History

Source.

V.S. 1947, § 626. P.L. § 571. G.L. § 666. P.S. § 487. V.S. § 355. 1882, No. 2 , § 33.

Revision note

—2006. Substituted “1201(5)” for “1201(4)” in subsec. (b) to correct a statutory cross reference.

Amendments

—2001 (Adj. Sess.) Subsec. (c): Deleted “(other than federal estate and gift tax law)” following the first appearance of “United States tax law”.

—1999 (Adj. Sess.). Rewrote the section heading, designated the existing provisions of the section as subsec. (a), and substituted “ ‘Person’ as” for “The word ‘person’ ” preceding “used in” in that subsection and added subsecs. (b) and (c).

—1997. Added “or limited liability company” at the end of the sentence.

1999 (Adj. Sess.). 1999, No. 91 (Adj. Sess.), § 42(c), provided in part that section 20 of the act, which amended this section, shall apply to taxable years beginning on and after January 1, 2001.

Applicability of 2002 amendment. 2001, No. 140 (Adj. Sess.), § 43(3) provides that section 18 of this act [which amends this section] shall apply to estates of decedents with a date of death on or after January 1, 2005.

1999 (Adj. Sess.). Amendment. 1999, No. 91 (Adj. Sess.), § 41, contained a severability provision applicable to this section.

§ 3002. Taxable property construed.

The words “taxable property” as used in this subtitle shall include taxable estate, both real and personal.

History

Source.

V.S. 1947, § 627. P.L. § 572. 1931, No. 17 , Pt. I, § 35. G.L. § 667. P.S. § 488. V.S. § 356. 1882, No. 2 , § 33.

CROSS REFERENCES

Personal estate defined, see 1 V.S.A. § 129 .

Real estate defined, see 1 V.S.A. § 132 .

ANNOTATIONS

Trust funds.

The taxation of the property interest of beneficiaries in a trust fund located outside the state is embraced in the statutory provisions providing for the taxation of “personal estate,” without specific enumeration; the exemptions enumerated in § 3802 of this title not covering property interest of a cestui que trust under a trust agreement. City of St. Albans v. Avery, 95 Vt. 249, 114 A. 31, 1921 Vt. LEXIS 208, cert. denied, 257 U.S. 640, 42 S. Ct. 51, 66 L. Ed. 411, 1921 U.S. LEXIS 1485 (1921).

§ 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.

History

Source.

V.S. 1947, § 628. P.L. § 573. 1933, No. 157 , § 514.

§ 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.

History

Source.

V.S. 1947, § 629. P.L. § 574. G.L. § 668. 1917, No. 254 , § 643. 1910, No. 29 .

§ 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.

History

Source.

V.S. 1947, § 630. P.L. § 575. G.L. § 669. P.S. § 514. V.S. § 377. R.L. § 282. G.S. 83, § 48. 1855, No. 43 , § 44. 1953, No. 38 .

ANNOTATIONS

Evidence of domicile.

Question being whether plaintiff’s domicile was in New York or in Vermont, there was no error in compelling him, on cross-examination, to state whether he paid any taxes in New York. Fulham v. Howe, 60 Vt. 351, 14 A. 652, 1888 Vt. LEXIS 154 (1888).

In an action against a tax collector, where it is material to show the plaintiff’s residence, evidence is admissible to prove that he registered and voted in another state the same year of the assessment complained of, if coupled with an offer to prove that the laws of such state required a residence there of one year before voting. Fulham v. Howe, 60 Vt. 351, 14 A. 652, 1888 Vt. LEXIS 154 (1888).

Evidence as to one’s intention to engage in business in a particular place is not admissible to show his intention as to making that the place of his legal residence. Fulham v. Howe, 60 Vt. 351, 14 A. 652, 1888 Vt. LEXIS 154 (1888).

Liability of listers.

If listers assess personal property of one who has removed from that town, leaving no property there, under the honest belief that his removal was for purpose of avoiding listing and taxation, or of changing his list to another town, they act in this respect judicially, and are not liable to the person so assessed, even though such belief was erroneous. Davis v. Strong, 31 Vt. 332, 1858 Vt. LEXIS 141 (1858).

§ 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.

HISTORY: 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.

HISTORY: Added 1977, No. 105 , § 11.

Chapter 103. Department of Taxes; Commissioner of Taxes

CROSS REFERENCES

Department of Taxes within Agency of Administration, see 3 V.S.A. § 2202 .

Subchapter 1. General Provisions

History

Revision note—

Subchapter heading was added in view of 1991, No. 186 (Adj. Sess.), § 7, which added subchapter 2 of this chapter.

ANNOTATIONS

Construction with other law.

The tax return exception to the Access to Public Records Act and the State tax return exception are not construed in pari materia. Finberg v. Murnane, 159 Vt. 431, 623 A.2d 979, 1992 Vt. LEXIS 211 (1992).

The exception against disclosure of tax returns under the Access to Public Records Act does not cover the name and address of the taxpayer. Finberg v. Murnane, 159 Vt. 431, 623 A.2d 979, 1992 Vt. LEXIS 211 (1992).

§ 3101. Powers and duties of Commissioner.

  1. The Department of Taxes shall be administered by a Commissioner of Taxes.
  2. 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 regulations.
    10. Administer and enforce all taxes within his or her 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 such 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 988. P.L. § 924. 1927, No. 20 , § 2. G.L. § 968. 1915, No. 1 , § 57. 1910, No. 38 , § 1. P.S. § 688. 1906, No. 214 , § 16. 1902, No. 20 , § 2. V.S. § 548. 1890, No. 3 , § 2. 1882, No. 1 , § 2.

Revision note—

Deleted “the commissioner shall” at the beginning of subdivs. (b)(10) and (11), as redundant in view of the introductory paragraph of subsec. (b).

1959, No. 329 (Adj. Sess.), contained two sections numbered “41”. The other § 41 amended § 13 of Title 33 which was repealed by 1967, No. 147 , § 53(a).

Amendments

—2015 (Adj. Sess.). Subdiv. (b)(11): Deleted the final sentence.

—2015. Subdiv. (b)(5): Amended generally.

—2013 (Adj. Sess.). Subdivs. (b)(1) and (b)(11): Inserted “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” at the end.

—2011 (Adj. Sess.). Subdiv. (b)(11): Inserted a semicolon after “pertinent” at the end of the subdivision.

Subdiv. (b)(13): Added.

—2007. Subdiv. (b)(12): Repealed.

—2005. Subdiv. (b)(12): Substituted “January 15” for “June 1”.

—2001 (Adj. Sess.) Subdiv. (b)(12): Added.

—1991 (Adj. Sess.) Subsec. (b): Deleted “and” at the end of subdiv. (8) and added subdivs. (10) and (11).

—1987 (Adj. Sess.) Section amended generally.

—1959 (Adj. Sess.) Subsec. (a): Added.

Subsec. (b): Prior section designated as “(b)”.

Effective date of amendments—

2011 (Adj. Sess.). 2011, No. 127 (Adj. Sess.), § 7 provides that the amendment to this section by that act shall take effect January 1, 2013.

CROSS REFERENCES

Department of Taxes within Agency of Administration, see 3 V.S.A. § 2202 .

Appointment of Commissioner, see 3 V.S.A. § 2251 .

§ 3102. Confidentiality of tax records.

  1. 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, he or she shall, in addition, be dismissed from office and be incapable of holding any public office for a period of five years thereafter.
  2. 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.”
  3. 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.
  4. 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. Subdivision (d)(3) effective until March 1, 2022; see also subdivision (d)(3) effective March 1, 2022 set out below.

      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, or meals and rooms 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 ;

      (3)

      Subdivision (d)(3) effective March 1, 2022; see also subdivision (d)(3) effective until March 1, 2022 set out above.

      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;
    5. Subdivision (d)(5) effective until July 1, 2026; see also subdivision (d)(5) effective July 1, 2026 set out below.

      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;

      (5)

      Subdivision (d)(5) effective July 1, 2026; see also subdivision (d)(5) effective until July 1, 2026 set out above.

      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 thereto.
  5. The Commissioner may, in his or her discretion and subject to such conditions and requirements as he or she 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 his or her 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. Subdivision (e)(8) effective until July 1, 2022; see also subdivision (e)(8) effective July 1, 2022 set out below.

      To the Commissioner of Labor for the purpose of establishing the identity or liability of employers for unemployment compensation and for the purpose of verifying the earnings of individuals in order to determine the amount of Pandemic Unemployment Assistance they are eligible to receive.

      (8)

      Subdivision (e)(8) effective July 1, 2022; see also subdivision (e)(8) effective until July 1, 2022 set out above.

      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. To the Joint Fiscal Office or its agent, provided the disclosure relates to a taxpayer claiming a tax credit pursuant to section 5930n, 5930p, 5930q, or 5930r of this title or the credits claimed thereunder, and the disclosure is reasonably necessary for the Joint Fiscal Office or its agent to perform its duties.
    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.
  6. Notwithstanding the provisions of this section, information obtained from the Commissioner for Children and Families under 33 V.S.A. § 112(c) , from the Vermont Student Assistance Corporation under 16 V.S.A. § 2843 , or the Dental Health Program under 33 V.S.A. § 4507 , or a job development zone under subsection 5926(c) of this title shall 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. Notwithstanding subsection (j) of this section, the Commissioner or a municipal official acting as his or her agent may provide the information in subsection 6066a(f) of this title to the following people 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 he or she 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.
    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. (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:
      1. mechanisms to prevent the identification of individual taxpayers, including the redaction of any information that identifies a particular taxpayer;
      2. protocols for handling and transmitting returns and return information;
      3. the designation of specific employees of the Joint Fiscal Office with access to the information provided by the Department of Taxes; and
      4. the incorporation of penalties for unauthorized disclosures under subsections (a) and (h) of this section.
  12. 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.
  13. 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 disclose the data in summary or aggregated form that does not directly or indirectly identify individual deposit initiators except to the Secretary of Natural Resources in relation to the administration of 10 V.S.A. chapter 53.

HISTORY: 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, 2022.

History

Source.

V.S. 1947, § 989. P.L. § 925. 1929, No. 24 , § 1. G.L. § 969. 1915, No. 52 .

References in text.

Sections 5930n, 5930p, 5930q and 5930r of this title, referred to in subdiv. (e)(12), were repealed by 2005, No. 183 (Adj. Sess.), § 16(b).

Subsec. 5926(c) of this title, referred to in subsec. (f), was repealed by 2005, No. 75 , § 16, effective June 23, 2005.

Revision note

—2019. Substituted “calculating credits” for “calculating adjustments” in the second sentence of subsec. (j) and “credit applies” for “adjustment applies” in subdiv. (k)(1) in accordance with 2019, No. 51 , § 33.

—2013. In subdiv. (b)(6), deleted “, but not limited to, ” following “including” in accordance with 2013, No. 5 , § 4.

—2007. In subsec. (f), substituted “subsection 112(c) of Title 33” for “subsection 2552(c) of Title 33” to correct a typographical error.

Revision note—. In subsec. (f), changed “subsection (c) of section 2552 of Title 33” to “subsection (c) of section 112 of Title 33” and “section 3307 of Title 33” to “section 4507 of Title 33”, pursuant to 1989, No. 148 (Adj. Sess.), and acts amendatory thereof, which made substantial changes in the organization and content of Title 33 in the process of recodifying that title.

Editor’s note

—2019. Subdiv. (e)(21) was added as subdiv. (e)(20) by 2019, No. 63 , § 2 but was redesignated as subdiv. (e)(21) to avoid a conflict with subdiv. (e)(20) as added by 2019, No. 51 , § 11.

—2017. Subdiv. (d)(7) was added as subdiv. (d)(6) by 2017, No. 73 , § 17 but was redesignated as subdiv. (d)(7) to avoid a conflict with subdiv. (d)(6) added by 2017, No. 69 , § A.2.

Amendments

—2021. Subdiv. (e)(8): Act No. 3, § 60, retroactively effective January 15, 2021, inserted “, for the purpose of verifying the earnings of individuals in order to determine the amount of Pandemic Unemployment Assistance they are eligible to receive, and for the purpose of verifying and correcting personally identifiable information necessary for the creation and issuance of tax documents to individuals who received benefits through unemployment insurance and related federal and State benefit programs administered by the Department of Labor” following “unemployment compensation”.

Act No. 3, § 61, effective July 1, 2021, inserted “and” following “compensation” and deleted “, and for the purpose of verifying and correcting personally identifiable information necessary for the creation and issuance of tax documents to individuals who received benefits through unemployment insurance and related federal and State benefit programs administered by the Department of Labor” following “receive”.

Act No. 3, § 62, effective July 1, 2022, deleted “and for the purpose of verifying the earnings of individuals in order to determine the amount of Pandemic Unemployment Assistance they are eligible to receive” following “compensation”.

—2019 (Adj. Sess.). Subdiv. (d)(3): Act No. 164 inserted “or cannabis excise” following “meals and rooms”.

Subdiv. (d)(5): Act No. 85, § 7, added “, and 21 V.S.A. §§ 346 , 387, 712, and 1379”.

Subdiv. (d)(5): Act No. 85, § 14, effective July 1, 2026, deleted “, and 21 V.S.A. §§ 346 , 387, 712, and 1379” from the end.

Subdiv. (e)(8): Act No. 99, § 1, effective Apr. 28, 2020 and applying retroactively to March 27, 2020, added “and for the purpose of verifying the earnings of individuals in order to determine the amount of Pandemic Unemployment Assistance they are eligible to receive pursuant to the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, § 2102.”

Subdiv. (e)(8): Act No. 99, § 2, effective Jan. 15, 2021, deleted “and for the purpose of verifying the earnings of individuals in order to determine the amount of Pandemic Unemployment Assistance they are eligible to receive pursuant to the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, § 2102” from the end.

Subsec. (n): Added by Act No. 175.

—2019. Subdiv. (d)(8): Added by Act No. 51.

Subdiv. (e)(15): Act No. 73 substituted “Division” for “Department”.

Subdiv. (e)(20): Added by Act No. 51.

Subdiv. (e)(21): Added by Act No. 63.

—2017. Subsec. (b): Act No. 73 substituted “chapter” for “section” at the end of the introductory language.

Subdiv. (d)(5): Act 73 inserted “; and” at the end of the subdiv.

Subdiv. (d)(6): Added by Act. No. 69.

Subdiv. (d)(7): Added by Act. No. 73.

Subdiv. (e)(11): Act No. 69 inserted “and” following “title;” and deleted “; and 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 and is reasonably necessary for the Council to perform its duties under that subchapter” following “title”.

Subdiv. (e)(17): Act No. 73 inserted “, 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” following “chapter 141”.

Subdiv. (e)(18): Added by Act No. 73.

Subdiv. (e)(19): Act No. 73 redesignated former subdiv. (e)(18) as present subdiv. (e)(19).

—2015 (Adj. Sess.). Subdiv. (e)(3): Act No. 134 inserted “or Vermont municipality that administers its own local option sales tax or meals and rooms tax or gross receipts tax under its charter” following “any other state”, and inserted “or municipality” following “that state” twice.

Subdiv. (e)(11): Act No. 157 substituted “chapter 105, subchapter 2” for “section 5930a” preceding “of this title”, “that subchapter” for “subsection 5930a(h)” following “General Assembly under”, “chapter 105, subchapter 2” for “sections 5930a and 5930b” following “applicant under”, deleted “tax” preceding “incentive” and substituted “that subchapter” for “sections 5930a and 5930b” following “duties under”.

Subdiv. (e)(13): Act No. 97 substituted “Victim” for “Victims”.

Subdivs. (e)(17) and (e)(18): Added by Act No. 134.

—2013 (Adj. Sess.). Subsec. (m): Added.

—2013. Added subdiv. (e)(16) and subsec. (l).

—2011 (Adj. Sess.). Subdiv. (e)(15): Added.

Subsecs. (j) and (k): Added.

—2011. Subdiv. (b)(7): Added.

—2009. Subdiv. (d)(3): Substituted “chapter 205 or 239 of this title or section 1942 of Title 10” for “chapters 201, 205, or 239 of this title”.

—2007 (Adj. Sess.). Subdiv. (d)(5): Inserted “if such return or return information relates to chapter 205 of this title or subchapters 1A and 1B of chapter 19 of Title 33” and “chapter 40 of Title 7, subchapter 2A of chapter 173 of Title 20; and”.

Subdiv. (e)(14): Added.

—2005 (Adj. Sess.). Subdiv. (e)(8): Act No. 103 substituted “commissioner of labor” for “commissioner of employment and training”.

Subdiv. (e)(11): Act No. 184 substituted “sections 5930a and 5930b” for “section 5930a” in two places.

Subsec. (f): Act No. 174 substituted “for children and families” for “of prevention, assistance, transition, and health access”, “2552(c)” for “(c) of section 2552” and “5926(c)” for “(c) of section 5926”.

—2003. Subdiv. (d)(5): Added.

Subdiv. (e)(13): Deleted “the commissioner of corrections or” preceding “the center”.

—2001 (Adj. Sess.). Act No. 114 added subdiv. (e)(12).

Act No. 138, in subdiv. (e)(11), inserted “to the department of economic development for the purposes of subsection 5922(f) of this title”; and changed punctuation at end of sentence.

Act No. 134 purported to add a subdiv. “(e)(12)”, which was redesignated as subdiv. “(e)(13)” to avoid conflict with subdiv. (12) added by Act No. 114.

—1999 (Adj. Sess.). Subsec. (e): Act No. 159 made a minor change in punctuation in subdiv. (10) and added subdiv. (11).

Subsec. (f): Act No. 147 substituted “commissioner of prevention, assistance, transition, and health access” for “commissioner of social welfare”.

—1995. Subdiv. (d)(3): Deleted “or” following “these taxes” and added “or whether a person holds a valid license under chapters 201, 205 or 239 of this title” following “free of tax”.

—1993. Subdiv. (b)(4): Inserted “or claim for credit, rebate or refund” preceding “the investigation”.

Subdiv. (e)(1): Added “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” following “general public”.

—1991 (Adj. Sess.) Subsec. (h): Inserted “(other than information disclosed under subsection (i) of this section)” preceding “shall be subject” in the first sentence.

Subsec. (i): Added.

—1989 (Adj. Sess.) Subsec. (e): Added subdivs. (9) and (10).

—1987 (Adj. Sess.) Section amended generally.

—1965. Substituted “district” for “municipal” court.

Effective date of 2003 amendment to subdiv. (e)(13). 2003, No. 57 , § 15 provides that § 12 of that act, which amends subdiv. (e)(13) of this section, shall take effect on July 1, 2004.

Effective date of 2017 amendment. 2017, No. 69 , § N.1(b) provides that the amendments to this section shall take effect on the date of enactment of the fiscal year 2018 annual budget bill, which occurred on June 28, 2017.

Effective date of 2019 amendment. 2019, No. 63 , § 13, provided that the amendment to this section by section 2 of the act was to take effect on January 1, 2020.

Effective date of 2019 (Adj. Sess.) amendments. 2019, No. 85 (Adj. Sess.), § 24(b) provides that the amendment to this section by 2019, No. 85 (Adj. Sess.), § 14 shall take effect on July 1, 2026.

2019, No. 99 (Adj. Sess.), § 3(b) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. 1 [which amended subdiv. (e)(8) of this section] shall take effect on passage [April 28, 2020] and apply retroactively to March 27, 2020.”

2019, No. 99 (Adj. Sess.), § 3(c) provides that the amendment to this section by 2019, No. 99 (Adj. Sess.), § 2 shall take effect January 15, 2021.

2019, No. 164 (Adj. Sess.), § 33(d) provides that 2019, No. 164 (Adj. Sess.) § 14a shall take effect March 1, 2022.

Effective dates and retroactive applicability of 2021 amendments to subdiv. (e)(8). 2021, No. 3 , § 64(a)(5) provides that the amendments to subdiv. (e)(8) of this section by § 60 of that act “shall take effect on passage [March 2, 2021] and shall apply retroactively to January 15, 2021.”

2021, No. 3 , § 64(b) provides that the amendments to subdiv. (e)(8) of this section by § 61 of that act “shall take effect on July 1, 2021.”

2021, No. 3 , § 64(c) provides that the amendments to subdiv. (e)(8) of this section by § 62 of that act “shall take effect on July 1, 2022.”

Expiration of 2003 amendment to subdiv. (e)(13). 2003, No. 57 , § 16 provides for the repeal of § 12 of that act, which amended subdiv. (e)(13) of this section, on July 1, 2007.

Public agency; disclosure of property tax adjustment information. 2011, No. 70 (Adj. Sess.), § 1 provides: “The Vermont Supreme Court held in In re: H.S. 122 (Vt. Dec. 22, 2011) that property tax adjustment information on municipal property tax bills is confidential under 32 V.S.A. § 3102 and not subject to inspection and copying under the Vermont Public Records Act. Prior to the Vermont supreme court’s ruling in In re: H.S. 122, the Vermont attorney general and the Vermont department of taxes advised public agencies that property tax adjustment information was public and subject to inspection and copying under the Public Records Act. Consequently, notwithstanding 1 V.S.A. § 214 or any other provision in law, a public agency or an employee or agent of a public agency shall not be held liable for a violation of the Public Records Act, for a violation of 32 V.S.A. § 3102 , or for a claim based on invasion of privacy as a result of disclosure of property tax adjustment information prior to the issuance of the mandate pursuant to Rule 41 of Vermont Rules of Appellate Procedure of the Vermont supreme court in In re: H.S. 122. As used in this section, ‘public agency’ shall have the same meaning as defined in 1 V.S.A. § 317(a)(2) .”

CROSS REFERENCES

Public inspection of records relating to computer assisted property tax administration program, see § 3465 of this title.

Public inspection of records relating to current use value appraisal program, see § 3761 of this title.

ANNOTATIONS

Applicability.

In view of the statute regarding the confidentiality of tax records, information is either publicly accessible when sought from either the Tax Department or by employees of a municipality or confidential as to both. In re HS-122, 2011 VT 138, 191 Vt. 562, 38 A.3d 1163, 2011 Vt. LEXIS 137 (2011) (mem.).

In the statute regarding the confidentiality of tax records, the Legislature has chosen a policy of broad confidentiality for income tax information, which the courts must implement. In re HS-122, 2011 VT 138, 191 Vt. 562, 38 A.3d 1163, 2011 Vt. LEXIS 137 (2011) (mem.).

Disclosure to grand jury.

A qualified privilege exists under this section prohibiting disclosure of tax records to a grand jury except by court order. In re Grand Jury Subpoena, 118 F.R.D. 558, 1987 U.S. Dist. LEXIS 13001 (D. Vt. 1987).

Commissioner of Taxes was not subject to contempt for declining to comply with grand jury subpoena requiring production of tax records kept by Department of Taxes, since grand jury subpoena was not a court order. In re Grand Jury Subpoena, 118 F.R.D. 558, 1987 U.S. Dist. LEXIS 13001 (D. Vt. 1987).

Tax adjustment report.

State property tax adjustment report was confidential under the statute regarding the confidentiality of tax records. The total property tax adjustment figure was a datum prepared by the Department of Taxes with respect to a person; thus, the report, compiling these figures for persons in the town, came within the ambit of return information as defined in the statute. In re HS-122, 2011 VT 138, 191 Vt. 562, 38 A.3d 1163, 2011 Vt. LEXIS 137 (2011) (mem.).

Tax adjustment statute requires the Tax Commissioner to transfer the HS-122 State property tax adjustment report to municipalities; thus, town employees, as the recipients of the return information, are subject to the confidentiality requirements of the statute regarding the confidentiality of tax records. They are therefore prohibited by law from disclosing the requested information. In re HS-122, 2011 VT 138, 191 Vt. 562, 38 A.3d 1163, 2011 Vt. LEXIS 137 (2011) (mem.).

§§ 3103-3105. Repealed. 1987, No. 243 (Adj. Sess.), § 70, eff. June 13, 1988.

History

Former §§ 3103-3105. Former § 3103, relating to Commissioner’s attendance at meetings of national tax association, was derived from V.S. 1947, § 990; P.L. 926; G.L. § 970; 1915, No. 53 .

Former § 3104, relating to appointment of special field agents, was derived from V.S. 1947, § 991; P.L. § 927; 1927, No. 20 , § 3; G.L. § 971; 1915, No. 54 , § 1 and amended by 1977, No. 105 , § 14(a).

Former § 3105, relating to oath of, and compensation for special field agents, was derived from V.S. 1947, § 992; P.L. § 928; 1927, No. 20 , § 4; G.L. § 972; 1915, No. 54 , § 2 and amended by 1977, No. 105 , § 14(a).

§§ 3106, 3107. Repealed. 1961, No. 217, § 10, eff. July 13, 1961.

History

Former §§ 3106, 3107. Former §§ 3106, 3107 relating to partnership and corporation bulletin were derived from 1953, No. 180 , §§ 1, 2.

§ 3108. Establishment of interest rate.

  1. 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.
  2. 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 thereto 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;
    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.
    5. For the purposes of this subsection, a return shall not be treated as filed until it is filed in processible form, which means that such return is filed on a permitted form and such return contains the taxpayer’s name, address, and identifying number and the required signature and contains sufficient information (whether on the return or on required attachments) to permit the mathematical verification of the tax liability shown on the return.
    6. The provisions of this subsection shall apply notwithstanding any other provision of law to the contrary.

HISTORY: 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.

History

References in text.

The Federal Reserve Board, referred to in subsec. (a), is codified at 12 U.S.C. chapter 3.

Amendments

—2019 (Adj. Sess.). Subsec. (a): Inserted “unpaid tax liabilities and” in the first sentence; deleted the former second sentence; and substituted “rate” for “rates” in the present second sentence.

—2019. Subsec. (a): In the first sentence, substituted “an annual” for “a,” and substituted “that” for “which”; deleted the former second sentence; in the third sentence, inserted “an,” substituted “rate” for “and monthly rates” preceding “of interest,” and substituted “rate” for “and monthly rates” preceding “established for”.

—2011 (Adj. Sess.). Subsec. (a): Deleted “unpaid tax liabilities and” preceding “tax”; substituted “quarter” for “whole” preceding “percent”, “An” for “The” preceding “annual” and “shall” for “may” following “established”; added the present third sentence; substituted “rates” for “rate” preceding “established”, and “Board” for “System” following “Reserve”

Subdiv. (b)(2): Inserted “other than a corporate income tax return” following “return” and “, 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;” following “date”.

—2005 (Adj. Sess.). Subdiv. (b)(4): Added.

—1999. Subsec. (a): Substituted “October 1” for “December 1” following “commencing on” in the first sentence.

—1983. Subsec. (a): Designated, inserted “and tax overpayments” following “tax liabilities” in the first sentence, and added the second sentence.

Subsec. (b): Added.

Effective date of subdiv. (b)(4). 2005, No. 185 (Adj. Sess.), § 17(1) provides that section 4 of that act, which added subdiv. (b)(4), shall take effect January 1, 2007 and shall apply to claims filed in 2007 and after.

Reimbursement for cash register reprogramming. 1993, No. 1 (Sp. Sess.), § 5a, eff. Sept. 1, 1993, provided: “Notwithstanding any other provisions of law, a vendor in good standing shall be entitled to claim reimbursement of all or a portion of its expenditure for reprogramming of cash registers which were in use at the place of business on and after June 30, 1993. Applications must be filed with the Department of Taxes on or before November 1, 1993. The amount of reimbursement shall be equal to $350,000.00 divided by the number of qualified applicants, but in no event shall it exceed the actual cost to the vendor of reprogramming its cash registers. Provisions of section 3108 of Title 32 shall not apply to reimbursement payments under this section.”

1983, No. 59 , § 13, eff. April 22, 1983, provided in pertinent part: “This act shall take effect from passage . . . [and] shall affect any unpaid tax liability or overpayment on January 1, 1983 and thereafter, except that . . . statutory 3108(b) shall apply to all overpayments, whenever made.”

§ 3109. Sheriffs and collection agencies; contracts for the collection of taxes; the use of bank or credit cards for the payment of delinquent taxes.

  1. The Commissioner may contract with one or more sheriffs or constables for the collection of taxes by the sheriff’s or constable’s performing services that he or she is authorized by law to provide, 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.
  2. 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.
  3. 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.
  4. 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.
  5. As used in this section, the word “Commissioner” shall include the Commissioner of Motor Vehicles.

HISTORY: 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.

History

Amendments

—2003 (Adj. Sess.). Subsec. (e): Added.

—1995 (Adj. Sess.) Subsec. (b): Deleted “who are not residents or physically within Vermont at the time collection is sought” following “taxpayers” in the first sentence.

Subsec. (c): Amended generally.

—1995. Subsec. (a): Added the fourth sentence.

—1993. Added a new subsec. (c) and redesignated former subsec. (c) as subsec. (d).

—1991 (Adj. Sess.) Repealed former subsec. (c), redesignated former subsec. (d) as present subsec. (c) and inserted “license fees” preceding “interest” in that subsection.

—1987 (Adj. Sess.) Added present subsec. (c) and redesignated former subsec. (c) as present subsec. (d).

—1985 (Adj. Sess.) Subsec. (b): Added the second and third sentences.

Application of 1985 (Adj. Sess.) amendment. 1985, No. 266 (Adj. Sess.), § 9, eff. June 4, 1986, provided that the amendment to this section shall be effective for taxable years beginning on and after January 1, 1986.

Termination of 1993 amendment. 1993, No. 60 , § 286(b), provided: “Sec. 24a of this act [which added subsec. (c) of this section] shall terminate June 30, 1995, unless further extended by act of the General Assembly, except that any delinquent accounts referred to a collection agency before June 30, 1995 may be collected under the terms of this act.”

Applicability of 1995 (Adj. Sess.) amendment. 1995, No. 82 (Adj. Sess.), § 3, eff. Feb. 21, 1996, provided that the amendment to subsecs. (b) and (c) of this section by section 1 of the act is repealed effective July 1, 1998. However, 1997, No. 156 (Adj. Sess.), § 1 provides: “Notwithstanding Sec. 3 of No. 82 of the Acts of 1995 (Adj. Sess.), Secs. 1 and 2 of No. 82, authorizing the commissioner of taxes to contract with private collection agencies for collection of taxes and requiring quarterly reports to the legislature, are not repealed July 1, 1998, but shall continue in effect until further action of the General Assembly.”

CROSS REFERENCES

Collection of fines, forfeitures, and penalties, see 13 V.S.A. § 7171 .

§ 3109a. Repealed. 2003, No. 70 (Adj. Sess.), § 32, eff. March 1, 2004.

History

Former § 3109a. Former § 3109a, relating to authority to contract for collection of delinquent property taxes, was derived from 1997, No. 71 (Adj. Sess.), § 79.

§ 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.

HISTORY: Added 1991, No. 186 (Adj. Sess.), § 5, eff. May 7, 1992; amended 2003, No. 61 , § 3; 2021, No. 73 , § 4.

History

Amendments

—2021. Section amended generally.

—2003. Section amended generally.

§ 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.

HISTORY: Added 2001, No. 144 (Adj. Sess.), § 14, eff. June 21, 2002.

§ 3112. Allocation of payments.

  1. 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.
  2. 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.
  3. The provisions of this section shall apply notwithstanding any appeal by the taxpayer.

HISTORY: Added 1985, No. 263 (Adj. Sess.), § 3, eff. June 4, 1986.

§ 3113. Requirement for obtaining license, governmental contract, or employment.

  1. As used in this section, “agency” means any unit of State government, including agencies, departments, boards, commissions, authorities, or public corporation.
  2. 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 such 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 such 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.
  3. Every agency shall, upon request of the Commissioner, furnish a list of licenses and contracts issued or renewed by such 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 such licensee or provider, and such other information as the Commissioner may require.
  4. 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 such 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 such 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.
  5. 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 such contract, unless such 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.
  6. 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 such taxes is not under appeal.  For purposes of such 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 such license revocation or suspension.  Any findings made by the agency with respect to such license revocation or suspension shall be made only for the purposes of such proceeding and shall not be relevant to or introduced in any other proceeding at law, except for any appeal from such 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 such certificate.  Any person aggrieved by the decision of the agency may appeal therefrom in accordance with the provisions of 3 V.S.A. chapter 25.
  7. 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.
  8. 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.
  9. 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 such 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 such position or who returns to any position in State government as a result of a placement right or reduction in force recall right.

HISTORY: 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.

History

Amendments

—2015. Subsec. (d): Added the last sentence.

—2013. Subsec. (b): Added “, 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”.

—2009 (Sp. Sess.). Section heading: Deleted “or” following “license” and added “or employment” following “contract”.

Subsec. (c): Substituted “shall include” for “should include” and “Social Security” for “social security” in the last sentence.

Subsec. (i): Added.

—2003 (Adj. Sess.). Subsec. (c): Substituted “shall, upon request of the commissioner, furnish a list” for “shall, at least annually, furnish to the commissioner a list” in the first sentence.

—1999. Subsec. (d): Added the phrase “or if under appeal, the commissioner has determined that the tax or interest or penalty is in jeopardy” following “not under appeal” in the first sentence.

—1997. Subdiv. (g)(1): Added “and all returns have been filed”.

—1991. Subsec. (b): Inserted “grant, issue or” preceding “renew” and substituted “sign a written declaration” for “verify in writing” following “first” and “declaration” for “statement” following “date such”.

Subsec. (h): Added.

ANNOTATIONS

Attorney.

Administrative rule relating to licensing of attorneys contains no requirement that an attorney timely file all returns to be considered in good standing with respect to taxes, and the Vermont Legislature’s addition of the timely filing requirement to the definition of good standing in a general licensing statute is strong evidence that the concept was not in the preexisting text of the administrative order. Therefore, an attorney who failed to file timely tax returns, but owed no taxes, was in good standing with respect to taxes and did not make a misrepresentation when electronically renewing her attorney license. In re Obregon, 2016 VT 32, 201 Vt. 463, 145 A.3d 226, 2016 Vt. LEXIS 30 (2016).

Cited.

Cited in SBC Enterprises, Inc. v. City of South Burlington Liquor Control Commission, 166 Vt. 79, 689 A.2d 427, 1996 Vt. LEXIS 115 (1996).

§ 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 owners of unclaimed property prior to notice being given to such persons pursuant to 27 V.S.A. § 1249 . If any such owner owes taxes to the State, the Commissioner, after notice to the owner, may request and the Treasurer shall transfer the abandoned property of such 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.

HISTORY: Added 2009, No. 1 (Sp. Sess.), § H.20, eff. June 2, 2009.

History

References in text.

27 V.S.A. § 1249 , referred to in this section, was repealed by 2019, No. 93 (Adj. Sess.), § 1. For the notice requirements to apparent owners of property presumed abandoned, see 27 V.S.A. chapter 18, subchapter 5.

§ 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 .

HISTORY: Added 2011, No. 45 , § 1, eff. May 24, 2011; amended 2019, No. 73 , § 44.

History

Amendments

—2019. Deleted “Lottery” following “games, the,” added “of Liquor and Lottery” preceding “may, before issuing,” substituted “Department of Liquor and Lottery” for “Lottery Commission,” and substituted “the” for “such” following “the amount of”. su

§ 3114. Bonding requirements.

  1. When the Commissioner, in his or her discretion, deems it necessary to protect the revenues collectible by the Commissioner, he or she 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 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, 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 such person is or was associated as principal, partner, officer, director, employee, agent, or incorporator.
  2. In the event that the Commissioner determines that such person is to file a bond, he or she 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 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 of the Commissioner shall be complied with within 15 days after the giving of notice thereof.  Any person aggrieved by a determination of the Commissioner may appeal therefrom in accordance with section 5885 of this title, but the determination of the Commissioner may be overturned on appeal only for abuse of discretion.
  3. 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 such 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.
  4. 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.

HISTORY: 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.

History

Amendments

—2011 (Adj. Sess.). Subsec. (a): Substituted “commissioner of financial regulation” for “commissioner of banking, insurance, securities, and health care administration”.

—2005. Subsec. (c): Added the second and third sentences.

—1995 (Adj. Sess.) Subsec. (a): Substituted “commissioner of banking, insurance, securities, and health care administration” for “commissioner of banking, insurance, and securities” in the first sentence.

—1989 (Adj. Sess.) Subsec. (a): Substituted “commissioner of banking, insurance, and securities” for “commissioner of banking and insurance” in the first sentence.

§ 3115. [Repealed.]

History

Editor’s note—

Former § 3115 relating to tax amnesty program was deleted since, by its own terms, it is now obsolete. Section 3115 was derived from 1987, No. 113 , § 4, eff. June 26, 1987.

Subchapter 2. Administration

§ 3201. Administration of taxes.

  1. Commissioner authority.   In the administration of taxes, the Commissioner may:
    1. Adopt, amend, and enforce reasonable rules, orders, and regulations 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 his or her 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 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 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, trust, or is a corporation or business entity not having a place of business in this State, and 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, regulations, 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 of 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 his or her jurisdiction.
    6. Determine the form in which returns and reports shall be filed and what shall constitute a signature on such 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

HISTORY: 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.

History

Revision note

—2021. In the second sentence of subsec. (e), inserted “Department” preceding “shall” in accordance with 2003, No. 152 (Adj. Sess.), § 21.

Amendments

—2019. Subsec. (a): Added the subsection heading.

—2015. Subdivs. (a)(9) and (10): Added.

—2009 (Adj. Sess.) Subdiv. (a)(4): Inserted “or business entity” following “a corporation” in the second sentence, and added the third and fourth sentences.

—2007. Subdiv. (a)(8): Added.

—2003. Subsec. (e): Added.

—1999. Subdiv. (a)(6): Amended generally.

Subsec. (d): Rewrote the second sentence.

—1995 (Adj. Sess.) Subdiv. (a)(7): Added.

Subsec. (d): Added.

—1993. Subdiv. (a)(5): Inserted “penalties, interest or other charges or fees” following “taxes” and deleted “including penalties, interest or other charges or fees” following “jurisdiction”.

Effective date of amendments—

2003 (Adj. Sess.). 2003, No. 152 (Adj. Sess.), § 23(5), eff. June 7, 2004, provided that the amendment to this section, by § 21 of the act, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate Streamlined Sales and Use Tax Agreement, but no earlier than July 1, 2005.

CROSS REFERENCES

Procedure for adoption of administrative rules, see 3 V.S.A. chapter 25.

ANNOTATIONS

Assessment of penalty.

Pursuant to the statute regarding administration of taxes, the Commissioner of Taxes has broad statutory authority to waive, reduce, or compromise any of the taxes, penalties, interest, or other charges or fees within the Commissioner’s jurisdiction. The plain meaning of this provision grants the Commissioner discretion to amend or impose a penalty; thus, the Commissioner did not lack the discretion to impose a penalty different from that assessed by the Department of Taxes. TD Banknorth, N.A. v. Dep't of Taxes, 2008 VT 120, 185 Vt. 45, 967 A.2d 1148, 2008 Vt. LEXIS 132 (2008).

There was no merit to a taxpayer’s contention that its due process rights were violated due to the differential between the penalty requested by the Department of Taxes and the penalty imposed by the Commissioner of Taxes. The taxpayer had full notice that the Department intended to argue for the imposition of a penalty at a hearing and that the Commissioner had the authority to waive, reduce, or compromise any penalties imposed by the Department; as such, the taxpayer was not deprived of an opportunity to respond and present evidence and argument on all issues involved in the appeal hearing. TD Banknorth, N.A. v. Dep't of Taxes, 2008 VT 120, 185 Vt. 45, 967 A.2d 1148, 2008 Vt. LEXIS 132 (2008).

§ 3202. Interest and penalties.

  1. 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 date prescribed therefor, 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.
  2. 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 date prescribed therefor or the date as extended pursuant to section 5868 of this title, unless the taxpayer affirmatively shows that such 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 date prescribed therefor, 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 of this title (estimations of nonwithheld income tax), 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 of this title for estimation of nonwithheld income tax) on the date prescribed therefor, 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 date prescribed therefor, 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 (6) shall be in addition to any other civil or criminal penalties provided by law.
    7. 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.

HISTORY: 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.

History

Amendments

—2019 (Adj. Sess.). Subdiv. (b)(5): Amended generally.

—2013. Added the present subdiv. (b)(6) and renumbered former subdiv. (b)(6) as present subdiv. (b)(7).

—2001 (Adj. Sess.) Subdiv. (b)(2): Act No. 140, § 9, substituted “one percent” for “two percent” preceding “of the outstanding tax liability”.

Subdiv. (b)(3): Act No. 140, § 9 inserted “for income tax under subchapters 2 and 3 of chapter 151 of this title, two percent, and for all other taxes” following “shall be equal to” and made a minor punctuation change.

Subdiv. (b)(3): Act No. 140, § 11 substituted “one percent” for “two percent” following “chapter 151 of this title.”

Applicability of enactment.

1997, No. 156 (Adj. Sess.), § 59, provides that this section shall be effective with respect to interest and penalties assessed for taxable years beginning on and after January 1, 1999.

Applicability of 2002 amendment. 2001, No. 140 (Adj. Sess.), § 43(2) provides that § 9 of that act [which amended this section] “shall apply to interest and penalties related to taxable years beginning on or after January 1, 2002.”

2001, No. 140 (Adj. Sess.), § 43(2) provides that § 11 of that act [which amended this section by substituting “one percent” for “two percent” in subdiv. (b)(3)] “shall apply to interest and penalties related to taxable years 2005 and after.”

ANNOTATIONS

Erroneous refund.

There was no merit to a taxpayer’s argument that the Commissioner of Taxes could not assess a penalty on the taxpayer because its underpayment resulted from an erroneous refund. The plain meaning of the tax penalty provision authorized the imposition of a penalty on a taxpayer who had not paid his or her tax liability in full, imposing no restrictions on the application of the penalty for particular types of tax avoidance or underpayment. Restricting the Department of Taxes from assessing penalties in cases where complications resulted in an underpayment would defeat the purpose of the provision, which is to enable the Commissioner of Taxes to penalize taxpayers when they have not properly discharged their tax burden. TD Banknorth, N.A. v. Dep't of Taxes, 2008 VT 120, 185 Vt. 45, 967 A.2d 1148, 2008 Vt. LEXIS 132 (2008).

Penalties.

Because penalties were authorized where a taxpayer failed to pay any tax owed to the Vermont Department of Taxes, the Commissioner of Taxes acted well within the Commissioner’s discretion in imposing a five percent monthly penalty on a retailer. The retailer’s ignorance of the tax law was not a tenable defense, and there was nothing precluding the retailer from seeking a ruling from the Department as to the applicability of the bad debt statute. Citibank (South Dakota), N.A. v. Dep't of Taxes, 2016 VT 69, 202 Vt. 296, 149 A.3d 149, 2016 Vt. LEXIS 69 (2016).

§ 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.

HISTORY: Added 1997, No. 156 (Adj. Sess.), § 36, eff. April 29, 1998; amended 2007, No. 190 (Adj. Sess.), § 20, eff. June 6, 2008.

History

Amendments

—2007 (Adj. Sess.). Inserted “denial of refund” to the end of the section heading and inserted “or has claimed a refund in error” following “under this title”; substituted “this title” for “it” and inserted “or denial of refund” following “deficiency”.

Applicability of enactment.

1997, No. 156 (Adj. Sess.), § 59, provides that this section shall be effective with respect to interest and penalties assessed for taxable years beginning on and after January 1, 1999.

§ 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.

HISTORY: Added 1997, No. 156 (Adj. Sess.), § 38, eff. April 29, 1998.

§ 3205. Taxpayer Advocate.

  1. There is established within the Department of Taxes an Office of the Taxpayer Advocate.
  2. 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 regulations and interpretations by issuing bulletins and other written materials; and
    7. assist individual taxpayers in resolving disputes with the Department of Taxes.
  3. 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.
  4. [Repealed.]

HISTORY: 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.

History

Amendments

—2021. Subsec. (d): Repealed.

—2015 (Adj. Sess.). Subsec. (c): Substituted “on or before January 15” for “no later than January 15th”, and added the fifth sentence.

—2011 (Adj. Sess.). Subdiv. (b)(7): Added.

§ 3206. Recommendation for extraordinary relief.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

HISTORY: Added 2011, No. 143 (Adj. Sess.), § 8; amended 2019, No. 160 (Adj. Sess.), § 8, eff. Jan. 1, 2021.

History

Revision note

—2019. Subsec. (b): Substituted “property tax credit” for “property tax adjustment” in accordance with 2019, No. 51 , § 33.

Subsec. (b): Substituted “nonhomestead” for “nonresidential” in accordance with 2019, No. 46 , § 2, eff. Jan. 1, 2020.

Amendments

—2019 (Adj. Sess.). Subsec. (b): Substituted “renter credit claim” for “renter rebate claim”.

Effective date and applicability. 2019, No. 160 (Adj. Sess.), § 9 provides: “This act shall take effect on January 1, 2021 and apply to taxable years beginning on and after January 1, 2021 (claim filing years 2022 and after).”

§ 3207. Administrative attachment.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. Attachment under this section and other collection measures provided by law are cumulative.
  11. 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 .
  12. A determination under subdivision 5888(1) of this title will be reflected in the amounts collectible by the Commissioner.
  13. 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.
  14. 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.

HISTORY: Added 2015, No. 57 , § 42.

History

Effective date; proviso. 2015, No. 57 , § 98(4) provides: “Secs. 41-44 (administrative attachment and garnishment) [which amended 32 V.S.A. §§ 3101 and 3201 and enacted 32 V.S.A. §§ 3207 and 3208] shall take effect on July 1, 2015; provided, however, that prior to that date, the Commissioner of Taxes shall convene a meeting of interested stakeholders to discuss implementation issues; and provided however, that the Commissioner may not initiate any administrative attachments or garnishments under these sections until the administrative advocate services required by 32 V.S.A. §§ 3207 (n) and 3208(n) are available to taxpayers.”

§ 3208. Administrative garnishment.

  1. 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).
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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).
  11. Wage garnishment under this section and other collection measures provided by law are cumulative.
  12. A determination under subdivision 5888(1) of this title will be reflected in the amounts collectible by the Commissioner.
  13. 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.
  14. 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.

HISTORY: Added 2015, No. 57 , § 43; amended 2015, No. 134 (Adj. Sess.), § 2, eff. May 25, 2016.

History

Amendments

—2015 (Adj. Sess.). Subsec. (e): Added the final sentence.

Effective date; proviso. 2015, No. 57 , § 98(4) provides: “Secs. 41-44 (administrative attachment and garnishment) [which amended 32 V.S.A. §§ 3101 and 3201 and enacted 32 V.S.A. §§ 3207 and 3208] shall take effect on July 1, 2015; provided, however, that prior to that date, the Commissioner of Taxes shall convene a meeting of interested stakeholders to discuss implementation issues; and provided however, that the Commissioner may not initiate any administrative attachments or garnishments under these sections until the administrative advocate services required by 32 V.S.A. §§ 3207 (n) and 3208(n) are available to taxpayers.”

Subchapter 3. [Reserved]

Subchapter 4. [Reserved]

Subchapter 5. [Reserved]

Subchapter 6. Enforcement

§ 3260. Bulk sales.

  1. Whenever a person (transferor) required to collect or withhold a trust tax pursuant to chapter 151, 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, 225, or 233 and whether or not the transferee has knowledge that such taxes are owed, and whether any taxes are in fact owed.
  2. 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.
  3. 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, 225, or 233.

HISTORY: Added 1991, No. 186 (Adj. Sess.), § 9; amended 2003, No. 70 (Adj. Sess.), § 34, eff. March 1, 2004.

History

Amendments

—2003 (Adj. Sess.). Subsec. (a): Substituted “(transferor)” for “ ‘transferor’ ”; inserted “long-term lease” preceding “or assignment”; and substituted “(transfer)” for “ ‘transfer’ ” and “(transferee)” for “ ‘transferee’ ”.

§ 3261. [Reserved for future use]

§ 3262. Lien fees; service of process costs; electronic filing of liens.

  1. 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.
  2. 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.

HISTORY: 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.

History

Amendments

—2013. Added “electronic filing of liens” to the section heading and the subsec. (a) designation and added subsec. (b).

—2007 (Adj. Sess.). Inserted “service of process costs” in the section heading, “title” following “502 of this” and “and any related service of process costs awarded to the department and” following “1671(c) of this title” in the first sentence, and inserted “and costs” preceding “collected under this section” and “and the costs of service” at the end of the second sentence.

—1997. Inserted “specified in subdivision 1671(a)(6) or subsection 1671(c) of this title” following “fees” in the first sentence and added the second sentence.

Subchapter 7. Collections

History

Transition. 2015, No. 57 , § 46, effective June 11, 2015, provides: “By July 1, 2016, the Department of Taxes shall adopt rules necessary to implement the creation of the Collections Unit under 32 V.S.A. chapter 103, subchapter 7. The rules shall include provisions for entering into referral agreements with referring agencies, branches, and subdivisions, and for exercising the enforcement powers provided under this subchapter.”

§ 3301. Collections Unit.

  1. 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.
  2. 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.

HISTORY: Added 2015, No. 57 , § 45, eff. July 1, 2016.

§ 3302. Debt referral.

  1. 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.
  2. 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.

HISTORY: 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.

HISTORY: Added 2015, No. 57 , § 45, eff. July 1, 2016.

Chapter 105. Vermont Employment Growth Incentive Program

History

VEGI; Repeal of authority to award incentives. 2015, No. 157 (Adj. Sess.), § H.12, effective January 1, 2017 provides: “Notwithstanding any provision of law to the contrary, the Vermont Economic Progress Council shall not accept or approve an application for a Vermont Employment Growth Incentive under 32 V.S.A. chapter 105, subchapter 2 on or after January 1, 2021.”

Subchapter 1. Vermont Economic Progress Council

§ 3325. Vermont Economic Progress Council.

  1. 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; and
    2. tax increment financing districts pursuant to 24 V.S.A. chapter 53, subchapter 5 and section 5404a of this title.
  2. Membership.
    1. The Council shall have 11 voting members:
      1. 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;
      2. one member of the Vermont House of Representatives appointed by the Speaker of the House; and
      3. one member of the Vermont Senate appointed by the Senate Committee on Committees.
      1. 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. (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.
      2. A regional member shall be a nonvoting member and shall serve during consideration by the Council of an application from his or her region.
  3. 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.
  4. 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.
  5. 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:
      1. 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
      2. administrative staff.
  6. 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.
  7. Decisions not subject to review.   A decision of the Council to approve or deny an application under subchapter 2 of this chapter, or 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, 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.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.

History

Revision note

—2020. In subdiv. (d)(1), substituted “ 2 V.S.A. § 23 ” for “ 2 V.S.A. § 406 ” in accordance with 2019, No. 144 (Adj. Sess.), § 12(2).

§ 3326. Cost-benefit model.

  1. 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.
  2. The Council shall not modify the cost-benefit model without the prior approval of the Joint Fiscal Committee.

HISTORY: 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.

  1. 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.
  2. 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:
      1. 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;
      2. an enhanced incentive for an environmental technology business pursuant to section 3335 of this title; and
      3. an enhanced incentive for a business that participates in a State workforce training program pursuant to section 3336 of this title.
  3. Eligible applicant.   Only a business may apply for an incentive pursuant to this subchapter.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.

History

References in text.

Section 3336 of this title, referred to in subdiv. (b)(2)(C), was repealed by 2019, No. 80 , § 16.

§ 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:
    1. The position is filled by a non-owner employee who regularly works at least 35 hours each week.
    2. The business provides compensation for the position that equals or exceeds the wage threshold.
    3. The business provides for the position at least three of the following:
      1. health care benefits with 50 percent or more of the premium paid by the business;
      2. dental assistance;
      3. paid vacation;
      4. paid holidays;
      5. child care;
      6. other extraordinary employee benefits;
      7. retirement benefits; and
      8. other paid time off, excluding paid sick days.
    4. The position is not an existing position that the business transfers from another facility within the State.
    5. 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:
    1. 60 percent above the State minimum wage at the time of application; or
    2. 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.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.

§ 3332. Application; approval criteria.

  1. 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:
      1. specify a payroll performance requirement;
      2. specify a jobs performance requirement or a capital investment performance requirement, or both; and
      3. provide any other information the Council requires to evaluate the application under this subchapter.
  2. 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:
      1. 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;
      2. the business complies with applicable State laws and regulations; and
      3. the proposed economic activity would conform to applicable town and regional plans and with applicable State laws and regulations.
    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:
      1. would not occur; or
      2. would occur in a significantly different manner that is significantly less desirable to the State.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2017, No. 69 , § A.1, eff. June 28, 2017.

History

Amendments

—2017. Subdiv. (b)(1): Substituted “activity would generate to the State would exceed” for “activity generates to the State exceeds” following “proposed”.

Subdiv. (b)(3): Amended generally.

Effective date of 2017 amendment. 2017, No. 69 , § N.1(b) provides that the amendments to this section shall take effect on the date of enactment of the fiscal year 2018 annual budget bill, which was June 28, 2017.

§ 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, an enhanced incentive for an environmental technology business under section 3335 of this title, or an enhanced incentive for workforce training under section 3336 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:
    1. divide the value of the incentive by five; and
    2. 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.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.

History

References in text.

Section 3336 of this title, referred to in this section, was repealed by 2019, No. 80 , § 16.

§ 3334. Enhanced incentive for a business in a qualifying labor market area.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2017, No. 69 , § A.1, eff. June 28, 2017.

History

Amendments

—2017. Subsec. (f): Added.

Effective date of 2017 amendment. 2017, No. 69 , § N.1(b) provides that the amendments to this section shall take effect on the date of enactment of the fiscal year 2018 annual budget bill, which was June 28, 2017.

§ 3335. Enhanced incentive for environmental technology business.

  1. 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:
      1. waste management, including waste collection, treatment, disposal, reduction, recycling, and remediation;
      2. 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;
      3. energy efficiency or conservation;
      4. clean energy, including solar, wind, wave, hydro, geothermal, hydrogen, fuel cells, waste-to-energy, or biomass.
  2. 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:
      1. determine the background growth rate in payroll for the applicable business sector in the award year;
      2. multiply the business’s full-time payroll for the award year by 20 percent of the background growth rate; and
      3. subtract the product from the payroll performance requirement for the award year.
  3. 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.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2017, No. 69 , § A.1, eff. June 28, 2017.

History

Amendments

—2017. Subsec. (c): Added.

Effective date of 2017 amendment. 2017, No. 69 , § N.1(b) provides that the amendments to this section shall take effect on the date of enactment of the fiscal year 2018 annual budget bill, which was June 28, 2017.

§ 3336. Repealed. 2019, No. 80, § 16.

History

Former § 3336. Former § 3336, relating to enhanced incentive for workforce training, was derived from 2015, No. 157 (Adj. Sess.), § H.1.

§ 3337. Earning an incentive.

  1. 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:
      1. maintains or exceeds its base payroll and base employment;
      2. meets or exceeds the payroll performance requirement specified for the award year; and
      3. 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:
      1. maintains or exceeds its base payroll and base employment;
      2. maintains or exceeds the payroll performance requirement specified for the award year; and
      3. 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.
  2. 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.
  3. 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.
  4. 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:
      1. a business did not earn the incentive for the award year due to facts or circumstances beyond its control; and
      2. 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:
      1. for award year one, by two years, reviewed annually; or
      2. 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.
  5. 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.
  6. 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.
  7. 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.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.

§ 3338. Claiming an incentive; annual filing with Department of Taxes.

  1. 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.
  2. 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:
      1. 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
      2. the business complies with applicable State laws and regulations.
  3. 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.
  4. 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.
  5. The Department shall not pay interest on any amounts it holds or pays for an incentive or installment payment pursuant to this subchapter.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2017, No. 69 , § A.1, eff. June 28, 2017.

History

Amendments

—2017. Subsec. (b): Added the subdiv. (1) designation and inserted “and” following “eligible” at the end of the subdiv. and added subdiv. (b)(2).

Effective date of 2017 amendment. 2017, No. 69 , § N.1(b) provides that the amendments to this section shall take effect on the date of enactment of the fiscal year 2018 annual budget bill, which was June 28, 2017.

§ 3339. Recapture; reduction; repayment.

  1. Recapture.
    1. The Department of Taxes may recapture the value of one or more installment payments a business has claimed, with interest, if:
      1. the business fails to file a claim as required in section 3338 of this title;
      2. during the utilization period, the business experiences:
        1. a 90 percent or greater reduction from base employment; or
        2. 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
      3. the Department determines that during the application or claims process the business knowingly made a false attestation that the business:
        1. 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
        2. was in compliance with State laws and regulations.
    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:
      1. under subdivision (1)(A) of this subsection, no later than three years from the last day of the utilization period; and
      2. under subdivision (1)(B) of this subsection, no 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.
  2. 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:
      1. 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
      2. 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:
      1. the business becomes ineligible to claim any additional installment payments for the award period; and
      2. 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.
  3. 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.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017; amended 2017, No. 69 , § A.1, eff. June 28, 2017.

History

Amendments

—2017. Subdiv. (a)(1)(A): Deleted “or” from the end of the subdivision.

Subdiv. (a)(1)(B)(ii): Inserted “; or” following “requirements”.

Subdiv. (a)(1)(C): Added.

Effective date of 2017 amendment. 2017, No. 69 , § N.1(b) provides that the amendments to this section shall take effect on the date of enactment of the fiscal year 2018 annual budget bill, which was June 28, 2017.

§ 3340. Reporting.

  1. 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.
  2. 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:
      1. the date and amount of authorization;
      2. the calendar year or years in which the authorization is expected to be exercised;
      3. whether the authorization is active; and
      4. the date the authorization will expire; and
    3. the following aggregate information:
      1. the number of claims and incentive payments made in the current and prior claim years;
      2. the number of qualifying jobs; and
      3. the amount of new payroll and capital investment.
  3. The Council and the Department shall present data and information in the joint report in a searchable format.
  4. 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.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.

§ 3341. Confidentiality of proprietary business information.

  1. 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.
  2. 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.
  3. 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.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.

§ 3342. Annual program cap.

  1. 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.
  2. 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.
  3. 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.
  4. 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.

HISTORY: Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.

Part 2. Property Taxation

History

References in text.

Pursuant to § 3007 of this title, references to Director in Part 2 of this subtitle mean the Director of the Division of Property Valuation and Review.

Revision note—

Reference to polls was deleted from Part 2 heading pursuant to poll tax repeal. See poll tax repeal note set out below.

Repeal of poll taxes. Authority to levy and collect poll taxes under Part 2 of Subtitle 2 was repealed by 1977, No. 118 (Adj. Sess.), § 1(a), eff. Dec. 31, 1981.

References to “poll taxes” and “polls” are to be deleted wherever they appear in Vermont statutes effective July 1, 1982, pursuant to 1977, No. 118 (Adj. Sess.), § 1(b).

Chapter 121. General Provisions

CROSS REFERENCES

State Payment in Lieu of Property Taxes, see § 3701 of this title.

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 thereto, and shall issue such bulletins as in his or her judgment will aid in enforcing the law. When a board of listers or members thereof so request, the Director shall furnish such information as he or she shall deem pertinent.

HISTORY: Amended 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 632. P.L. § 577. G.L. § 671. 1910, No. 38 , § 3.

Amendments

—1977. Substituted “director” for “commissioner”.

§ 3402. Director to collect data.

The Director shall collect such data and information touching methods of taxation and exemption therefrom and the work of listers in the various towns as he or she shall deem advisable.

HISTORY: Amended 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 633. P.L. § 578. G.L. § 672. 1910, No. 38 , § 4.

Amendments

—1977. Substituted “director” for “commissioner”.

ANNOTATIONS

Cited.

Cited in Knollwood Building Condominiums v. Town of Rutland, 166 Vt. 529, 699 A.2d 31, 1997 Vt. LEXIS 99 (1997).

§ 3403. Repealed. 1995, No. 178 (Adj. Sess.), § 426, eff. May 22, 1996.

History

Former § 3403. Former § 3403, relating to biennial report to General Assembly. was derived from V.S. 1947, § 771; P.L. § 725; 1933, No. 156 , § 3; 1927, No. 20 , § 1; G.L. § 831; 1912, No. 117 , § 1; 1910, No. 38 , § 25; P.S. § 604; 1906, No. 214 , § 16; V.S. § 466; 1888, No. 5 , § 5; 1884, No. 2 , § 7 and amended by 1977, No. 105 , § 14(a).

§ 3404. CAPTAP fees.

  1. The Director is authorized to charge fees for data processing and support services rendered to municipalities relative to the Computer Assisted Property Tax Administration Program (CAPTAP) as follows:
    1. when the Department performs routine data processing for a municipality, $1.75 per parcel;
    2. when the Department performs data processing services in connection with a town reappraisal, $2.00 per parcel; and
    3. when the Department performs support, training, or consulting services for municipalities using CAPTAP at their own sites: $350.00 per year for municipalities with fewer than 500 parcels; $450.00 per year for municipalities with 500 to 1,000 parcels; $550.00 per year for municipalities with 1,001 to 2,000 parcels; and $650.00 per year for municipalities with more than 2,000 parcels.
  2. Pursuant to subdivision 603(2) of this title, these fees may be adjusted.
  3. The fees collected in subsection (a) of this section shall be credited to the CAPTAP fees special fund established and managed pursuant to chapter 7, subchapter 5 of this title, and shall be available to offset the costs of providing those services.

HISTORY: Added 1995, No. 186 (Adj. Sess.), § 1, eff. May 22, 1996; amended 1997, No. 59 , § 10, eff. June 30, 1997.

History

Amendments

—1997. Added new subsec. (b) and redesignated former subsec. (b) as present subsec. (c).

Prior law.

Former § 3404 relating to form books prepared by Commissioner was derived from V.S. 1947, § 636: P.L. § 581: G.L. § 675: 1910, No. 38 , § 13, amended by 1957, No. 219 , § 2 and repealed by 1975, No. 118 , § 91.

§§ 3405-3408. Repealed. 1975, No. 118, § 91, eff. July 1, 1975.

History

Former §§ 3405-3408. Former § 3405, relating to forms required, was derived from V.S. 1947, § 637: P.L. § 582: G.L. § 676: 1910, No. 38 , § 15: P.S. §§ 297, 603: R. 1906, § 266: V.S. §§ 225, 465: 1888, No. 5 , § 4: 1884, No. 2 , § 6: R.L. § 162: 1870, No. 1 , § 1: 1868, No. 3 , § 1: G.S. 8, § 36: G.S. 83, § 37: 1855, No. 43 , § 34: 1853, No. 36 , § 6: 1841, No. 16 , § 21: 1827, No. 16 .

Former § 3406, relating to distribution of law by Commissioner, was derived from V.S. 1947, § 698: P.L. § 649: G.L. § 749: 1910, No. 38 , § 17: P.S. § 541: V.S. § 403: 1882, No. 2 , § 4: R.L. § 334: 1880, No. 78 , § 18 and amended by 1957, No. 219 , § 2.

Former § 3407, relating to assistance for listers, was derived from 1964, No. 30 (Sp. Sess.), § 1.

Former § 3408, relating to contract reappraisals, was derived from 1965, No. 178 , § 2.

§ 3409. Repealed. 2015, No. 57, § 98, eff. June 11, 2015.

History

Former § 3409. Former § 3409, relating to preparation of property maps, was derived from 1967, No. 146 , § 3 and amended by 1977, No. 105 , § 14(a); 1987, No. 243 (Adj. Sess.), § 71; 2009, No. 1 (Sp. Sess.), § H.21; and 2011, No. 143 (Adj. Sess.), § 34.

§ 3410. Maintenance of duplicate property records.

  1. To supplement and ensure the safekeeping of town records, the Director shall establish and maintain a central file of municipal grand lists.  These grand lists shall be maintained at the office of the Division for a period of two years.
  2. The town clerks of each town and city shall provide the Director with one copy of the grand list at a reasonable charge.
  3. At a reasonable charge to be established by the Director, the Director shall supply to any person or agency a copy of any document contained in the file established under this section.

HISTORY: 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.

History

Amendments

—1987 (Adj. Sess.) Section amended generally.

—1977. Substituted “director” for “commissioner”.

§ 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, to prepare and provide tax maps for all municipalities not having the same;
  8. from time to time, to 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.

HISTORY: 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.

History

Revision note—

In subdiv. (11), deleted “but not limited to” following “including” in accordance with 2013, No. 5 , § 4.

Amendments

—1999. Subdiv. (9): Amended generally.

—1987 (Adj. Sess.) Rewrote subdiv. (8) and added subdivs. (9)-(11).

—1985. Subdiv. (1): Substituted “commissioner of the department of taxes” for “secretary of administration” following “approval of the”.

Transfer of records, appeals, and rules. 1977, No. 105 , § 16 provided:

“(a) All records, papers, documents, rules, policies and procedures in effect in the department of taxes on June 30, 1977 concerning the administration of the property tax, tax mapping and the property tax division are transferred to the division of property valuation and review.

“(b) All cases of appeal pending before the tax commissioner or to which the commission is a party on June 30, 1977 concerning the administration of the property tax or the equalized grand list shall continue before the commissioner or he shall continue as a party to those cases, and for that purpose, the law in effect on June 30, 1977 is continued in effect.”

ANNOTATIONS

Construction.

Statutory authority of Division of Property Valuation and Review was confined to appraising fair market value of property in question; it had no statutory authority, and therefore lacked subject matter jurisdiction, to determine tax-exempt status of property. Subud of Woodstock, Inc. v. Town of Barnard, 169 Vt. 582, 732 A.2d 749, 1999 Vt. LEXIS 95 (1999) (mem.).

Cited.

Cited in Knollwood Building Condominiums v. Town of Rutland, 166 Vt. 529, 699 A.2d 31, 1997 Vt. LEXIS 99 (1997).

§ 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.

HISTORY: 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.

History

Amendments

—2013 (Adj. Sess.). Added the seventh sentence.

—2005. Added “and the value of all exempt property on each grand list as required by subsection 4152(a) of this title” in the second sentence, and inserted “or she” following “he” in the fourth sentence.

—1997. Substituted “January 15” for “January 12” in the first sentence.

—1995 (Adj. Sess.) Added the second sentence, and inserted “also” preceding “include” and substituted “an” for “a documented” thereafter in the third sentence.

ANNOTATIONS

Cited.

Cited in Knollwood Building Condominiums v. Town of Rutland, 166 Vt. 529, 699 A.2d 31, 1997 Vt. LEXIS 99 (1997).

Subchapter 2. Duties of Listers

§ 3431. Lister’s oath.

  1. 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:

    Click to view

“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.

History

Source.

1957, No. 237 , § 1(I). V.S. 1947, § 748. P.L. § 703. G.L. § 809. P.S. § 577. V.S. § 438. 1882, No. 2 , § 29. R.L. § 329. 1880, No. 78 , § 13.

CROSS REFERENCES

Punishment for perjury, see 13 V.S.A. chapter 65.

ANNOTATIONS

Administration of oath.

Listers may take their preliminary oath before town clerk, oath being returnable to town clerk’s office within meaning of this section. Potter v. Lewis, 73 Vt. 367, 51 A. 5, 1901 Vt. LEXIS 195 (1901).

Construction with other laws.

Act of 1880 [this section], passed to “equalize taxation,” formulated only one oath for listers; but as this act was part of an established system, it is to be read in connection with existing statutes in pari materia, and as these required certain specified oaths, it is necessary for listers to take both oaths; the one being preliminary and a qualification for office; and the other a certification of completed list. Walker v. City of Burlington, 56 Vt. 131, 1883 Vt. LEXIS 90 (1883).

Form of oath.

If listers in taking oath prescribed by section add immediately before words “So help me God” the words “to the best of our judgement,” that addition will render oath null, and subsequent grand list invalid. Lynde v. Town of Dummerston, 61 Vt. 48, 17 A. 45, 1888 Vt. LEXIS 109 (1888).

Liability of listers.

Towns are required by statute to elect annually three, four, or five listers, who constitute a board, a majority of which is essential to legal action; and since the acts of one acting alone would be void, an indictment charging lister with perjury in that he had violated his official oath, is defective without allegation of election of requisite number of listers and that they qualified and acted as such. State v. Peters, 57 Vt. 86, 1884 Vt. LEXIS 2 (1884).

While most listers’ duties partake so much of the nature of judicial proceedings that their judgment, exercised in good faith, is conclusive, yet as to that portion of setting up taxpayers’ lists as relates to the persons to whom land is set and to the number of acres, the listers are liable to party injured for the consequences of mistakes, oversights, or inaccuracies, if they fail to act in good faith or with common care, skill or prudence. Wilson v. Marsh, 34 Vt. 352, 1861 Vt. LEXIS 66 (1861).

Listers are liable for their omission of express and obvious matter of fact duties, and for all other injurious misconduct in their office, even in matters of discretion, when it can be shown they acted mala fide. Stearns v. Miller, 25 Vt. 20, 1852 Vt. LEXIS 107 (1852).

Necessity of oath.

It is not necessary that a lister should take the constitutional oath. Rowell v. Horton, 58 Vt. 1, 3 A. 906, 1886 Vt. LEXIS 78 (1886).

Section is mandatory and must be substantially complied with, to give validity to the list; and the oath required by § 4151 of this title, to be made to the list on completion thereof, is not such compliance. Ayers v. Moulton, 51 Vt. 115, 1878 Vt. LEXIS 134 (1878).

Recording oath.

Grand list was legal, though oath of listers had not been recorded; and though it did not appear that selectmen, who assessed and certified tax, had been sworn. Day v. Peasley, 54 Vt. 310, 1881 Vt. LEXIS 113 (1881).

Subscribing oath.

Legislature has power to pass retrospective act legalizing grand list which was irregular or invalid because listers had only taken, but had not subscribed, the preliminary oath required by section; and such grand list was admissible as evidence in action to recover taxes assessed on that grand list, both before and after its legalization. Smith v. Hard, 59 Vt. 13, 8 A. 317, 1886 Vt. LEXIS 20 (1886).

Cited.

Cited in Royal Parke Corp. v. Town of Essex, 145 Vt. 376, 488 A.2d 766, 1985 Vt. LEXIS 301 (1985).

§ 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.

HISTORY: Amended 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 634. P.L. § 579. G.L. § 673. 1910, No. 38 , § 5.

Amendments

—1977. Substituted “director” for “commissioner”.

§ 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.

History

Source.

V.S. 1947, § 749. 1947, No. 13 , § 2. P.L. § 704. G.L. § 810. 1917, No. 254 , § 778. 1915, No. 34 , § 7. 1915, No. 40 , § 1. P.S. § 578. V.S. § 439. 1882, No. 2 , § 30. R.L. § 330. 1880, No. 78 , § 14.

§ 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.

HISTORY: Amended 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 631. P.L. § 576. G.L. § 670. 1915, No. 38 . 1910, No. 38 , § 2.

Amendments

—1977. Substituted “director” for “commissioner”.

§ 3435. Listers to attend meetings for instructions.

Except as herein otherwise provided, 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, he or she shall forthwith notify the Director, stating the cause of such inability. In his or her discretion, the Director may summon such lister to attend such other meeting as he or she shall designate. Listers who attend such meetings shall receive therefor from their respective towns the per diem thereby voted for listers or $10.00 per day, whichever is the greater, and their necessary expenses.

HISTORY: Amended 1959, No. 16 , eff. March 5, 1959; 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 635. P.L. § 580. G.L. § 674. 1910, No. 38 , § 6.

Amendments

—1977. Substituted “director” for “commissioner”.

—1959. Substituted words “at least one lister or more if the town so votes shall attend” for “listers shall attend” and provided $ 10 as minimum per diem.

§ 3436. Assessment education.

  1. 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 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 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.
  2. 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.
  3. Designation obtained under subsection (b) of this section may be renewed for three-year periods upon completion of requirements as determined by the director.
  4. 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.

HISTORY: 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.

History

Amendments

—2015. Subsec. (a): Amended generally.

—2013 (Adj. Sess.). Subsec. (b): Amended generally.

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.

History

Source.

V.S. 1947, § 767. P.L. § 721. G.L. § 827. P.S. § 599. V.S. § 461. 1884, No. 2 , § 1.

§ 3462. Repealed. 2001, No. 63, § 283(c).

History

Former § 3462. Former § 3462, relating to reports by the town clerk and appraisers, was derived from V.S. 1947, § 768; P.L. § 722; G.L. § 828; 1915, No. 43 , § 1; 1912, No. 42 , § 13; 1910, No. 38 , § 23; P.S. § 600; V.S. § 462; 1888, No. 5 , § 1; 1884, No. 2 , § 2 and amended by 1977, No. 105 , § 14(a).

§ 3463. Repealed. 2009, No. 33, § 83(m)(7).

History

Former § 3463. Former § 3463, relating to report by county treasurers of the grand list, the rate per dollar, and the amount of county taxes assessed in the county for the previous year, was derived from V.S. 1947, § 769; P.L. § 723; G.L. § 829; 1910; No. 38, § 24; P.S. § 601; V.S. § 463; 1888, No. 5 , § 2; 1884, No. 2 , § 3 and amended by 1977, No. 105 , § 14(a).

§ 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.

History

Source.

V.S. 1947, § 770. 1947, No. 202 , § 776. P.L. § 724. G.L. § 830. P.S. § 602. V.S. § 464. 1888, No. 5 , § 3.

§ 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.

HISTORY: Added 1985, No. 242 (Adj. Sess.), § 312; amended 2003, No. 158 (Adj. Sess.), § 3.

History

Amendments

—2003 (Adj. Sess.). Section amended generally.

Expiration of 2003 (Adj. Sess.) amendments. 2003, No. 158 (Adj. Sess.) § 6, as amended by 2005, No. 71 , § 54c, provides that the amendments to this section, by Sec. 3 of that act, shall expire on June 30, 2006 and, upon that date, the content of this section shall revert to the content that existed before the effective date of Act 158.

Extension of sunset. 2003, No. 158 (Adj. Sess.) § 6, as amended by 2005, No. 71 , § 54c and 2005, No. 162 (Adj. Sess.), § 4a, provides: “This act shall expire on June 30, 2007, and sections of the Vermont Statutes Annotated which are amended by this act shall revert to the language in effect prior to the effective date of this act.”

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. “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 State Board 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. (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 State Board 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.
    2. 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:
      1. 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;
      2. 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;
      3. 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
      4. 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.
    3. 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.
      1. 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: (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:
        1. an appraisal model identified and published by the Director employing appraisal industry standards and inputs;
        2. a discount rate determined and published annually by the Director;
        3. 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;
        4. 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
        5. 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.
      2. 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 .
    4. 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.
  1. “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.

HISTORY: 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.

History

Source.

1957, No. 237 , § 1(II). V.S. 1947, § 748. P.L. § 703. G.L. § 809. P.S. § 577. V.S. § 438. 1882, No. 2 , § 29. R.L. § 329. 1880, No. 78 , § 13.

References in text.

30 V.S.A. § 219a , referred to in subdivs. (1)(D)(i)(IV) and (1)(D)(i)(V), was repealed by 2013, No. 99 (Adj. Sess.), § 10(c), effective January 1, 2017.

Revision note

—2013. In subdiv. (1), deleted “but not limited to” following “including” in accordance with 2013, No. 5 , § 4.

Amendments

—2021. Subdiv. (1)(E): Added.

—2017 (Adj. Sess.). Subdiv. (1)(A): Substituted “that combine to give property” for “which combine to give property” in the second sentence.

Subdiv. (1)(C): Substituted “House Committee on Ways and Means” for “General Assembly” in the second sentence.

—2013 (Adj. Sess.). Subdiv. (1)(A): Inserted “except for owner-occupied housing identified in subdivision (C) of this subdivision (1),” following “all other property,”, substituted “that the property” for “which the property” following “property is the price”, and deleted “a consideration of a decrease in value in nonrental residential property due to a housing subsidy covenant as defined in 27 V.S.A. § 610 , or” following “Those elements shall include”.

Subdiv. (1)(C): Added.

Subdivs. (1)(D)(i)-(1)(D)(ii): Added.

—2007. Subdiv. (1)(A): Amended generally.

Subdiv. (1)(B): Substituted “which shall be” for “as” preceding “provided” and inserted “in a format acceptable to the commissioner” following “owner” and “such as a certified public accounting or firm or quasi-public funding agency” following “party”.

—2005. Subdiv. (1): Act No. 38 substituted “subdivision 3752(12)” for “section 3752(12)” in the first sentence and added the last sentence.

Act No. 75 substituted “subdivision 3752(12)” for “section 3752(12)” in the first sentence, inserted “in nonrental residential property” following “decrease in value” in the third sentence, added the fourth sentence of the first paragraph, and added the second paragraph.

—1997. Subdiv. (1): Inserted “a decrease in value due to a housing subsidy covenant as defined in section 610 of Title 27, or” following “consideration of” in the third sentence.

—1995 (Adj. Sess.) Subdiv. (1): Inserted “with respect to property enrolled in a use value appraisal program, the use value appraisal as defined in section 3752(12) of this title, multiplied by the common level of appraisal, and with respect to all other property” in the first sentence.

—1977. Subdiv. (1): Redefined appraisal value.

Subdiv. (2): Substituted “100” for “50” percent.

—1973. Designated definitions as subdivs. (1) and (2) and amended (1) generally.

—1965. Redefined “listed value” as fifty per cent of appraisal value and deleted reference to board of listers and town clerk. Prior to the amendment the definition read as follows:

“ ‘Listed value’ shall mean that proportionate part of the appraisal value agreed upon by the board of listers, and recorded with the town clerk. Each town may determine the ratio of listed value to appraisal value to be used in the town, but the ratio shall be the same for both real and personal property.”

—1959. Added provision relating to determination of ratio by town and requiring ratio to be the same for real and personal property.

Effective date of amendments—

2005, No. 38 amendment. 2005, No. 38 , § 22(1), provided: “Sec. 1 [which amended this section], (clarification of ‘fair market value’ for appraisal) shall take effect upon passage and shall apply to grand lists for April 1, 2006, and after.”

Effective date of amendments—

2007 amendment. 2007, No. 81 , § 26(4), provided: “Sec. 10 of this act [which amended subdiv. (1) of this section], (grand list valuation of affordable rental housing) shall apply to grand lists of April 1, 2007, and after.”

Effective date and applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70(8) provides that Secs. 26-29 (solar plant exemptions and valuation) [which added subdiv. (1)(D) of this section, 32 V.S.A. §§ 3802(17) , 3845, and 8701] and 32 (valuation of natural gas and petroleum infrastructure) [which amended 32 V.S.A. § 3621 ] shall take effect on January 1, 2015 and apply to property appearing on grand lists lodged in 2015 and after.

2013, No. 174 (Adj. Sess.), § 70(16) provides that Secs. 54 (shared equity housing) [which amended subdiv. (1)(A) and added (1)(C) of this section], 55 (health and recreation property) which amended 32 V.S.A. § 3832(7) ], 56 (town voted exemption) [which enacted 32 V.S.A. § 3839 ], and 57 (education property tax exemption) [which amended 32 V.S.A. 5401(10)(K)] shall take effect on January 1, 2015 and apply to property appearing on grand lists lodged in 2015 and after.

Report repeal delayed. 2017, No. 154 (Adj. Sess.), § 6, effective May 21, 2018, provides: “The reports set forth in this section [subdiv. (1)(C)] shall not be subject to review under the provisions of 2 V.S.A. § 20(d) (expiration of required reports) until July 1, 2022.”

ANNOTATIONS

Adjoining property.

In taxpayer’s proceeding for lower tax appraisal of land, it was erroneous to refuse to allow taxpayer to testify to appraisal placed on his adjoining property in the next town as part of the basis for his opinion of the fair market value of the property at issue. Ames v. Town of Danby, 136 Vt. 78, 385 A.2d 1075, 1978 Vt. LEXIS 691 (1978).

Appraised valuation.

Record lacked the evidentiary support necessary to sustain a State appraiser’s market-value determination with respect to the purported effect of a housing-subsidy for purposes of a taxpayer’s property tax, as the appraiser had arbitrarily reduced the assessed value without evidence from the taxpayer to establish the covenant’s purported negative effect on fair market value. Franks v. Town of Essex, 2013 VT 84, 194 Vt. 595, 87 A.3d 418, 2013 Vt. LEXIS 87 (2013).

State appraiser did not abuse his discretion in finding that the housing-subsidy covenant on a taxpayer’s property resulted in no decrease in fair market value, as the valuation was reasonably drawn from the evidence, and the State appraiser correctly understood the issue presented. Franks v. Town of Essex, 2013 VT 84, 194 Vt. 595, 87 A.3d 418, 2013 Vt. LEXIS 87 (2013).

On appeal of valuation of lakefront property, town met its burden of production through evidence of per-foot valuation based on State schedules, and modified by town, which were based on sales and thereby reflected appraised valuation within meaning of subdivision (1) of this section. Sondergeld v. Town of Hubbardton, 150 Vt. 565, 556 A.2d 64, 1988 Vt. LEXIS 231 (1988).

Burden of proof.

Presumptively, upon a showing that an appraisal of property conforms to fair market value, the listing is valid, and the burden is upon the taxpayer to demonstrate inequality in the manner in which the ratio of fair market value to listed value applied to its property as compared to other taxable property in the town. Royal Parke Corp. v. Town of Essex, 145 Vt. 376, 488 A.2d 766, 1985 Vt. LEXIS 301 (1985).

Formula of appraisal used by town did take into account individual characteristics of land in the grade adjustment, but since no evidence was offered at trial as to how exactly a size adjustment was applied, town did not meet its burden of producing evidence of substantial compliance with relevant constitutional and statutory provisions, and trial court’s finding of fair market value apparently based on such formula must be reversed. Welch v. Town of Ludlow, 136 Vt. 83, 385 A.2d 1105, 1978 Vt. LEXIS 692 (1978).

Although town failed to validate appraisal formula, taxpayer’s property would not be set in grand list at its value in preceding year, where independent evidence, in addition to evidence based upon the formula, introduced by town, consisting of testimony as to fair market value and listed value of comparable property, was sufficient to meet town’s burden of producing evidence to justify appraisal as to fair market value and uniformity. Welch v. Town of Ludlow, 136 Vt. 83, 385 A.2d 1105, 1978 Vt. LEXIS 692 (1978).

Comparable sales.

In the assessment of real property, evidence of comparable sales are admissible although comparable properties are rarely, if ever, identical properties. Absent abuse of discretion, the degree of comparability goes to the weight of the evidence and is a matter for the trier of fact. Scott Construction, Inc. v. City of Newport Board of Civil Authority, 165 Vt. 232, 683 A.2d 382, 1996 Vt. LEXIS 70 (1996).

Condominiums.

Ownership interest in a condominium owners’ association positively influences the price a buyer is willing to pay for a unit in the condominium complex, therefore, the value of that interest may properly be taken into account when determining the real property’s fair market value. Barrett v. Town of Warren, 2005 VT 107, 179 Vt. 134, 892 A.2d 152, 2005 Vt. LEXIS 249 (2005).

Development potential.

The mere existence of uncertainty in the regulatory process does not bar consideration of development potential in the assessment of real property based on its fair market value according to its highest and best use. By nature, the highest-and-best-use concept depends on market and legal assumptions. Scott Construction, Inc. v. City of Newport Board of Civil Authority, 165 Vt. 232, 683 A.2d 382, 1996 Vt. LEXIS 70 (1996).

Effect of amendment.

Where a 1977 judgment order between a town and municipal utility protected the town from a drop in the tax rate as a result of reappraisal only if the reduction in the tax rate was the result of a reappraisal required by an act of the Legislature or by a court order, and the town made a general reappraisal in response to the 1977 amendment to subdivision (2) of this section, defining listed value which required one hundred percent valuation, causing a drop in the tax rate, the amendment did not require a general reappraisal, since the town could have changed its tax rate instead of undertaking the general reappraisal, and the town was bound by the 1977 judgment order which set an appraisal value on the property of the municipal utility and that property should have been taxed at the lower tax rates for 1979 and 1980. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 140 Vt. 615, 442 A.2d 1288, 1982 Vt. LEXIS 461 (1982).

Fair market value.

Because the town’s market analysis report was comprehensive and contained a large number of recent sales of very similar properties in the same market as the taxpayer’s property, and the taxpayer did not object to the report or challenge the comparability of the sales or the adjustments that the appraiser made to those sales to derive a value for his property, the hearing officer did not abuse his discretion by affording greater weight to this independent market data than the sale price of the taxpayer’s property in determining fair market value. Martinez v. Town of Hartford, 2020 VT 70, 213 Vt. 66, 239 A.3d 263, 2020 Vt. LEXIS 80 (2020).

In determining the fair market value of the taxpayer’s property, the hearing officer acted consistently with the law in considering alternative evidence of the property’s fair market value notwithstanding finding that the recent sale of the property was arms-length. Martinez v. Town of Hartford, 2020 VT 70, 213 Vt. 66, 239 A.3d 263, 2020 Vt. LEXIS 80 (2020).

Supreme Court of Vermont holds that a so-called automatic reduction in property tax valuation is not required for all parcels subject to a housing-subsidy covenant, but instead, an individualized consideration of the effect a particular covenant has on a property’s fair market value is demanded. Franks v. Town of Essex, 2013 VT 84, 194 Vt. 595, 87 A.3d 418, 2013 Vt. LEXIS 87 (2013).

Municipal listers have a duty to include “a consideration of a decrease in value” from a qualifying housing-subsidy covenant in determining fair market value of property for tax purposes, which does not mean an automatic decrease in valuation. Franks v. Town of Essex, 2013 VT 84, 194 Vt. 595, 87 A.3d 418, 2013 Vt. LEXIS 87 (2013).

Nothing in the statute regarding taxation of buildings on leased land creates an exception to the town listers’ duty to list the real estate identified therein—buildings on leased land—at fair market value, which is most persuasively established through comparable sale transactions. Lesage v. Town of Colchester, 2013 VT 48, 194 Vt. 377, 81 A.3d 1142, 2013 Vt. LEXIS 48 (2013).

State appraiser did not err in valuing a taxpayer’s property. The taxpayer had not shown that she was required to incur certain costs before she could sell the nine lots into which her property was subdivided; the only evidence presented concerning a potential land use dispute on one lot was speculative and conclusory; the appraiser had expressly disavowed reliance on asking prices for nearby properties; and because the taxpayer had not shown that the individual lots could not be sold at the time of the appraisal, there was no merit to her argument that the appraiser incorrectly determined that the highest and best use of the property was for sale and single family residential use of the nine lots. Barnett v. Town of Wolcott, 2009 VT 32, 185 Vt. 627, 970 A.2d 1281, 2009 Vt. LEXIS 33 (2009) (mem.).

Where specific circumstances surrounding a transaction operate to dramatically depress the sale price of property below its reasonable value, courts may look to indicia other than the sale price as competent evidence of fair market value. Great Bay Hydro Corp. v. Town of Derby, 2007 VT 10, 181 Vt. 574, 917 A.2d 486, 2006 Vt. LEXIS 372 (2006) (mem.).

Where specific circumstances surrounding a transaction operate to dramatically depress the sale price of property below its reasonable value, courts may look to indicia other than the sale price as competent evidence of fair market value. Great Bay Hydro Corp. v. Town of Derby, 2007 VT 10, 181 Vt. 574, 917 A.2d 486, 2006 Vt. LEXIS 372 (2006) (mem.).

Town failed in its claims that an appraiser applied a statutory provision retrospectively in his assessment of subsidized housing. The appraiser did discuss the amendments to the definition of fair market value, and he even went so far as to demonstrate that the results would be the same under the statute as under the process which he used. Nevertheless, the appraiser’s method differed in several key ways from the method outlined in the new statute. State Housing Authority v. Town of Northfield, 2007 VT 63, 182 Vt. 90, 933 A.2d 700, 2007 Vt. LEXIS 155 (2007).

All of the elements, tangible and intangible, that combine to give real property fair market value are subject to property tax. Barrett v. Town of Warren, 2005 VT 107, 179 Vt. 134, 892 A.2d 152, 2005 Vt. LEXIS 249 (2005).

Where a town met its burden of production with respect to fair market value and taxpayer failed to show an arbitrary or unlawful valuation, reversal of the State appraiser’s decision setting taxpayer’s property in the town grand list at less than its fair market value was required because it was contrary to statutory requirements. Barrett v. Town of Warren, 2005 VT 107, 179 Vt. 134, 892 A.2d 152, 2005 Vt. LEXIS 249 (2005).

A difference often exists between listed and fair market values of real property, and that difference is permissible so long as the ratio between listed and fair market values is consistent among properties. Allen v. Town of W. Windsor, 2004 VT 51, 177 Vt. 1, 852 A.2d 627, 2004 Vt. LEXIS 162 (2004).

There is no need for any particular estimation method for valuing real property for tax purposes when a recent bona fide sale exists to illustrate fair market value. Barrett/Canfield, LLC v. City of Rutland, 171 Vt. 196, 762 A.2d 823, 2000 Vt. LEXIS 247 (2000).

There is no requirement that a property be actively marketed in order to establish a bona fide sale for purposes of determining fair market value for tax purposes; all that is required for a bona fide sale is that it be between a willing buyer and a willing seller, at arms length, in good faith, and not to “rig” a value. Barrett/Canfield, LLC v. City of Rutland, 171 Vt. 196, 762 A.2d 823, 2000 Vt. LEXIS 247 (2000).

Although the sale price is strong if not conclusive evidence of value of property for tax appraisal purposes, the court is not required to adopt the sale price as the fair market value nor is the court limited in its taking of evidence or the means that may be used in determining market value. Vermont National Bank v. Leninski, 166 Vt. 577, 687 A.2d 890, 1996 Vt. LEXIS 131 (1996) (mem.).

Taxpayer’s assertion that a house must be valued the same wherever it is located is erroneous; 32 V.S.A. § 3481(1) requires valuation to be based on fair market value, which includes factors including, but not limited to, location. Wennar v. Town of Georgia, 161 Vt. 632, 641 A.2d 101, 1994 Vt. LEXIS 31 (1994) (mem.).

Superior Court properly granted taxpayers’ motion for summary judgment in property tax appeal, where taxpayers offered evidence of an actual sale price pursuant to a contract signed within days of the listing date, and the town offered no specific evidence that under the circumstances of the sale the sale price was an inadequate indication of fair market value. Wilde v. Town of Norwich, 152 Vt. 327, 566 A.2d 656, 1989 Vt. LEXIS 179 (1989).

While the most persuasive method of appraising residential property is to establish fair market value through bona fide sales transactions, this section does not prescribe the method nor limit the manner in which evidence of fair market value may be presented to the State Board of property tax appraisers. Sondergeld v. Town of Hubbardton, 150 Vt. 565, 556 A.2d 64, 1988 Vt. LEXIS 231 (1988).

In disputed appraisal of lakefront property, consideration of sale of property on same lake that occurred seven months after grand list assessment date was not error. Sondergeld v. Town of Hubbardton, 150 Vt. 565, 556 A.2d 64, 1988 Vt. LEXIS 231 (1988).

This section makes fair market value the standard for appraisal. Royal Parke Corp. v. Town of Essex, 145 Vt. 376, 488 A.2d 766, 1985 Vt. LEXIS 301 (1985).

When fair market value of taxable property can be established by the operation of bona fide sale transactions, a market value is perforce established for appraisal purposes. Royal Parke Corp. v. Town of Essex, 145 Vt. 376, 488 A.2d 766, 1985 Vt. LEXIS 301 (1985).

So long as evidence of a sale of taxable property proves a transaction between a willing buyer and willing seller at arms length, entered into in good faith, and not to rig a market value, this section is not concerned about the reasons either buyer or seller attributed the agreed value to the property. Royal Parke Corp. v. Town of Essex, 145 Vt. 376, 488 A.2d 766, 1985 Vt. LEXIS 301 (1985).

Where property originally operated as an apartment complex was reappraised following its conversion to condominium units, the selling price of the units sufficiently established their fair market value, and on appeal of the reappraisal to the State Board of Appraisers the lack of use of devices for approximation of their value was appropriate. Royal Parke Corp. v. Town of Essex, 145 Vt. 376, 488 A.2d 766, 1985 Vt. LEXIS 301 (1985).

Water and sewer systems are items which may enhance the market value of a piece of property when appurtenant to it. Porter v. Town of Newark, 145 Vt. 367, 488 A.2d 769, 1985 Vt. LEXIS 302 (1985).

Fair market value is defined as the price which a property will bring in the market taking into consideration its availability, use, and limitations. Villeneuve v. Town of Waterville, 141 Vt. 154, 446 A.2d 358, 1982 Vt. LEXIS 498 (1982).

Fair market value is the price property will bring in the market, taking into consideration availability, use and limitations of the property, and although many different methods exist for determining fair market value, reliance on listed values is not one of them as listed values reflect an equalized value that may well be purposely changed from the fair market value and they often lag behind the values of the market place; and fair market value finding, in tax appeal, based on listed values of other properties, would be reversed on appeal. City of Barre v. Town of Orange, 138 Vt. 484, 417 A.2d 939, 1980 Vt. LEXIS 1269 (1980).

The board of tax appraisers may use devices to assist in arriving at the fair market value of property, but the use of any single method or even a combination of methods that leads the appraisers astray of their statutory responsibility will not be accepted. Town of Barnet v. Central Vt. Public Service Corp., 131 Vt. 578, 313 A.2d 392, 1973 Vt. LEXIS 357 (1973).

Cost and market value are not the same, and if producing cause or sole basis of appraisal of personal property was formula whereby cost new is reduced by 50% depreciation allowance, it was improper and without foundation. In re Heath, 128 Vt. 519, 266 A.2d 812, 1970 Vt. LEXIS 265 (1970).

Fair market value is the price brought in the market when offered for sale and purchased, taking into consideration availability, prospective or potential use, age, condition, and all other elements which give a market value, and there usually is no one controlling element. In re Heath, 128 Vt. 519, 266 A.2d 812, 1970 Vt. LEXIS 265 (1970).

Farms.

Characterization of property as a farm affects use value, not fair market value, which is the standard for listing. Hinckley v. Town of Jericho, 149 Vt. 345, 543 A.2d 260, 1988 Vt. LEXIS 37 (1988).

Findings and conclusions.

In assessing real property, the law merely requires that the court sift through the evidence and make findings sufficient to indicate to the parties how it reached its ultimate conclusion, not that it make findings tailored to any particular theory of valuation. Scott Construction, Inc. v. City of Newport Board of Civil Authority, 165 Vt. 232, 683 A.2d 382, 1996 Vt. LEXIS 70 (1996).

Flexibility of formula.

An inflexible formula that fails to take into account various factors provided by law cannot be employed as sole basis for an appraisal of property value for purposes of taxation. Welch v. Town of Ludlow, 136 Vt. 83, 385 A.2d 1105, 1978 Vt. LEXIS 692 (1978).

Jurisdiction.

Upon appeal by taxpayers from decisions of a town board of civil authority, which applied separate equalization ratios to separate classes of real property, the State Board of Appraisers had the jurisdiction to reach a decision, despite statute which allows the Board to equalize property values only to “comparable properties within the town.” Not every dispute over what is a comparable property must be resolved initially as a dispute over jurisdiction. Taxpayers are entitled to argue for a view of comparability as favorable as they can reasonably achieve without having their appeal summarily dismissed because they crossed over an unseen jurisdictional line. Knollwood Building Condominiums v. Town of Rutland, 166 Vt. 529, 699 A.2d 31, 1997 Vt. LEXIS 99 (1997).

Land-value table.

In the assessment of taxpayers’ real property, use of a land-value table was permissible under the tax statute even though the problem with the use of land-value tables is the potential for arbitrary valuations; where the table is based on appropriate sales data, this problem is mitigated. Scott Construction, Inc. v. City of Newport Board of Civil Authority, 165 Vt. 232, 683 A.2d 382, 1996 Vt. LEXIS 70 (1996).

Listed value.

The fact that there is a constitutional compulsion to recognize a general discounting by a town of all its taxable property below the requirement of subdivision (2) of this section that listed value equal 100% of appraisal value does not mean that towns are free to ignore the 100% requirement or that the Supreme Court approves such discounts as lawful. Royal Parke Corp. v. Town of Essex, 145 Vt. 376, 488 A.2d 766, 1985 Vt. LEXIS 301 (1985).

Partition.

Partition of taxpayers’ property (former dairy farm consisting of about 148 acres and two residences) for appraisal purposes did not violate 32 V.S.A. § 4467 (appeal of property evaluation) even though that statute refers to “the property” and not to parts of a property, as there is nothing inconsistent in a statutory reference to “the property” and a valuation analysis that considers parts of the whole. Scott Construction, Inc. v. City of Newport Board of Civil Authority, 165 Vt. 232, 683 A.2d 382, 1996 Vt. LEXIS 70 (1996).

Sliding scale formula.

Town’s sliding scale method of land reappraisal based on acreage with reduction for swamp, ledge, or steep property, per acre value decreasing as acreage increased, did not meet this section’s requirements and could not justify assessment increase, as it did not take into account, as statute required, a fair market appraisal based on availability, potential, prospective use, deficiencies, age and condition of property, and all other elements contributing to fair market value. Ames v. Town of Danby, 136 Vt. 78, 385 A.2d 1075, 1978 Vt. LEXIS 691 (1978).

The sliding scale formula places a value upon land in accordance with an acreage grouping, and as it relies on only one criterion, acreage, it cannot be employed as the sole basis for an appraisal upon fair market value. Bloomer v. Town of Danby, 135 Vt. 56, 370 A.2d 194, 1977 Vt. LEXIS 553 (1977).

Uniform ratio.

Although a given property is appraised and listed at the appropriate statutory rate, the fact that the rate may be discriminatory is not foreclosed, and the constitutional and statutory requirement that all property, real and personal, must be subjected to a uniform ratio of fair market to listed value takes precedence over a legislative directive to list at a fixed percentage of fair market value. Town of Barnet v. Palazzi Corp., 135 Vt. 298, 376 A.2d 24, 1977 Vt. LEXIS 612 (1977).

Cited.

Cited in Jeffer v. Town of Chester, 142 Vt. 23, 451 A.2d 823, 1982 Vt. LEXIS 578 (1982); Kruse v. Town of Westford, 145 Vt. 368, 488 A.2d 770, 1985 Vt. LEXIS 304 (1985); Gionet v. Town of Goshen, 152 Vt. 451, 566 A.2d 1349, 1989 Vt. LEXIS 187 (1989); In re Summit Ventures, Inc., 135 B.R. 483, 1991 Bankr. LEXIS 1862 (Bankr. D. Vt. 1991); USGen New Eng., Inc. v. Town of Rockingham, 2003 VT 102, 176 Vt. 104, 838 A.2d 927, 2003 Vt. LEXIS 293 (2003); Drumheller v. Drumheller, 2009 VT 23, 185 Vt. 417, 972 A.2d 176, 2009 Vt. LEXIS 27 (2009).

Law Reviews —

For note, “Changing Vermont’s Current Use Appraisal Program to Provide Property Tax Incentives for Conservation Easements,” see 17 Vt. L. Rev. 165 (1992).

§ 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.

History

Source.

1957, No. 221 . V.S. 1947, § 644. P.L. § 588. G.L. § 682. P.S. § 494. V.S. § 360. R.L. § 257. G.S. 83, § 2. 1860, No. 34 , § 1. 1855, No. 43 , § 2. 1841, No. 16 , § 1. 1825, No. 9 , §§ 4-6, 10.

CROSS REFERENCES

Tax lists generally, see chapter 129 of this title.

ANNOTATIONS

Date of appraisal.

Under this section, April 1 of each year is the appraisal date for determining the value of real property in the town. In re Summit Ventures, Inc., 135 B.R. 483, 1991 Bankr. LEXIS 1862 (Bankr. D. Vt. 1991).

Rolling reappraisal.

“Rolling reappraisal” method of property valuation, reassessing one class of property each year determined to be most in need, was not inconsistent with the obligations imposed on towns as to the listing of real property. Alexander v. Town of Barton, 152 Vt. 148, 565 A.2d 1294, 1989 Vt. LEXIS 283 (1989).

Time liability attaches.

The last owner of real estate on first day of April in any year continues liable for taxes legally assessed thereon in that year regardless of subsequent conveyances. Fulton v. Aldrich, 76 Vt. 310, 57 A. 108, 1904 Vt. LEXIS 140 (1904).

Trust funds.

Taxation of property interest of beneficiaries in trust fund located outside State is embraced in statutory provisions providing for taxation of “personal estate,” without specific enumeration; the exemptions enumerated in § 3802 of this title not covering property interest of a cestui que trust under a trust agreement. City of St. Albans v. Avery, 95 Vt. 249, 114 A. 31, 1921 Vt. LEXIS 208, cert. denied, 257 U.S. 640, 42 S. Ct. 51, 66 L. Ed. 411, 1921 U.S. LEXIS 1485 (1921).

Cited.

Cited in Wilde v. Town of Norwich, 152 Vt. 327, 566 A.2d 656, 1989 Vt. LEXIS 179 (1989).

§ 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.

History

Source.

V.S. 1947, § 753. 1945, No. 10 , § 1. P.L. § 708. G.L. § 814. 1915, No. 34 , § 6. P.S. § 583. V.S. § 444. 1882, No. 2 , § 34. R.L. § 328. 1880, No. 78 , § 12.

CROSS REFERENCES

Punishment for perjury, see 13 V.S.A. chapter 65.

ANNOTATIONS

Pleadings.

Indictment for perjury for violating provisions of law in regard to grand lists following statutory form, which merely quoted the statement claimed to be false and omitted to aver that the writing was one which the law required to be verified by oath, or to state it in substance so that the court might see for itself, was bad on demurrer. State v. Rowell, 70 Vt. 405, 41 A. 430, 1898 Vt. LEXIS 53 (1898).

§ 3484. Furnishing names to listers.

  1. 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.
  2. 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.

History

Source.

Subsec. (a): V.S. 1947, § 754. P.L. § 709. G.L. § 815. P.S. § 585. V.S. § 446. 1886, No. 13 , § 1.

Subsec. (b): V.S. 1947, § 755. P.L. § 710. G.L. § 816. P.S. § 586. V.S. § 447. 1886, No. 13 , § 2.

§ 3485. Records to be kept relating to deeds and mortgages.

  1. 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.
  2. Failure on the part of the town clerk to furnish the aforesaid copies shall not render the town liable in damages to any person. A town clerk who willfully fails to furnish such copies shall be fined $10.00 for each offense.

HISTORY: Amended 1959, No. 21 , eff. March 6, 1959; 1995, No. 109 (Adj. Sess.), § 2.

History

Source.

V.S. 1947, § 711. P.L. § 666. 1933, No. 157 , § 608. 1931, No. 17 , Pt. I, § 37, 1919, No. 31 , § 1. G.L. § 778. 1915, No. 33 , § 1. 1910, No. 44 , § 1. P.S. § 559. V.S. § 422. R.L. § 345. 1863, No. 18 , §§ 2, 3. G.S. 83, § 38. 1855, No. 43 , § 35. 1841, No. 16 , § 22.

Amendments

—1995 (Adj. Sess.) Section amended generally.

—1959. Added provision in subsec. (b) of this section relating to furnishing of copy of transfer book or card index, and deleted former subsec. (c) relating to furnishing of such copy in year of quadrennial appraisal.

Notes to Opinions

Correction of record.

A recording officer has the authority and duty while in office to correct the errors which he made in the records whenever he discovers them or they are brought to his attention so as to make the records conform to the facts without the necessity of re-recording the instrument; the authority, however, being incidental to the office ends with the termination of the office; the clerk cannot come in to correct his past mistakes, but a successor to the office may correct errors when he discovers them from data in his office; however, the practice should be if a clerk discovers an error of his own or his predecessor, any correction should be initiated and dated in order that the record reflect all of the facts and protect their reliability. 1966-68 Vt. Op. Att'y Gen. 86.

§ 3486. Repealed. 1971, No. 41, § 2, eff. April 7, 1971.

History

Former § 3486. Former § 3486, relating to restriction on removal of mobile homes and trailers, was derived from 1967, No. 358 (Adj. Sess.), and is now covered by § 5079 of this title.

Chapter 123. How, Where, and to Whom Property Is Taxed

History

Revision note—

Deleted “and Polls Are” from chapter heading and inserted “is” pursuant to 1977, No. 118 (Adj. Sess.) § 1.

CROSS REFERENCES

Exemptions from taxation, see chapter 125 of this title.

Property transfer tax, see chapter 231 of this title.

Subchapter 1. Subjects and Manner of Taxation

§ 3601. Repealed.

History

Former § 3601. Former § 3601, relating to setting of polls in grand list, was repealed pursuant to 1977, No. 118 (Adj. Sess.), § 1 (b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Section 3601 was derived from V.S. 1947, § 638. 1937, No. 15 , § 1. P.L. § 583. 1921, No. 30 , § 1. 1919, No. 95 , § 2. G.L. § 677. 1910, No. 28 , § 1. P.S. § 489. 1902, No. 10 , § 1. V.S. § 357. 1892, No. 11 , § 1. R.L. § 266. 1870, No. 42 . 1868, No. 5 . G.S. 83, § 1. 1855, No. 43 , § 1. 1850, No. 37 . 1842, No. 1 , § 1. 1841, No. 16 , §§ 4, 5. 1825, No. 9 , § 2. R. 1797, p. 566, § 2. R. 1797, p. 569, § 5. 1791, Jan., p. 17, 19, §§ 1, 6. 1787, p. 10, 11; and amended by 1965, No. 126 , § 2; 1966, No. 21 (Sp. Sess.), § 1; 1969, No. 139 , § 18; 1971, No. 90 , § 15; 1977, No. 105 , § 7.

§ 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.

History

Source.

V.S. 1947, § 639. P.L. § 584. G.L. § 678. 1910, No. 27 , § 1. P.S. § 490. V.S. § 358. 1890, No. 15 , § 1.

ANNOTATIONS

Cited.

Cited in Weyerhaeuser Co. v. Town of Hancock, 151 Vt. 279, 559 A.2d 158, 1989 Vt. LEXIS 43 (1989).

§ 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.

HISTORY: Added 1999, No. 49 , § 24, eff. June 2, 1999; amended 2021, No. 71 , § 14.

History

Amendments

—2021. In the second sentence, substituted “exemptions in subdivisions” for “exemption in subdivision” and inserted “and 3802(19)” preceding “of this title”.

1999. 1999, No. 49 , § 38(j), eff. June 2, 1999, provides that this section shall apply to grand lists for 2000 and after.

§ 3603. Construction equipment.

  1. 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.
  2. Nothing herein 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.

HISTORY: Amended 1963, No. 92 , §§ 1, 2, eff. May 14, 1963; 1977, No. 23 , § 1, eff. March 29, 1977.

History

Source.

1955, No. 202 , § 1.

Revision note—

At the beginning of the fourth sentence of subsec. (a), substituted “transportation board” for “state highway board” in light of 19 V.S.A. § 6 .

Amendments

—1977. Subsec. (a): Amended generally.

—1963. Subsec. (a): Changed “machinery” to “construction equipment”; added reference to “dams, reservoirs, public utilities or buildings except equipment used in connection with soil and water conservation programs” and inserted “and other state agencies”.

Subsec. (b): Added.

ANNOTATIONS

Applicability.

Application of the provisions of subsection (a) of this section is limited to construction equipment not otherwise exempt. Pizzagalli Construction Co. v. Town of Whitingham, 146 Vt. 490, 505 A.2d 678, 1986 Vt. LEXIS 317 (1986).

§ 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.

History

Source.

V.S. 1947, § 640. P.L. § 585. G.L. § 679. P.S. § 491. 1900, No. 12 , §§ 2, 7.

§ 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.

History

Source.

V.S. 1947, § 641. 1939, No. 17 , §§ 1, 3.

§ 3606. Standing timber.

The sale or conveyance of standing timber shall not affect the valuation of the underlying land.

HISTORY: Amended 1997, No. 71 (Adj. Sess.), § 7c, eff. Jan. 1, 1998.

History

Source.

1957, No. 221 , § 5. V.S. 1947, § 677. P.L. § 617. G.L. § 718. P.S. § 509. 1906, No. 22 , §§ 1, 2.

Amendments

—1997 (Adj. Sess.). Rewrote section, which related to taxing the sale of standing timber.

CROSS REFERENCES

Taxation of agricultural and forest lands, see chapter 124 of this title.

§ 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.

History

Source.

V.S. 1947, § 678. P.L. § 618. G.L. § 719. 1912, No. 39 , §§ 1, 2.

ANNOTATIONS

Current use.

This section enacted in 1912 neither contemplated today’s dramatic value changes in rural lands, nor was intended to protect land from taxation on account of heightened value for nonagricultural use; and section does not require orchard, most of which was established at least since the late 1940s, to be valued as agricultural land. Fayetteco, Inc. v. City of South Burlington, 131 Vt. 625, 313 A.2d 3, 1973 Vt. LEXIS 366 (1973).

§ 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.

HISTORY: Added 1983, No. 215 (Adj. Sess.), § 3, eff. May 10, 1984; amended 1987, No. 249 (Adj. Sess.).

History

Amendments

—1987 (Adj. Sess.) Section amended generally.

1983, No. 215 (Adj. Sess.), § 4, eff. May 10, 1984, provided: “This act shall take effect from passage and affect tax years beginning on January 1, 1984 and thereafter.”

§ 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.

History

Source.

V.S. 1947, § 642. P.L. § 586. G.L. § 680. P.S. § 492. 1896, No. 11 , §§ 1, 2.

ANNOTATIONS

Airplane hangar.

A hangar, as a structure designed to enclose an area for sheltering airplanes, is a building. Because a hangar was a building on leased land, it was required be set in the grand list as real estate. Gordon v. Board of Civil Authority, 2006 VT 94, 180 Vt. 299, 910 A.2d 836, 2006 Vt. LEXIS 178 (2006).

Fair market value.

Nothing in the statute regarding taxation of buildings on leased land creates an exception to the town listers’ duty to list the real estate identified therein—buildings on leased land—at fair market value, which is most persuasively established through comparable sale transactions. Lesage v. Town of Colchester, 2013 VT 48, 194 Vt. 377, 81 A.3d 1142, 2013 Vt. LEXIS 48 (2013).

Location.

Town was not precluded from considering location-related “intangible” factors in assessing taxpayers’ seasonal lakefront camps situated on leased land. The location-related factors were plainly “intimately intertwined” with the fair market value of the buildings, as reflected by comparable sale transactions. Lesage v. Town of Colchester, 2013 VT 48, 194 Vt. 377, 81 A.3d 1142, 2013 Vt. LEXIS 48 (2013).

Real estate.

Because the Legislature has chosen to define taxable real estate, the Supreme Court may not disregard that choice in favor of a common-law definition of real estate for tax purposes. Gordon v. Board of Civil Authority, 2006 VT 94, 180 Vt. 299, 910 A.2d 836, 2006 Vt. LEXIS 178 (2006).

Ski facilities.

Where ski lift facilities installed by plaintiff on lands leased from the State could not be removed by plaintiff on termination of the lease, the annexation was complete and such lifts were part of the real estate for tax purposes. Sherburne Corporation v. Town of Sherburne, 124 Vt. 481, 207 A.2d 125, 1965 Vt. LEXIS 276 (1965).

Tax exempt landowner.

This section contemplates two separate listings when a building is located on land not owned by the owner of the building: one for the building and one for the land. There is nothing in the statutory scheme to support the theory that the tax exempt status of the landowner must be transferred to the building owner. Gordon v. Board of Civil Authority, 2006 VT 94, 180 Vt. 299, 910 A.2d 836, 2006 Vt. LEXIS 178 (2006).

§ 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.

HISTORY: Amended 1965, No. 45 .

History

Source.

V.S. 1947, § 643. P.L. § 587. G.L. § 681. P.S. § 493. V.S. § 359. R.L. § 268. G.S. 83, § 4. 1855, No. 43 , § 4.

Amendments

—1965. Substituted the words “have an appraisal value” for the words “be set in the list”.

ANNOTATIONS

Cited.

Cited in Sherburne Corp. v. Town of Sherburne, 145 Vt. 581, 496 A.2d 175, 1985 Vt. LEXIS 332 (1985).

§ 3610. Taxation of perpetual leased lands.

  1. 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, his or her 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.
  2. 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 thereunder, 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.
  3. 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 his or her 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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 his or her portion of the annual rental due the grantee.

HISTORY: Added 1967, No. 366 (Adj. Sess.), § 1.

ANNOTATIONS

Applicability.

Vermont Code requires towns to list perpetual leases as real estate to be taxed to the lessee, with certain exemptions and conditions. The statute is aimed at making owners of perpetual leases of land the effective owners of the property for purposes of taxation—nothing more. Lesage v. Town of Colchester, 2013 VT 48, 194 Vt. 377, 81 A.3d 1142, 2013 Vt. LEXIS 48 (2013).

Exemptions.

The provisions of a law exempting perpetual lease lands from taxation, in effect at the time the charter is granted, form conditions of the grant, and the State cannot later repeal or violate such conditions. Dodge v. Town of Worcester, 129 Vt. 441, 282 A.2d 799, 1971 Vt. LEXIS 287 (1971).

Property tax exemption statute enacted in 1814 and in effect when leases were given in 1819 and 1821 of land granted in 1781 and 1763, did not become a provision of such leases, but rather, only exempted the lands while it was in effect, so that subsequent assignees under the leases were not entitled to an exemption where the statute was no longer in effect. Dodge v. Town of Worcester, 129 Vt. 441, 282 A.2d 799, 1971 Vt. LEXIS 287 (1971).

Substantially in perpetuity.

Inclusion of the language “substantially in perpetuity” in subsection (a) of this section demonstrates that the Legislature intended to allow taxation of lease lands essentially equivalent to fee simple interests. Weyerhaeuser Co. v. Town of Hancock, 151 Vt. 279, 559 A.2d 158, 1989 Vt. LEXIS 43 (1989).

Lease for 999 years was substantially in perpetuity and land was taxable under this section. Weyerhaeuser Co. v. Town of Hancock, 151 Vt. 279, 559 A.2d 158, 1989 Vt. LEXIS 43 (1989).

Cited.

Cited in Sherburne Corp. v. Town of Sherburne, 145 Vt. 581, 496 A.2d 175, 1985 Vt. LEXIS 332 (1985).

Notes to Opinions

Rent credit.

Under this section’s provision that annual rent 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 land is located, where taxpayer had an interest in 400 acres and the interest in 154 of the acres was by perpetual lease, the rent could only be credited against the tax on the 154 leased acres and could not be credited against the tax on the whole 400 acres. 1970-72 Vt. Op. Att'y Gen. 195.

§ 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.

HISTORY: Amended 1957, No. 219 , § 2, eff. July 1, 1961.

History

Source.

V.S. 1947, § 645. 1937, No. 20 , § 1.

Amendments

—1957. “Appraisal” substituted for “quadrennial appraisal”.

§ 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.

History

Source.

V.S. 1947, § 646. 1937, No. 20 , § 2.

§ 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.

History

Source.

V.S. 1947, § 647. 1937, No. 20 , § 3.

§ 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.

History

Source.

V.S. 1947, § 670. P.L. § 608. G.L. § 702. P.S. § 508. V.S. § 373. 1891, No. 15 , § 1.

§§ 3615, 3616. Repealed. 1979, No. 203 (Adj. Sess.), § 5, eff. May 7, 1980.

History

Former §§ 3615, 3616. Former § 3614, renumbered § 3615, relating to State forests and parks, was derived from V.S. 1947, § 679; 1947, No. 11 , § 1; P.L. § 621; 1929, No. 14 , § 3; 1919, No. 28 , §§ 1, 2; G.L. § 722; 1912, No. 40 , § 2, and amended by 1977, No. 105 , § 22; 1967, No. 366 (Adj. Sess.), § 5; 1957, No. 221 , § 6.

Former § 3616, relating to listing of State park land, was derived from 1961, No. 142 . § 3660 was repealed by 1997 (Adj. Sess.), No. 71, Section 22, eff. Jan. 1, 1998.

§ 3617. Repealed. 1991, No. 203 (Adj. Sess.), § 1, eff. May 27, 1992.

History

Former § 3617. Former § 3617, relating to alternative methods of business personal property taxation, was derived from 1975, No. 101 , § 1.

Application of repeal. 1991, No. 203 (Adj. Sess.), § 6, eff. May 27, 1992, provided in part: “An election by a town to exempt inventory and to tax business personal property under the provisions of 32 V.S.A. §§ 3802(14) , 3617 and 3618, prior to the effective date of this act [May 27, 1992], shall remain in effect after the passage of this act until repealed or amended by a vote of the town, except the election made in the town of Marshfield on March 3, 1992 to tax business machinery and equipment is declared to be without force and effect as the legislature finds it would not have been made if the voters of that town had the option available as provided by this act [which repealed this section, amended sections 3618 and 3802 of this title and section 3458a of Title 16, and added sections 3848 and 3849 of this title].

§ 3618. Business personal property.

  1. 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.
  2. 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.
  3. As used in this section:
    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.
    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.

HISTORY: 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.

History

Revision note

—2013. In subdiv. (c)(1), deleted “, without limitation,” following “including” in accordance with 2013, No. 5 , § 4.

Amendments

—1991 (Adj. Sess.) Subsec. (a): Rewrote the introductory paragraph.

—1985 (Adj. Sess.) Subdiv. (c)(1): Added “nor does it include poles, lines and fixtures which are taxable under sections 3620 and 3659” following “real property” at the end of the second sentence.

1985 (Adj. Sess.) amendment. 1985, No. 169 (Adj. Sess.), § 4, eff. May 5, 1986, provided that the amendment to subdiv. (c)(1) shall affect property taxes assessed on April 1, 1984 and thereafter.

1991 (Adj. Sess.) amendment. 1991, No. 203 (Adj. Sess.), § 6, eff. May 27, 1992, provided in part: “An election by a town to exempt inventory and to tax business personal property under the provisions of 32 V.S.A §§ 3802(14), 3617 and 3618, prior to the effective date of this act [May 27, 1992], shall remain in effect after the passage of this act until repealed or amended by a vote of the town, except the election made in the town of Marshfield on March 3, 1992 to tax business machinery and equipment is declared to be without force and effect as the legislature finds it would not have been made if the voters of that town had the option available as provided by this act [which amended this section, section 3802 of this title and section 3458a of Title 16, added sections 3848 and 3849 of this title, and repealed section 3617 of this title].

Savings provisions—Tax stabilization agreement. 1975, No. 101 , § 4, eff. April 30, 1975, provided: “Nothing in this act [which added this section and sections 3617 and 3802(14) of this title] shall be construed to affect any tax stabilization agreement, in any form, entered into by any municipality in existence on the effective date of the act [April 30, 1975].”

ANNOTATIONS

Net book value.

Where a fixed value like net book value is the basis for appraisal of property, no “rise and fall in value” will affect that appraisal, and equalization ratios applicable to market value properties under § 4467 of this title are immaterial. Grand Union Co. v. City of Winooski, 152 Vt. 193, 566 A.2d 398, 1988 Vt. LEXIS 246 (1988).

Nonprofit organizations.

Exclusion in this section of business personal property of nonprofits from the class of property that could be considered taxable governed the question of whether a city could tax business personal property of nonprofit businesses and, since plaintiff organization was a not-for-profit enterprise, the city lacked authority to tax its personal property. Vermont Alliance of Nonprofit Organizations v. City of Burlington, 2004 VT 57, 177 Vt. 47, 857 A.2d 305, 2004 Vt. LEXIS 176 (2004).

Because of the limitation in this section on a city’s ability to tax business personal property to those of businesses conducted for profit, a nonprofit organization was not required to qualify for the specific exemption contained in § 3802(4) of this title excluding personal estate used for public, pious, or charitable uses from taxation. Vermont Alliance of Nonprofit Organizations v. City of Burlington, 2004 VT 57, 177 Vt. 47, 857 A.2d 305, 2004 Vt. LEXIS 176 (2004).

Even though the exemption in § 3802(15) of this title, exempting real and personal property owned by a charitable, nonprofit organization devoted to the welfare, protection, and humane treatment of animals overlaps somewhat with subdivision (c)(1) of this section, limiting a city’s ability to tax business personal property to those of businesses conducted for profit, the latter provision is in no way redundant, as the former grants a tax exemption to both real and personal property of a specific class of nonprofit organizations, and, in any event, this overlap does not affect the fact that the Legislature excluded personal property of nonprofit businesses from the class of property subject to tax in the first instance. Vermont Alliance of Nonprofit Organizations v. City of Burlington, 2004 VT 57, 177 Vt. 47, 857 A.2d 305, 2004 Vt. LEXIS 176 (2004).

Real and personal property.

A town that values, for purposes of taxation, business personal property at fair market value may not have one equalization ratio for real property and another (or none) for personal property. Real and personal property must be considered comparable for purposes of the property valuation appeals statute. Knollwood Building Condominiums v. Town of Rutland, 166 Vt. 529, 699 A.2d 31, 1997 Vt. LEXIS 99 (1997).

Voter approval required.

Manufacturing machines set in place as permanent installations were taxable under § 3602 of this title and were not subject to this section’s more stringent “fixtures” test as town had not voted under [former] § 3617 to tax inventory and, therefore, this section did not apply. Weyerhaeuser Co. v. Town of Hancock, 151 Vt. 279, 559 A.2d 158, 1989 Vt. LEXIS 43 (1989), (Former § 3617 was repealed by 1991, No. 203 (Adj. Sess.), § 1, eff. May 27, 1992).

Cited.

Cited in Vermont Electric Power Co. v. Town of Cavendish, 158 Vt. 369, 611 A.2d 389, 1992 Vt. LEXIS 56 (1992).

§ 3619. Time-share projects.

  1. 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.
  2. 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.
  3. 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.

HISTORY: Added 1983, No. 18 , eff. March 31, 1983.

ANNOTATIONS

Valuation.

Hearing officer correctly determined as a matter of law that the profits of the entity that managed the time-share condominium could not be added to the value of the sale price of the individual time-share units. She correctly applied the relevant legal principles to conclude that unit sales alone reflected fair market value and that the statute governing taxation of time-share projects did not dictate otherwise. Jackson Gore Inn v. Town of Ludlow, 2020 VT 11, 211 Vt. 498, 228 A.3d 643, 2020 Vt. LEXIS 15 (2020).

§ 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.

HISTORY: Added 1985, No. 169 (Adj. Sess.), § 1, eff. May 5, 1986; amended 2021, No. 71 , § 15.

History

Amendments

—2021. Inserted “, except as provided under subdivision 3802(19) of this title” following “title”.

Applicability of enactment.

1985, No. 169 (Adj. Sess.), § 4, eff. May 5, 1986, provided that this section shall affect property taxes assessed on April 1, 1984 and thereafter.

ANNOTATIONS

Construction.

This section, regarding value at which electrical company property will be taxed, does not create a separate class of property which must be listed at full fair market value, since neither its wording nor its legislative history suggest anything but the opposite, and, when considered in context of Vermont property tax scheme, this section must yield to constitutional and equitable considerations. Vermont Electric Power Co. v. Town of Cavendish, 158 Vt. 369, 611 A.2d 389, 1992 Vt. LEXIS 56 (1992).

§ 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.

HISTORY: Added 2013, No. 174 (Adj. Sess.), § 32, eff. Jan. 1, 2015.

History

Effective date and applicability of 2013 (Adj. Sess.) enactment. 2013, No. 174 (Adj. Sess.), § 70(8) provides that Secs. 26-29 (solar plant exemptions and valuation) [which amended 32 V.S.A. §§ 3802(17) , 3481(1)(D), 3845, and 8701(c)] and 32 (valuation of natural gas and petroleum infrastructure) [which enacted this section] shall take effect on January 1, 2015 and apply to property appearing on grand lists lodged in 2015 and after.

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.

History

Source.

V.S. 1947, § 665. P.L. § 603. G.L. § 697. P.S. § 503. V.S. § 368. 1884, No. 7 , § 1. R.L. § 276. 1863, No. 18 , § 1. G.S. 83, § 9. 1885, No. 43 , § 8. 1841, No. 16 , § 6. 1825, No. 9 , § 3. 1805, p. 225. R. 1797, p. 568, § 4.

CROSS REFERENCES

Proration of taxes, see 27 V.S.A. § 309 .

ANNOTATIONS

Beneficial owner.

Where title to lands constituting watershed for a water system serving the people of the entire town of Brandon was held by trustees who were also trustees of Brandon fire district No. 1, the fire district was not beneficial owner of the property and not liable for taxes. Ladd v. Brandon Fire District No. 1, 124 Vt. 350, 205 A.2d 411, 1964 Vt. LEXIS 112 (1964).

Boundary disputes.

As property owners, plaintiffs seeking declaratory judgment to have boundary line determined for tax purposes had the right to be taxed only once on their land, part of which was being taxes by each of two towns. Poulin v. Town of Danville, 128 Vt. 161, 260 A.2d 208, 1969 Vt. LEXIS 219 (1969).

Where landowners being taxed on their land had no adequate remedy at law, court of chancery, in which landowner brought declaratory judgment proceeding to resolve boundary dispute and determine to which town taxes were legally owed, had equity jurisdiction to entertain and decide the matter and grant complete relief. Poulin v. Town of Danville, 128 Vt. 161, 260 A.2d 208, 1969 Vt. LEXIS 219 (1969).

Construction with other laws.

Because there are two separate grand list entries, ownership of the land itself was irrelevant in determining ownership of an airplane hangar constructed thereon. Where plaintiff stated as an undisputed fact in support of his motion for summary judgment that he was owner and title holder of the hangar, by the plain language of the statute governing to whom a property tax is assessed, plaintiff was responsible for the real estate taxes on the hangar, and the State, lessor of the land, was not responsible because it was not the owner of the hangar. Gordon v. Board of Civil Authority, 2006 VT 94, 180 Vt. 299, 910 A.2d 836, 2006 Vt. LEXIS 178 (2006).

This section, which permits a town, village, school, and fire district to list the last owner or possessor of real estate in the grand list, is a general rule that is applicable to property that is already taxable and by its plain language does not apply to properties already tax exempt pursuant to section 3802 of this title, governing general exemption from property tax. Magoon v. Board of Civil Authority, Town of Johnson, 140 Vt. 612, 442 A.2d 1276, 1982 Vt. LEXIS 456 (1982).

Where conveyance of property in 1979 to the State of Vermont reserved to the former owners for a term of years exclusive use and control of a portion of the land on which was situated a cottage and a pond, town could tax the property pursuant to former § 3615 of this title, which governed taxation of State forests and parks, but could not tax the former owners under this section, since the fee simple title was owned by the State. Magoon v. Board of Civil Authority, Town of Johnson, 140 Vt. 612, 442 A.2d 1276, 1982 Vt. LEXIS 456 (1982).

Trial court erred in concluding that town could, pursuant to this section, list forty-five acre parcel conveyed by property owners to the State of Vermont, with reservation of the exclusive use and control of the parcel to the former owners for a term of years, since the fee simple title in the parcel was owned by the State and exempt from local tax under § 3802 of this title, governing general exemption from property tax, and the land was only taxable pursuant to former § 3615 of this title, allowing for a limited tax on State forests and parks. Magoon v. Board of Civil Authority, Town of Johnson, 140 Vt. 612, 442 A.2d 1276, 1982 Vt. LEXIS 456 (1982).

Provisions of this section govern and control those of § 4152 of this title, that completed grand list shall contain a brief description, etc., of each separate parcel “of taxable real estate, owned by each taxpayer.” Doubleday v. Stockbridge, 109 Vt. 167, 194 A. 462, 1937 Vt. LEXIS 130 (1937).

Leased quarry.

Slate quarry, leased for purpose of manufacturing roofing slate, should be set in list of lessor; and if set in list of lessee, a tax assessed thereon is invalid. Hughes v. Vail, 57 Vt. 41, 1885 Vt. LEXIS 43 (1885).

Owner or possessor.

The holding of a fee simple estate is not necessary to incur liability for taxes assessed against property. Robtoy v. City of St. Albans, 132 Vt. 503, 321 A.2d 45, 1974 Vt. LEXIS 377 (1974).

Defendant, who acquired title and possession of property with knowledge that his grantors had previously agreed to sell the property to plaintiffs for a lesser price, as record owner of the property, was, under this statute, liable for taxes he paid on the property, and was properly denied recovery from plaintiffs of amount of taxes paid following the granting to plaintiffs of specific performance of their prior purchase and sale agreement with defendant’s grantors, absent promise by plaintiffs to pay such taxes. Potwin v. Tucker, 128 Vt. 142, 259 A.2d 781, 1969 Vt. LEXIS 215 (1969).

Under this section, listers may properly list real estate to vested remainderman. Town of Brattleboro v. Smith, 117 Vt. 425, 94 A.2d 407, 1953 Vt. LEXIS 110 (1953).

Where land was held by plaintiff under assignment of 999-year lease from town and did not belong to class of public lands exempt from taxation, plaintiff was possessor of land to whom taxes could lawfully be assessed under provisions of this section. Doubleday v. Stockbridge, 109 Vt. 167, 194 A. 462, 1937 Vt. LEXIS 130 (1937).

While requirement that real estate to be assessed in the name of the owner or possessor thereof is mandatory, it only requires that assessment shall designate name of owner or possessor with such degree of certainty as will not prejudice him in enjoyment of his rights as taxpayer, nor mislead him to his prejudice. Town of Orange v. City of Barre, 95 Vt. 267, 115 A. 238, 1921 Vt. LEXIS 210 (1921).

Contract for sale of land providing that upon subsequent determination and payment of purchase price, grantor would execute conveyances necessary to give full title was not sufficient to convey title and property was properly listed to grantor. Hutchins v. Barre Water Co., 74 Vt. 36, 52 A. 70, 1901 Vt. LEXIS 108 (1901).

Real estate, conveyed by deed wherein grantor reserves the use and possession, is properly set in grand list to grantor as owner thereof. Wilmot v. Lathrop, 67 Vt. 671, 32 A. 861, 1895 Vt. LEXIS 99 (1895).

Real estate.

Real estate, within the meaning of the tax law, is land with its fixtures and accessories—land, measurable and capable of description by metes and bounds. Hughes v. Vail, 57 Vt. 41, 1885 Vt. LEXIS 43 (1885).

Time of ownership.

Under this section, April 1 of each year is the date for determining record ownership of taxable real property in the town. In re Summit Ventures, Inc., 135 B.R. 483, 1991 Bankr. LEXIS 1862 (Bankr. D. Vt. 1991).

Town’s interest in bankruptcy debtors’ real property arose on April 1, the date for determining record ownership of taxable real property and appraising its value. In re Summit Ventures, Inc., 135 B.R. 483, 1991 Bankr. LEXIS 1862 (Bankr. D. Vt. 1991).

Last owner of real estate on first day of April in any year continues liable for taxes legally assessed thereon in that year regardless of subsequent conveyances. Fulton v. Aldrich, 76 Vt. 310, 57 A. 108, 1904 Vt. LEXIS 140 (1904).

Where plaintiff executed deed on March 10, which deed the town clerk neglected to record, and on April 4 plaintiff repurchased property from his grantee, and where by agreement the first deed was torn up on advice by the clerk that said deed had not been recorded and if it were destroyed, the title would stand as originally, the property should not have been set in the plaintiff’s list, as he was not the owner on the first day of April. Pitkin v. Parks, 54 Vt. 301, 1881 Vt. LEXIS 111 (1881).

Title.

Taxing authority may adopt description of state of title to property used by parties to transaction, though lacking in full substance. Sherburne Corporation v. Town of Sherburne, 124 Vt. 481, 207 A.2d 125, 1965 Vt. LEXIS 276 (1965).

Cited.

Cited in In re Corp. of Windham College, 34 B.R. 408, 1983 Bankr. LEXIS 5779 (Bankr. D. Vt. 1983); In re Abbey Church of St. Andrew, 145 Vt. 227, 485 A.2d 1263, 1984 Vt. LEXIS 584 (1984); Sherburne Corp. v. Town of Sherburne, 145 Vt. 581, 496 A.2d 175, 1985 Vt. LEXIS 332 (1985); Village of Lyndonville v. Town of Burke, 146 Vt. 435, 505 A.2d 1207, 1985 Vt. LEXIS 392 (1985); Kingsland Bay School, Inc. v. Town of Middlebury, 153 Vt. 201, 569 A.2d 496, 1989 Vt. LEXIS 224 (1989).

§ 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.

History

Source.

V.S. 1947, § 666. P.L. § 604. G.L. § 698. P.S. § 504. V.S. § 369. R.L. § 277. G.S. 83, § 9. 1855, No. 43 , § 8. 1841, No. 16 , § 6.

ANNOTATIONS

Construction with other laws.

Pursuant to this section the Small Business Administration as mortgagee in possession was the owner of the mortgaged premises and as such was exempt from taxation under § 3802(1) of this title. Town of Bristol v. United States, 315 F. Supp. 908, 1970 U.S. Dist. LEXIS 10734 (D. Vt. 1970).

Cited.

Cited in In re Corp. of Windham College, 34 B.R. 408, 1983 Bankr. LEXIS 5779 (Bankr. D. Vt. 1983).

§ 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.

History

Source.

V.S. 1947, § 667. P.L. § 605. G.L. § 699. P.S. § 505. V.S. § 370. R.L. § 278. G.S. 83, § 22. 1855, No. 43 , § 21. 1848, No. 35 . 1841, No. 16 , § 16.

§ 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.

History

Source.

V.S. 1947, § 3654. P.L. § 606. G.L. § 700. P.S. § 506. V.S. § 371. R.L. § 279. 1876, No. 18 , § 1. G.S. 83, § 12. 1855, No. 43 , § 11. 1841, No. 16 , § 11.

ANNOTATIONS

Degree of distribution.

In action by trustees of charitable trust created by will of husband of testatrix, degree of distribution in each estate was admissible, under this section, in determining taxability of property granted to such charitable use on assessment date. Boyce v. Sumner, 97 Vt. 473, 124 A. 853, 1924 Vt. LEXIS 187 (1924).

§ 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.

HISTORY: Amended 1961, No. 244 , eff. July 26, 1961.

History

Source.

V.S. 1947, § 669. P.L. § 607. G.L. § 701. P.S. § 507. V.S. § 372. R.S. § 280. G.S. 83, § 10. 1855, No. 43 , § 9. 1841, No. 16 , § 7. 1825, No. 9 , § 3. 1823, p. 21.

Revision note

—2013. In subdiv. (2), deleted “but not limited to” following “including” in accordance with 2013, No. 5 , § 4.

Amendments

—1961. Added par. (2) relating to utility lines.

§ 3656. Repealed. 1997, No. 60, § 55.

History

Former § 3656. Former § 3656, relating to taxation of State land, was derived from 1967, No. 366 (Adj. Sess.), § 2, amended by 1969, No. 122 , § 1 and had been previously repealed by 1995, No. 178 (Adj. Sess.), § 54.

§§ 3657, 3658. Repealed. 1979, No. 203 (Adj. Sess.), § 5, eff. May 7, 1980.

History

Former §§ 3657, 3658. Former § 3657, relating to appraisal of State forests and parks, was derived from V.S. 1947, § 671; P.L. § 609; 1933, No. 157 , § 550; 1929, No. 14 , § 3; 1919, No. 28 , § 1.

Former § 3658, relating to taxation of game refuges, was derived from 1957, No. 221 , § 4; V.S. 1947, § 672; 1941, No. 13 , § 1; P.L. § 610; 1925, No. 22 , § 1, and amended by 1977, No. 105 , § 25; 1971, No. 73 , § 4; 1959, No. 155 ; 1959, No. 329 (Adj. Sess.), § 23(b).

§ 3659. Municipal lands.

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.

HISTORY: 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.

History

Source.

1949, No. 17 . V.S. 1947, § 654. 1943, No. 13 , § 1. 1937, No. 19 , § 1. P.L. § 593. G.L. § 688. 1912, No. 38 .

Amendments

—1987 (Adj. Sess.) Inserted “pole” preceding “fixtures owned” in the fifth sentence.

—1985 (Adj. Sess.) Added the last sentence.

—1957. “Appraisal” substituted for “quadrennial appraisal”.

1985 (Adj. Sess.) amendment. 1985, No. 169 (Adj. Sess.), § 4, eff. May 5, 1986, provided that the amendment to this section shall affect property taxes assessed on April 1, 1984 and thereafter.

ANNOTATIONS

Airspace.

Imaginary surfaces extending from airport into airspace over city could not be assessed and taxed by the city. City of Winooski v. City of Burlington, 154 Vt. 325, 575 A.2d 199, 1990 Vt. LEXIS 68 (1990).

Constitutional law.

This section allowing a town which taxes land within its boundaries and owned by another town, to levy an additional tax not to exceed 75 percent of the property tax appraisal in lieu of a personal property tax, is not unconstitutional. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 134 Vt. 325, 360 A.2d 882, 1976 Vt. LEXIS 666 (1976).

Construction.

Taxing power granted by this section is to be strictly construed. City of Winooski v. City of Burlington, 154 Vt. 325, 575 A.2d 199, 1990 Vt. LEXIS 68 (1990).

Taxing power granted by this section is to be strictly construed, as it is contrary to State policy to subject its own property or that of its municipalities, which is devoted to a public use, to a general property tax, absent the most positive legislative enactment. City of Montpelier v. Town of Berlin, 143 Vt. 291, 465 A.2d 1104, 1983 Vt. LEXIS 518 (1983).

This section does not show a legislative intent to limit the statute to land acquired by a municipal corporation after the section’s effective date. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 129 Vt. 1, 270 A.2d 584, 1970 Vt. LEXIS 194 (1970).

Construction with other laws.

Where property similar to the property at issue cannot be found within the taxing municipality, this section does not apply; § 4467 relating to tax appeals generally is to be applied. City of Barre v. Town of Orange, 152 Vt. 442, 566 A.2d 951, 1989 Vt. LEXIS 180 (1989).

Pursuant to § 4152 this title, governing contents of the grand list of a town, 14 parcels of land owned by plaintiff city but located within the bounds of defendant town had to be treated as separate parcels for purposes of this section. City of Montpelier v. Town of Berlin, 143 Vt. 291, 465 A.2d 1104, 1983 Vt. LEXIS 518 (1983).

Where this section provided that municipal property outside the limits of the municipality shall be taxed by the municipality in which the property lies, the property to be valued at the same value as similar property, and property similar to the property at issue could not be found, this section did not apply and § 4467 of this title relating to tax appeals generally and providing that if it is found on appeal that the listed value does not correspond to the listed value of comparable properties within the town the property shall be set in the listing at a corresponding value to be applied. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 134 Vt. 325, 360 A.2d 882, 1976 Vt. LEXIS 666 (1976).

Imposition of additional tax.

When improvements have been made upon property acquired by a municipality, the situs town is entitled under this section to assess an additional tax, no greater than 75 percent of the land’s appraised value, in lieu of a personal property tax; however, when the property is not improved, the additional tax may not be assessed, since the situs town has suffered no loss of tax on personalty or improvements. City of Montpelier v. Town of Berlin, 143 Vt. 291, 465 A.2d 1104, 1983 Vt. LEXIS 518 (1983).

Under this section land upon which municipality had hydroelectric plant and a large part of a transmission and distribution plant, both of which were built after acquisition of the land, was to be taxed at its full appraisal value, the improvements could not be taxed, and, in lieu of a personal property tax, an additional tax computed upon, not equal to, 75 percent of the appraisal of the land could be imposed. Swanton Village v. Town of Highgate, 131 Vt. 318, 305 A.2d 586, 1973 Vt. LEXIS 309 (1973).

Municipality requirement.

The defendant’s argument that it is entitled to tax the plaintiff under § 3659 of this title fails because the plaintiff is not a municipality as required under the statute and the defendant has failed to show any reason why the plaintiff should be considered a municipality. International Water Co. v. Town of Holland, 161 Vt. 584, 641 A.2d 347, 1993 Vt. LEXIS 180 (1993) (mem.).

Proof.

Where this section allowed a town to tax land within its boundaries and owned by another town and to levy, in lieu of a personal property tax, an additional tax of up to 75 percent of the property tax appraisal, taxing town did not have to show there was personal property on the premises when they were acquired. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 134 Vt. 325, 360 A.2d 882, 1976 Vt. LEXIS 666 (1976).

Purpose.

Purpose of additional tax in lieu of a personal property tax in this section is to compensate the situs not only for personal property actually lost to taxation, but for the loss of future taxable personalty plus inability to tax improvements. City of Montpelier v. Town of Berlin, 143 Vt. 291, 465 A.2d 1104, 1983 Vt. LEXIS 518 (1983).

This section allowing a town to tax real property of another town within the taxing town’s boundaries, and providing that an additional levy not to exceed 75 percent of the appraisal of the land may be made in lieu of a personal property tax, is not a tax in lieu of one on personal property existing at the time of acquisition of land and therefore removed from taxing power, but rather, its purpose is to compensate the taxing town for personal property lost to taxation and for the loss of future taxable personalty and for inability to tax improvements. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 134 Vt. 325, 360 A.2d 882, 1976 Vt. LEXIS 666 (1976).

—Methods.

Whether this section or the fair-market value rule governed with respect to property of municipal corporation situated outside of its territorial limits was a question of law, and since this section requires equality of taxation, the statutory tax appeals route was inappropriate to solve questions whether appraisal was too high and after-acquired improvements were taxable, and the matter was for the courts to decide. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 129 Vt. 1, 270 A.2d 584, 1970 Vt. LEXIS 194 (1970).

Subsequent improvements.

This section exempts improvements made after the acquisition of the land, not just improvements made after the effective date of the statute. Swanton Village v. Town of Highgate, 131 Vt. 318, 305 A.2d 586, 1973 Vt. LEXIS 309 (1973).

Time of levy.

In appeal from property tax assessments, that town did not make an additional assessment equal to 75 percent of the appraisal, which this section allowed in lieu of personal property tax, until after trial, did not prevent the town from collecting the tax. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 134 Vt. 325, 360 A.2d 882, 1976 Vt. LEXIS 666 (1976).

Valuation.

Under this section providing that value fixed upon property for tax appraisal purposes be the same as that fixed upon similar property, the properties must be similar or at least substantially similar, and where similar or substantially similar property cannot be found, property more similar than other property may not be used and this section cannot be applied. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 134 Vt. 325, 360 A.2d 882, 1976 Vt. LEXIS 666 (1976).

Cited.

Cited in Village of Lyndonville v. Town of Burke, 146 Vt. 435, 505 A.2d 1207, 1985 Vt. LEXIS 392 (1985).

Notes to Opinions

Subsequent improvements.

Permanent buildings constructed on airport land after purchase thereof by municipality, if such buildings are municipally owned, are exempt from taxation under this section. 1956-58 Vt. Op. Att'y Gen. 220.

§ 3660. Repealed. 1997 (Adj. Sess.), No. 71, § 22, eff. Jan. 1, 1998.

History

Former § 3660. Former § 3660, relating to appraisal of lands in gores or unorganized towns held by Agency of Natural Resources, was derived from 1995, No. 178 (Adj. Sess.), § 53; amended 1997, No. 60 , § 54.

A previous § 3660, relating to State lands, was derived from 1979, No. 203 (Adj. Sess.), § 4, amended by 1983, No. 172 (Adj. Sess.); 1987, No. 76 , § 18, and previously repealed by 1995, No. 63 , § 48c.

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.

History

Source.

V.S. 1947, § 673. 1943, No. 14 , § 1. 1941, No. 14 , § 1. 1935, No. 22 , § 1. P.L. § 611. G.L. § 703. P.S. § 510. V.S. § 374. 1882, No. 7 , § 1. R.L. § 281. 1863, No. 18 , § 1. G.S. § 83, § 13. 1855, No. 43 , § 12. 1841, No. 16 , § 9. 1825, No. 9 , § 3.

ANNOTATIONS

Apportionment between jurisdictions.

Apportionment of personal property taxes between jurisdictions was not required simply because excursion vessel operated out of one city but was stored for winter in another, where case did not involve a dispute between jurisdictions, owner of vessel did not argue in the alternative for apportionment, and apportionment was not required by statute; nor was there any requirement that benefits conferred by taxing jurisdiction be received over entire period for which tax was levied. Mesa Leasing Ltd. v. City of Burlington, 169 Vt. 93, 730 A.2d 1102, 1999 Vt. LEXIS 26 (1999).

Damages.

Where owner of chattel distrained for taxes procures it to be bid off at auction sale for himself, and appropriates it to his own use, he is entitled to recover, in action against collector for wrongful taking, only what he was compelled to pay for chattel, as that is extent of injury he sustained in consequence of the act of defendant. Hurlburt v. Green, 41 Vt. 490, 1868 Vt. LEXIS 144 (1868).

Liability of listers.

Listers were liable for setting property of plaintiff in list against him in town where he did not live, and where the property was not liable to be put in list, plaintiff having been compelled to pay taxes in consequence of such enlistment. Henry v. Edson, 2 Vt. 499, 1830 Vt. LEXIS 19 (1830).

Location of property.

City had authority to impose personal property tax on excursion vessel even in years that vessel was in a different jurisdiction for winter storage and was not physically located in city on April 1; vessel’s consistent and continuous contacts with taxing city for a significant portion of each year in question, during which time vessel’s owners benefited from city services and protection, were sufficient to create a tax situs there. Mesa Leasing Ltd. v. City of Burlington, 169 Vt. 93, 730 A.2d 1102, 1999 Vt. LEXIS 26 (1999).

Property taxable.

If intention to make ski lift a permanent accession is doubtful, it remains a chattel. Sherburne Corporation v. Town of Sherburne, 124 Vt. 481, 207 A.2d 125, 1965 Vt. LEXIS 276 (1965).

Corporation, especially an eleemosynary corporation, cannot be assessed and set in the list and taxed for money on hand or debts due to it. Congregational Soc'y v. Ashley, 10 Vt. 241, 1838 Vt. LEXIS 47 (1838).

Residence.

Action of listers in determining residence of a person for purposes of taxation is not conclusive, but fact of such residence may be inquired into in suit calling in question validity of tax. Preston v. King, 61 Vt. 606, 17 A. 790, 1889 Vt. LEXIS 93 (1889).

In an action against tax collector, where plaintiff’s residence is material, evidence is admissible to prove that plaintiff registered and voted in another state the same year of the assessment complained of, if coupled with offer to prove that laws of such state required residence there of one year before voting. Fulham v. Howe, 60 Vt. 351, 14 A. 652, 1888 Vt. LEXIS 154 (1888).

Question of plaintiff’s domicile on first of April being one upon which parties were at issue in an action of trespass against a tax collector, it was competent for defendant to prove that plaintiff returned no list and was not taxed in such other town that year. Hurlburt v. Green, 42 Vt. 316, 1869 Vt. LEXIS 83 (1869).

Plaintiff who, then residing in Randolph, hired a farm in Braintree, with the intention of residing thereon and who, the latter part of March, 1855, removed his wood and furniture from Randolph to this farm, and finding previous occupant not prepared to leave it until the third of April, left Randolph on the last day of March with the remainder of his personal property, and stopped with a friend in Brookfield until the fourth of April, when he moved onto the Braintree farm and resided there during the remainder of the year, was so far a resident of Braintree on the first of April, 1855, as to be liable to assessment and taxation in that town for that year. Mann v. Clark, 33 Vt. 55, 1860 Vt. LEXIS 59 (1860).

Personal property, not in possession of tenant, is to be taxed in town in which owner resides, and it makes no difference that he consented that the property should be set to him in the list of a town where he did not reside, or that he gave to the listers in such town a list specifying the particular property thereon. Blood v. Sayre, 17 Vt. 609, 1843 Vt. LEXIS 147 (1843).

Title.

Taxing authority may adopt description of state of title to property used by parties to transaction, though lacking in full substance. Sherburne Corporation v. Town of Sherburne, 124 Vt. 481, 207 A.2d 125, 1965 Vt. LEXIS 276 (1965).

Trade fixtures.

The basic ingredient necessary to make a ski lift a trade fixture is the right to remove such lift at the expiration of the lease. Sherburne Corporation v. Town of Sherburne, 124 Vt. 481, 207 A.2d 125, 1965 Vt. LEXIS 276 (1965).

Cited.

Cited in In re Christie, 139 B.R. 612, 1992 Bankr. LEXIS 615 (Bankr. D. Vt. 1992).

Notes to Opinions

Goods in transit.

Under the United States Constitution’s Commerce Clause, states and municipalities may not burden interstate commerce by taxing goods in transit, and if liquor shipped from out of state is kept in Vermont pending some distribution yet to be determined, the right to control its ultimate destination remaining in the distributor, it is subject to taxation under this section by the municipality in which it is located, but if it is merely held at a warehouse as a temporary interruption in its transport to a known destination or consignee in or out of state it is not taxable. 1972-74 Vt. Op. Att'y Gen. 201.

§ 3692. Taxation of boats, outboard motors, and trailer coaches.

  1. 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.
  2. 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 674. P.L. § 612. G.L. § 704. 1910, No. 36 , § 1. P.S. § 511. 1906, No. 21 , § 1.

Amendments

—1983 (Adj. Sess.) Designated existing provisions of section as subsec. (a), substituted “trailer coaches as defined by section 4 of Title 23” for “travel trailers” preceding “registered” and inserted “except as provided in subsection (b)” preceding “canoes” in that subsection, and added subsec. (b).

—1971. Added provisions relating to snowmobiles and travel trailers.

—1961. Changed section to tax specified boats and motors only when held as stock in trade, manufacturer’s inventory, or when used for income producing purposes; omitted provision for lien; and changed provision for setting them in the list.

—1959. Made section applicable to sailboats, outboard motors or a combination, raised valuation from $100 to $500, and added provision relating to lien.

ANNOTATIONS

Application.

City had authority to impose personal property tax on excursion vessel even in years that vessel was in a different jurisdiction for winter storage and was not physically located in city on April 1; vessel’s consistent and continuous contacts with taxing city for a significant portion of each year in question, during which time vessel’s owners benefited from city services and protection, were sufficient to create a tax situs there. Mesa Leasing Ltd. v. City of Burlington, 169 Vt. 93, 730 A.2d 1102, 1999 Vt. LEXIS 26 (1999).

Cited.

Cited in Rousse v. Town of Isle La Motte, 144 Vt. 416, 479 A.2d 132, 1984 Vt. LEXIS 597 (1984).

Subchapter 4. State Payment in Lieu of Property Taxes

History

Former §§ 3701-3707. Former sections 3701-3707, relating to state payment in lieu of property taxes, were derived from 1995, No. 63 , § 48a; and amended by 1995, No. 178 (Adj. Sess.), § 332, and were terminated by 1995, No. 63 , § 48h, eff. June 30, 1996.

Contingent provisions for state payment in lieu of property taxes. 1997, No. 60 , § 56, provided: “Any payment made as a state payment in lieu of property taxes to any municipality under subchapter 4 of chapter 123 of Title 32 shall be used by the municipality solely for the purpose of reducing municipal property tax assessments in that year, unless in adopting its budget for that year the municipality has or shall have anticipated that type of payment from the state.”

CROSS REFERENCES

Administrative procedure, see 3 V.S.A. chapter 25.

Local option taxes, see 24 V.S.A. § 138 .

Assessment and collection of taxes, see chapter 133 of this title.

§ 3701. Definitions.

As used in this subchapter:

  1. “State-owned property” means
    1. 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 thereto; and
    2. 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.

HISTORY: 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.

History

Amendments

—2005 (Adj. Sess.). Subdiv. (1)(A): Added “which are tax-exempt under section 2178 of Title 16” following “Vermont state colleges” and made a grammatical change.

—1999. Deleted “lands held by the agency of natural resources, and” following “state-owned” in subdiv. (1)(B) and also following “fair market value of” in subdiv. (3), and substituted “in which a tax is assessed” for “which assessed property taxes” in subdiv. (6).

—1997 (Adj. Sess.). Inserted “or other entity” preceding “for insuring the building” in subdiv. (2) and inserted “or section 1309 of Title 24” following “section 2664 of Title 17” in subdiv. (5).

§ 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.

HISTORY: Added 1997, No. 60 , § 53.

§ 3703. Grant formula.

  1. 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.
  2. [Repealed.]
  3. 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.
  4. [Repealed.]
  5. 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.

HISTORY: Added 1997, No. 60 , § 53; amended 1997, No. 71 (Adj. Sess.), § 26, eff. July 1, 1997; 1999, No. 1 , § 106b, eff. March 31, 1999.

History

Amendments

—1999. Subsec. (d): Repealed.

—1997 (Adj. Sess.). Subsec. (b): Repealed the subsection which required all elements of the formula to be for the same tax year.

§ 3704. Determination of assessed values; appeal.

  1. 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.
  2. 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.

HISTORY: Added 1997, No. 60 , § 53.

§ 3705. Adjusted municipal grand list and adjusted municipal tax rate.

  1. 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 .
  2. 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.

HISTORY: Added 1997, No. 60 , § 53; amended 1997, No. 71 (Adj. Sess.), § 25, eff. July 1, 1997.

History

Revision note—

In subdiv. (a)(3), substituted “section 2664” for “subsection 2664(a)” to correct an error in the reference.

Amendments

—1997 (Adj. Sess.). Subdivs. (a)(1) and (2): Substituted “prior” for “current”.

§ 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.

HISTORY: 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.

HISTORY: 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.

  1. 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.
  2. The State shall annually pay to each municipality a payment in lieu of taxes (PILOT) that shall be the base payment as set forth herein, for all ANR land, excluding buildings or other improvements thereon, as of April 1 of the current year.
  3. 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.
  4. 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.
  5. 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.
  6. 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.

HISTORY: 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.

History

Amendments

—2019 (Adj. Sess.). Subsec. (d): In the first sentence, substituted “2023” for “2022” and “not” for “no” in two places.

—2015 (Adj. Sess.). Section amended generally.

—2015. Subsec. (a): Amended generally.

—2005. Added new subsec. (d) and redesignated former subsec. (d) as subsec. (e).

Repeal of amendments to subsection (a) by 2015, No. 58 , § E.701.1. 2015, No. 172 (Adj. Sess.), § E.701.2 provided that the amendments made to this section by 2015, No. 58 , § E.701.1 are repealed.

Payment in lieu of taxes for Agency of Natural Resources lands in fiscal years 2017, 2018, 2019, 2020, and 2021. 2015, No. 58 , § E.701.2 as amended by 2015, No. 172 (Adj. Sess.), § E.701.1 provides: “(a) Notwithstanding the requirements of 32 V.S.A. § 3708(c)(1) to the contrary, for purposes of payment in lieu of taxes (PILOT) for lands acquired by the Agency of Natural Resources before April 1, 2016, the State shall pay to each municipality:

“(1) in fiscal year 2017, the PILOT amount received by the municipality in fiscal year 2016 plus or minus one-fourth of the difference between the PILOT amount the municipality received in fiscal year 2016 and the PILOT amount the municipality would receive under 32 V.S.A. § 3708(c)(1) ; and

“(2) in fiscal year 2018, the PILOT amount received by the municipality in fiscal year 2016 plus or minus one-half of the difference between the PILOT amount the municipality received in fiscal year 2016 and the PILOT amount the municipality would receive under 32 V.S.A. § 3708(c)(1) ; and

“(3) in fiscal year 2019, the PILOT amount received by the municipality in fiscal year 2016 plus or minus three-fourths of the difference between the PILOT amount the municipality received in fiscal year 2016 and the PILOT amount the municipality would receive under 32 V.S.A. § 3708(c)(1) .

“(b) If the Agency of Natural Resources acquires land in a municipality on or after April 1, 2016, the State shall make a PILOT payment on the newly acquired land to the municipality under 32 V.S.A. § 3708(c)(2) , and the newly acquired land shall not be subject to this section.

“(c) If the PILOT amount to be received by a municipality under 32 V.S.A. § 3708(c)(1) , as of April 1, 2016, is::

“(1) more than $25,000 less than that municipality’s PILOT payment in fiscal year 2016, the municipality will receive an additional payment of $3,000 in fiscal years 2017, 2018, 2019, 2020, and 2021;

“(2) between $25,000 and $20,000 less than that municipality’s PILOT payment in fiscal year 2016, the municipality will receive an additional payment of $2,500 in fiscal years 2017, 2018, 2019, 2020, and 2021;

“(3) between $19,999 and $15,000 less than that municipality’s PILOT payment in fiscal year 2016, the municipality will receive an additional payment of $2,000 in fiscal years 2017, 2018, 2019, 2020, and 2021;

“(4) between $14,999 and $10,000 less than that municipality’s PILOT payment in fiscal year 2016, the municipality will receive an additional payment of $1,500 in fiscal years 2017, 2018, 2019, 2020, and 2021;

“(5) between $9,999 and $7,500 less than that municipality’s PILOT payment in fiscal year 2016, the municipality will receive an additional payment of $1,000 in fiscal years 2017, 2018, 2019, 2020, and 2021;

“(6) between $7,499 and $5,000 less than that municipality’s PILOT payment in fiscal year 2016, the municipality will receive an additional payment of $500 in fiscal years 2017, 2018, 2019, 2020, and 2021;

“(7) more than $25,000 more than that municipality’s PILOT payment in fiscal year 2016, the municipality will receive $3,000 less in fiscal years 2017, 2018, 2019, 2020, and 2021;

“(8) between $25,000 and $20,000 more than that municipality’s PILOT payment in fiscal year 2016, the municipality will receive $2,500 less in fiscal years 2017, 2018, 2019, 2020, and 2021;

“(9) between $19,999 and $15,000 more than that municipality’s PILOT payment in fiscal year 2016, the municipality will receive $2,000 less in fiscal years 2017, 2018, 2019, 2020, and 2021;

“(10) between $14,999 and $10,000 more than that municipality’s PILOT payment in fiscal year 2016, the municipality will receive $1,500 less in fiscal years 2017, 2018, 2019, 2020, and 2021;

“(11) between $9,999 and $7,500 more than that municipality’s PILOT payment in fiscal year 2016, the municipality will receive $1,000 less in fiscal years 2017, 2018, 2019, 2020, and 2021;

“(12) between $7,499 and $5,000 more than that municipality’s PILOT payment in fiscal year 2016, the municipality will receive $500 less in fiscal years 2017, 2018, 2019, 2020, and 2021.”

ANNOTATIONS

Appeal from appraisal.

Although this section authorizes the Superior Court to review decisions of the Director of Property Valuation and Review by appeal, it does not authorize de novo review. Town of Victory v. State, 2004 VT 110, 177 Vt. 383, 865 A.2d 373, 2004 Vt. LEXIS 312 (2004).

The Legislature did not intend that appeals under this section be governed by the same standard and procedures that it established for the statute on property tax appeals, 32 V.S.A. § 4467 . Town of Victory v. State, 2004 VT 110, 177 Vt. 383, 865 A.2d 373, 2004 Vt. LEXIS 312 (2004).

Statute of limitations.

Trial court did not err in its determination that equitable estoppel was not available to a town to toll the 21-day statute of limitations for appraisals of land in the payment in lieu of taxes (PILOT) program. Town of Victory v. State, 174 Vt. 539, 814 A.2d 369, 2002 Vt. LEXIS 251 (2002) (mem.).

Cited.

Cited in Town of Victory v. State, 174 Vt. 539, 814 A.2d 369, 2002 Vt. LEXIS 251 (2002) (mem.).

Subchapter 4B. Pilot Special Fund

§ 3709. PILOT Special Fund.

  1. There is hereby established a PILOT Special Fund consisting of local option tax revenues paid to the 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, subchapter 4 of this title, and for any additional State payments in lieu of taxes for correctional facilities and to the City of Montpelier. The Commissioner of Finance and Management may draw warrants for disbursements from this Fund in anticipation of receipts.
  2. 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.

HISTORY: Added 2005, No. 215 (Adj. Sess.), § 287; amended 2007, No. 192 (Adj. Sess.), § 6.011.1, eff. June 7, 2008.

History

Amendments

—2007 (Adj. Sess.). Subsec. (a): Substituted “and for any additional state payments in lieu of taxes for correctional facilities and to the City of Montpelier” for “state payment in lieu of property taxes” at the end of the third sentence.

Subsec. (b): Substituted “then” for “payments” following “under subchapter 4 of this chapter” and inserted “payments determined under sections 3703 of this subchapter” preceding “shall be reduced proportionately”.

Payments in lieu of taxes. 2019, No. 120 (Adj. Sess.), § A.15 provides: “(a) This appropriation is for State payments in lieu of property taxes under 32 V.S.A. chapter 123, subchapter 4, and the payments shall be calculated in addition to and without regard to the appropriations for PILOT for Montpelier and for correctional facilities elsewhere in this act. Payments in lieu of taxes under this section shall be paid from the PILOT Special Fund under 32 V.S.A. § 3709 .”

Payments in lieu of taxes—Montpelier. 2019, No. 120 (Adj. Sess.), § A.16 provides: “(a) Payments in lieu of taxes under this section shall be paid from the PILOT Special Fund under 32 V.S.A. § 3709 .”

Payments in lieu of taxes—correctional facilities. 2019, No. 120 (Adj. Sess.), § A.17 provides: “(a) Payments in lieu of taxes under this section shall be paid from the PILOT Special Fund under 32 V.S.A. § 3709 .”

Payments in lieu of taxes. 2021, No. 74 , § E.142(a) provides: “The appropriation in Sec. B.142 is for State payments in lieu of property taxes under 32 V.S.A. chapter 123, subchapter 4, and the payments shall be calculated in addition to and without regard to the appropriations for PILOT for Montpelier and for correctional facilities elsewhere in this act. Payments in lieu of taxes under this section shall be paid from the PILOT Special Fund under 32 V.S.A. § 3709 .”

Payments in lieu of taxes—Montpelier. 2021, No. 74 , § E.143(a) provides: “Payments in lieu of taxes under Sec. B.143 shall be paid from the PILOT Special Fund under 32 V.S.A. § 3709 .”

Payments in lieu of taxes—correctional facilities. 2021, No. 74 , § E.144(a) provides: “Payments in lieu of taxes under Sec. B.144 shall be paid from the PILOT Special Fund under 32 V.S.A. § 3709 .”

Chapter 124. Agricultural and Forest Lands

CROSS REFERENCES

Standing timber, see § 3606 of this title.

Orchard lands, see § 3607 of this title.

Barns, silos, and other farm structures, see § 3607a of this title.

ANNOTATIONS

Cited.

Cited in Scott Construction, Inc. v. City of Newport Board of Civil Authority, 165 Vt. 232, 683 A.2d 382, 1996 Vt. LEXIS 70 (1996).

Law Reviews —

For note, “Changing Vermont’s Current Use Appraisal Program to Provide Property Tax Incentives for Conservation Easements,” see 17 Vt. L. Rev. 165 (1992).

For note relating to preservation of farmlands, see 11 Vt. L. Rev. 630 (1986).

Subchapter 1. Agricultural and Managed Forest Land Use Value Program

History

Amendments

—1987 (Adj. Sess.) 1987, No. 200 (Adj. Sess.), § 53, eff. May 19, 1988, designated the existing provisions of this chapter comprising §§ 3751-3763 as subchapter 1 and added the subchapter heading.

Current Use Advisory Board; use value calculation methodology. 2009, No. 160 (Adj. Sess.), § 13 provides: “The Current Use Advisory Board established pursuant to 32 V.S.A. § 3753 has provided to the General Assembly a document entitled ‘Methodology and Criteria used in the Determination of Vermont’s Use Values for the Current Use Program,” dated April 12, 2010. The General Assembly hereby deems that the document has the force and effect of administrative rules adopted pursuant to chapter 25 of Title 3 of the Vermont Statutes Annotated, and any proposed changes to the methodology or criteria as set forth in the document shall be subject to all of the provisions of chapter 25 of Title 3.”

§ 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 and the rural character of Vermont.

HISTORY: Added 2013, No. 200 (Adj. Sess.), § 14.

§ 3751. Statement of purpose.

The purpose of this subchapter is to encourage and assist the maintenance of Vermont’s productive agricultural and forestland; to encourage and assist in their conservation and preservation for future productive use and for the protection of natural ecological systems; 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; 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.

HISTORY: Added 1977, No. 236 (Adj. Sess.), § 1.

ANNOTATIONS

Standard of review.

Case involving the construction of the current use statute did not call for the substantial deference due where the administrative agency was acting within a narrow area of technical expertise or where the Legislature had given the administrative agency wide discretion to establish a methodology for implementing the statute in question. While the court owed deference to the Director of the Vermont Department of Taxes’ Division of Property Valuation and Review, that deference was tempered by the court’s paramount concern of construing the statute consistently with its explicitly stated purposes. Mollica v. Div. of Prop. Valuation & Review, 2008 VT 60, 184 Vt. 83, 955 A.2d 1171, 2008 Vt. LEXIS 54 (2008).

§ 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:
    1. it is owned by a farmer and is part of the overall farm unit; or
    2. it is used by a farmer as part of his or her farming operation under written lease for at least three years; or
    3. 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:
      1. $2,000.00 for parcels of up to 25 acres; and
      2. $75.00 per acre for each acre over 25, with the total income required not to exceed $5,000.00.
      3. 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.
    1. “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. (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.
    2. “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.
    3. “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.

      (E) The term “development” shall 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.

  5. “Director” means the Director of the Division of Property Valuation and Review created by 3 V.S.A. § 2289 .
  6. “Farmer” means a person:
    1. 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
      1. 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; (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;
      2. 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
      3. who produces on the farm a minimum of 75 percent of the farm crops processed in the farm facility.
    2. The Agency of Agriculture, Food and Markets shall assist the Director in making determinations of eligibility pursuant to subdivision (B) of this subdivision (7).
  7. “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.
  8. “Managed forestland” means:
    1. 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 in accordance with minimum acceptable standards for forest management. Such land may include eligible ecologically significant treatment areas in accordance with minimum acceptable standards for forest management and as approved by the Commissioner; or
    2. any land, exclusive of any house site, that is:
      1. certified under 10 V.S.A. § 6306(b) ;
      2. 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
      3. under active conservation management in accord with standards established by the Commissioner of Forests, Parks and Recreation.
  9. “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.
  10. “Person” means any individual, firm, corporation, partnership, or other form of organization or group of individuals.
  11. “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 agriculture 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.
  12. “Minimum acceptable standards for forest management” refer to certain standards established by the Commissioner of Forests, Parks and Recreation.
  13. “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) .
  14. “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.

    (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.

HISTORY: 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.

History

References in text.

9 V.S.A. § 4469 , referred to in subdiv. (14), was repealed by 1999, No. 26 , § 6, effective February 15, 2003. For present provisions, see 9 V.S.A. § 4469 a .

Revision note—

Substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954” in accordance with Pub. L. No. 99-514, § 2, Oct. 22, 1986, 100 Stat. 2095.

In subdiv. (14), in the second sentence, substituted “ 9 V.S.A. § 4469 a ” for “ 9 V.S.A. § 4469 ” to correct an error in cross-reference.

Editor’s note—

The text of this section is based on the harmonization of two amendments. During the 2013 session, this section was amended twice, by Act Nos. 34 and 73, resulting in two versions of this section. In order to reflect all of the changes enacted by the Legislature during the 2013 session, the text of Act Nos. 34 and 73 was merged to arrive at a single version of this section. The changes that each of the amendments made are described in the amendment notes set out below.

Amendments

—2021. Subdiv. (5): Act No. 43 added the subdiv. (A)-(E) designations and added subdiv. (F).

Subdivs. (9)(B)(ii), (iii): Act No. 20 deleted “is” preceding “owned” and “under” at the beginning of the subdivisions.

—2019 (Adj. Sess.). Subdiv. (8): Amended generally by Act No. 158.

Subdiv. (10): Act No. 175 deleted “of record” following “who is the owner.”

—2019. Subdiv. (5): In the second sentence, inserted “ex-spouse in a divorce settlement,” and substituted “that qualify” for “which qualifies”.

Subdiv. (10): Substituted “is for a minimum of” for “exceeds” in the first sentence.

—2017. Subdiv. (1): Deleted “or to” following “livestock”; substituted “that” for “which” following “and”; and added the present second sentence.

Subdiv. (1)(C)(iii): Substituted “fruit-producing” for “fruit producing” preceding “trees”; substituted “that” for “which” following “vines”; and inserted commas after “cheese” and “land”.

Subdiv. (14): Substituted “that” for “which” following “improvements” in the first sentence; in the second sentence, inserted a comma following “dwelling”; and substituted “prior 12 months” for “preceding tax year” preceding “exclusively”.

—2015. Subdiv. (5): Act No. 64 added the fourth sentence.

Subdiv. (12): Act No. 57 deleted the last sentence.

—2013 (Adj. Sess.). Subdiv. (9)(A): Inserted “Such land may include eligible ecologically significant treatment areas in accordance with minimum acceptable standards for forest management and as approved by the Commissioner” following “for forest management”.

—2013. Act No. 34 made technical corrections.

Subdiv. (5): Act No. 73 repealed amendments by 2011 (Adj. Sess.). Act 143. § 41 [see 2011 (Adj. Sess.) amendment note below].

Subdiv. (10): Act No. 73 added “or the lessee under a perpetual lease as defined in 32 V.S.A. § 3610(a) provided the term of the lease exceeds 999 years exclusive of renewals” to the first sentence.

—2011 (Adj. Sess.). Subdiv. (5): Act 143, § 41 added the fourth and fifth sentences, and added “issuance of a wastewater system permit under 10 V.S.A. § 1973 ,” and “or wastewater system permit” in the last sentence.

Subdiv. (5): Act 143, § 45 added “during the remaining term of the plan” and “if the plan has expired” in the third sentence.

—2009 (Adj. Sess.) Subdiv. (5): Inserted “or transferor” following “transferee” in the second sentence.

—2007 (Adj. Sess.). Subdiv. (10): Deleted “provided that a municipality shall not be an owner for purposes of this subchapter” following “any land” in the first sentence.

—2005. Subdiv. (1)(C)(iii): Substituted “section” for “subdivision” preceding “the term” in the second sentence.

Subdiv. (7): Amended generally.

Subdiv. (14): Rewrote the former first sentence as the present first and second sentences and added the third sentence.

—2003. Subdiv. (15): Added.

—2003. Subdiv. (12): Substituted “zero” for “30” preceding “percent”.

Subdiv. (14): Amended generally.

—2001 (Adj. Sess.) Subdiv. (1)(C)(iii): Inserted “bushes or vines” following “fruit producing trees” in the introductory paragraph and rewrote the undesignated paragraph.

Subdiv. (5): At the end of the second sentence, added the language beginning “but if subdivision is solely the result of a transfer”.

—1999. Subdiv. (9)(B): Amended generally.

—1997. Subdiv. (5): Rewrote the third sentence and substituted “logging, forestry or conservation” for “logging or forestry” preceding “purposes” in the fourth sentence.

Subdiv. (9): Amended generally.

Subdiv. (12): Substituted “30 percent” for “50 percent” preceding “of fair market value” in the second sentence.

—1995 (Adj. Sess.) Subdiv. (12): Inserted “with respect to land” preceding “the price per acre” in the first sentence and added the second sentence.

Subdiv. (14): Added.

—1995. Subdiv. (5): Substituted “25” for “26” preceding “acres” in the second sentence.

—1987 (Adj. Sess.) Subdiv. (6): Substituted “section 2289” for “section 2287”.

—1987. Subdiv. (10): Amended generally.

—1983 (Adj. Sess.) Subdiv. (5): Inserted “or contrary to the minimum acceptable standards of forest management” following “title” in the third sentence.

Subdiv. (7): Substituted “a person” for “an individual” following “means”.

Subdiv. (9): Amended generally.

Subdiv. (13): Added.

—1981. Subdiv. (10): Added proviso that a municipality shall not be an owner for purposes of this chapter.

Effective date of 2003 amendment to subdiv. (14). 2003, No. 66 , § 326(d) provides that § 286a of that act, which amends subdiv. (14) of this section, shall take effect July 1, 2003 for property enrolled for April 1, 2004.

Retroactive effective date of amendment to subdiv. (5). 2011, No. 143 (Adj. Sess.), § 63(6) provides that § 41 of that act shall take effect retroactively on July 1, 2011, and shall apply only to wastewater permits issued after that date.

Applicability of 2003 amendment to subdiv. (12). 2003, No. 66 , § 326(c) provides that § 286 of that act, which amends subdiv. (12) of this section, shall apply to grand lists for April 1, 2003 and after.

Temporary provisions. 1981, No. 14 , § 2, eff. Jan. 1, 1981, provided: “Municipal property owners who were in the land use appraisal program for the property tax year beginning on April 1, 1980 shall not be subject to the land use change tax.”

Repeal of repeal of 1995, No. 178 (Adj. Sess.) amendments. 1995, No. 178 (Adj. Sess.), § 292c, provided for the repeal of § 286 of that act, which amended subdiv. (12) and added subdiv. (14), on June 30, 1997. However, pursuant to 1997, No. 60 , § 59, eff. June 26, 1997, 1995, No. 178 (Adj. Sess.), § 286 was not repealed on June 30, 1997.

Transition rule. 2001, No. 140 (Adj. Sess.), § 42 provides: “For subdivisions occurring between August 1, 1999 and the effective date of this act [June 21, 2002], and which otherwise satisfy the familial transfer conditions added to 32 V.S.A. § 3752(5) in Sec. 41 of this act, the use change tax shall not apply if the transferees have submitted all necessary forms for reenrollment of the parcel or parcels in the use value appraisal program within four months after the date of transfer.”

ANNOTATIONS

Nonfarming use.

Nonprofit corporation with the mission to rescue, rehabilitate, foster, and adopt out animals did not qualify as a farmer under the Use Value Appraisal Program, as it was not operated for gain or profit and was funded almost exclusively by donations, a large share of which came from the couple who were the corporation’s principals. Goodrum v. Vermont Dep't of Taxes, 2014 VT 128, 198 Vt. 131, 111 A.3d 1281, 2014 Vt. LEXIS 130 (2014).

Director of the Vermont Department of Taxes’ Division of Property Valuation and Review erred in determining that the current use statute compelled discontinuance of a cottage from the current use program. The cottage, which was used as a sales office and warming hut for the taxpayers’ Christmas tree farm during the Christmas season, was not a “development,” because it was used exclusively for farming uses during the entire, albeit short, selling season; nor could the occasional off-season use of the cottage as a rental property be considered the “subsequent commencement” of a nonfarming use so as to bring the property within the definition of “development.” Mollica v. Div. of Prop. Valuation & Review, 2008 VT 60, 184 Vt. 83, 955 A.2d 1171, 2008 Vt. LEXIS 54 (2008).

Term “subsequent commencement” does not imply an annual off-season use that has no impact on the exclusive seasonal use for farming; rather, it implies an abandonment of a farming use for a nonfarming use so as to trigger imposing a land use change tax. The record plainly demonstrated that the taxpayers, who used a cottage on their Christmas tree farm as a sales office and a warming hut during the Christmas season and rented it out occasionally during the off season, did not abandon the farming use of the building. Mollica v. Div. of Prop. Valuation & Review, 2008 VT 60, 184 Vt. 83, 955 A.2d 1171, 2008 Vt. LEXIS 54 (2008).

Legislature was undoubtedly aware of the seasonal nature of farming operations, and yet nothing in the current use statute compels discontinuance in the current use program of structures used exclusively for farming during the farming season, but occasionally for nonfarming purposes during the off-season. Mollica v. Div. of Prop. Valuation & Review, 2008 VT 60, 184 Vt. 83, 955 A.2d 1171, 2008 Vt. LEXIS 54 (2008).

§ 3753. Current Use Advisory Board; members; Chair.

  1. There is hereby established a Current Use Advisory Board.
  2. The membership of the Board shall consist of:
    1. The following persons or their designees:
      1. Commissioner of Taxes;
      2. Director of the Division of Property Valuation and Review;
      3. Secretary of Agriculture, Food and Markets;
      4. Commissioner of Forests, Parks and Recreation;
      5. [Repealed.]
      6. [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.
  3. 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.
  4. 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.
  5. 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.

HISTORY: 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.

History

Amendments

—2011 (Adj. Sess.). Subdiv. (b)(1)(E): Deleted.

—2003. Substituted “Secretary of the agency of agriculture, food and markets” for “Commissioner of the department of agriculture, food and markets” in subdiv. (b)(1)(C).

—1997. Subdiv. (b)(1)(E): Inserted “natural resources” preceding “agriculture”.

Subdiv. (b)(1)(F): Repealed.

Subdiv. (b)(2): Substituted “eight” for “five” at the beginning of the first sentence, added “one shall be a representative of local government; one shall be a selectboard member; and one shall be a lister” following “techniques” in the second sentence and added the third sentence.

—1989 (Adj. Sess.) Subdiv. (b)(1)(C): Substituted “department of agriculture, food and markets” for “department of agriculture”.

—1987 (Adj. Sess.) Subsec. (d): Substituted “$50.00” for “$30.00” following “paid” in the first sentence.

—1987. Subdiv. (b)(1)(E): Inserted “and life sciences” following “agriculture”.

Subdiv. (b)(1)(F): Substituted “Dean” for “Director” preceding “of the school”.

—1985. Subsec. (e): Inserted “department of taxes of the” preceding “agency”.

§ 3754. Powers and duties of Board.

  1. 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 income-producing capability of agricultural and forestland.
  2. 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.
  3. 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.
  4. The Board may adopt rules under the authority granted to agencies by 3 V.S.A. §§ 801-808 to interpret and carry out the provisions of this subchapter.
  5. A member of the Board shall not vote on any issue on which he or she, or when applicable his or her agency, has a conflict of interest.

HISTORY: 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.

History

References in text.

3 V.S.A. §§ 802-805 , referred to in subsec. (d), were repealed by 1981, No. 82 , § 7(1)-(4).

Amendments

—2015 (Adj. Sess.). Subsec. (b): Substituted “on or before October 15” for “in August” following “Annually”.

—1987. Subsec. (a): Substituted “may” for “shall” following “values” and added “of agricultural and forest land” following “capability” in the second sentence.

Subsec. (b): Substituted “August” for “September” preceding “the board shall”.

—1983 (Adj. Sess.) Subsec. (b): Substituted “September” for “January” following “Annually in”.

Subsec. (c): Substituted “the” for “such recommended” preceding “valuations to all municipalities, towns and gores” in the second sentence and added “and the assessing officials shall appraise qualifying agricultural and managed forest land at these use values” thereafter.

Subsec. (e): Added.

§ 3755. Eligibility for use value appraisals.

  1. 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.
  2. Managed forestland shall be eligible for use value appraisal under this subchapter only if:
    1. The land is subject to a forest management plan, or 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:
      1. Is signed by the owner of the parcel.
      2. Complies with subdivision 3752(9) of this title.
      3. Is approved by the Department of Forests, Parks and Recreation.
      4. Provides for continued conservation 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.
      5. 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.
      6. 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 or 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.
  3. 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, that 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 that Department finds that the management of the tract is contrary to the conservation 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.
  4. After managed forestland has been removed from use value appraisal due to an adverse inspection report under subsection 3756(k) 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.
  5. Any applicant for appraisal under this subchapter bears the burden of proof as to his or her 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) .
  6. 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.
  7. 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.

HISTORY: 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.

History

References in text.

In subsec. (d), reference to “subsection 3756(k) of this title” may be to subsec. 3756(i) of this title, because subsec. 3756(k) of this title does not exist.

Revision note—

References to “departments of forest and parks” were changed to “department of forests, parks and recreation” in subsec. (b) pursuant to 3 V.S.A. § 2872 and for conformity with the first reference to that Department in this subsection.

Amendments

—2021. Subsec. (f): Inserted “To maintain eligibility for use value appraisal under this subchapter,” at the beginning of the first sentence, and added the second sentence.

Subsec. (g): Inserted “to be eligible or to maintain eligibility for use value appraisal under this subchapter” following “title” at the end of the subsection.

—2019 (Adj. Sess.). Subsec. (g): Added.

—2017 (Adj. Sess.). Subsecs. (b), (c), (d): Amended generally.

—2017. Subsec. (a): Substituted “that” for “which” following “buildings”; and substituted “rules” for “regulations” preceding “adopted”.

Subsec. (d): Deleted “a parcel of” preceding “managed”; inserted “under subdivision 3756(i)(1) of this title” following “report”; substituted “shall” for “will” following “appraisal”; and added a comma following “application”.

Subsec. (f): Substituted “November” for “September” following “before”.

—2015 (Adj. Sess.). Subsec. (f): Added.

—2013 (Adj. Sess.). Subdiv. (b)(3): Substituted “an initial or revised” for “a” following “misfortune form filing”, and inserted “, or a management plan update which is required to be filed on or before April 1 of the year in which the plan expires,” following “October 1”, “initial or revised” following “provided, however, no”, and “, and no management plan update shall be received later than one year after April 1 of the year the plan expires,” following “December 31”.

—2011 (Adj. Sess.). Subdiv. (b)(1): Amended generally.

—2011. Subsec. (e): Substituted “ 1 V.S.A. § 317(c)(6) ” for “subdivision 317(a)(6) of Title 1”.

—2007 (Adj. Sess.). Subdiv. (b)(3): Inserted “management activity” preceding “report”; deleted “of conformance with any management plan” following “report”; substituted “a management activity” for “an annual conformance” preceding “report” in three places.

Subsec. (c): Substituted “The” for “At intervals not to exceed five years, the” preceding “department” and “periodically review” for “audit” following “shall”; inserted “each year” preceding “review”; substituted “management activity” for “conformance” preceding “reports”, “that have been filed. At” for “for each parcel of managed forest land qualified for use value appraisal. Likewise” preceding “intervals”, “ten” for “five” preceding “years” and “parcel of managed forest land qualified for use value appraisal” for “tract” following “each”.

—2001 (Adj. Sess.) Subdiv. (b)(2): Substituted “a management report of whatever activity has occurred” for “an annual report of conformance with any conservation or forest management plan” at the beginning and substituted “the year following the year when the management activity occurred” for “each tax year” near the end.

Subdiv. (b)(3): Inserted “of the year following the year when the management activity occurred” following “February 1”, deleted “that” following “provided, however,” and made a minor punctuation change in the fourth sentence.

Subsec. (e): Added.

—1997. Section amended generally.

—1995 (Adj. Sess.) Subsec. (a): Act No. 178 deleted “and” preceding “managed forest land” and inserted “and farm buildings” thereafter.

Subsec. (b): Act No. 169 inserted “of forests, parks and recreation” following “department” in subdiv. (b)(2), and rewrote the third sentence as the third and fourth sentences, and added the fifth sentence.

—1993. Subsec. (b): Deleted “the next succeeding” preceding “ten years” in the first and second sentences and added the third sentence in subdiv. (1), inserted “forest management” preceding “plan” and made other minor changes in punctuation in subdiv. (2), and added the second and third sentences in subdiv. (3).

—1987. Subdiv. (b)(1): Act No. 76 substituted “agency of natural resources” for “agency of environmental conservation” in the first sentence.

Act No. 57 rewrote the first and second sentences.

Subdiv. (b)(2): Amended generally by Act No. 57.

Subdiv. (b)(3): Act No. 57 substituted “director” for “town clerk” preceding “an adverse” and deleted “of forests, parks and recreation” following “department” in the first sentence and added the second sentence.

Subsec. (c): Act No. 57 deleted the former third sentence and substituted “owner, the assessing officials” for “town clerk” preceding “and the director” in the present third sentence.

—1983 (Adj. Sess.). Subsec. (b): Deleted “the land is” following “only if”.

Subdiv. (b)(1): Amended generally.

Subdiv. (b)(2): Added “and” following “year”.

Subdiv. (b)(3): Added.

Subsec. (c): Added.

Subsec. (d): Added.

Effect of 1987, Act No. 57 amendment. 1987, No. 57 , § 10, eff. May 16, 1987 provides that appeals and procedures relating to the grand lists of 1988 shall be initiated and completed as though §§ 4, 5, and 7 of Act No. 57, which amended subsecs. (b) and (c) of this section, §§ 3756, and 3758 of this title, respectively, were not to have taken effect.

Repeal of repeal of 1995, No. 178 (Adj. Sess.) amendment. 1995, No. 178 (Adj. Sess.), § 292c provided for the repeal § 287 of that act, which amended subsec. (a) of this section, on June 30, 1997. However, pursuant to 1997, No. 60 , § 59, eff. June 26, 1997, 1995, No. 178 (Adj. Sess.), § 287 was not repealed on June 30, 1997.

ANNOTATIONS

Construction.

In an action by a town alleging that the State failed to comply with the requirements of this section and § 3756 of this title with respect to land in the current use program, because such requirements are stated in mandatory language, the trial court erred when it converted the State’s motion to dismiss into a motion for summary judgment and not allowing the town full discovery of facts essential to proving its case. Town of Victory v. State, 174 Vt. 539, 814 A.2d 369, 2002 Vt. LEXIS 251 (2002) (mem.).

Violations.

Violations by enrollees in the use value appraisal program were supported by evidence specified in an adverse inspection report that resulted in the finding of noncompliance with the forest management plan, withdrawal of the property from the program, and imposition of the land use change tax. Jones v. Dep't of Forests, Parks & Recreation, 2004 VT 49, 177 Vt. 81, 857 A.2d 271, 2004 Vt. LEXIS 165 (2004).

§ 3756. Qualification for use value appraisal.

  1. 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.
  2. [Repealed.]
  3. The Director shall notify the applicant no later than April 15 of his or her decision to classify or refusal to classify his or her property as eligible for use value appraisal by delivery of such notification to him or her in person or by mailing such notification to his or her last and usual place of abode. In the case of a refusal, the Director shall state the reasons therefor in the notification.
  4. 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.
  5. 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.
  6. 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, he or she shall thereafter notify the property owner of that determination by delivery of the notification to him or her in person or by mailing such notification to his or her last and usual place of abode.
  7. 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.
  8. By March 15, the Director shall mail 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 his or her 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 by July 5.
    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. (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.
      1. 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: (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:
        1. 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
        2. 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.
      2. The Director shall notify the owner that agricultural land or a farm building has been removed from use value appraisal by mailing notification of removal to the owner or operator’s last and usual place of abode. 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.
  9. 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.

HISTORY: 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.

History

Revision note

—2021. In subsec. (j), inserted “by” following “or disease, or” and preceding “natural disaster” for clarity.

—2009. In subsec. (e), deleted the word “is” before the words “has been received by the municipality” in the second sentence.

Editor’s note

—2015. The text of subsec. (i) is based on the harmonization of two amendments. During the 2015 session, subsec. (i) was amended twice, by Act Nos. 57 and 64, resulting in two versions of subsec. (i). In order to reflect all of the changes enacted by the Legislature during the 2015 session, the text of Act Nos. 57 and 64 was merged to arrive at a single version of subsec. (i). The changes that each of the amendments made are described in the amendment notes set out below.

Amendments

—2021. Subsec. (a): Deleted “approved by the Board and” following “form” in the first sentence, and substituted the first instance of “the farmer” for “he or she” in the last sentence.

Subsec. (g): Substituted “and provide” for “such”, deleted “such” following “adopt”, and substituted “ensure” for “assure” twice.

—2015. Subsec. (d): Act No. 57 amended generally.

Subsec. (i): Act No. 57 added “after providing 30 days’ notice to the owner” preceding “the Director” and inserted “required” preceding “management activity” in the first sentence.

Subsec. (i): Amended generally by Act No. 64.

—2013 (Adj. Sess.). Subsec. (e): Amended generally.

—2007 (Adj. Sess.). Subsec. (b): Deleted by Act No. 190.

Subsec. (e): Amended generally by Act No. 205.

Subsec. (f): Act No. 190 deleted “prior to March 15” following “Each year” and the last sentence.

Subsec. (h): Act No. 190 substituted “March 15” for “April 15” preceding “the director”.

Subsec. (i): Act No. 205 substituted “management activity report” for “conformance report” in the first sentence.

—2001 (Adj. Sess.) Subsec. (a): Added the second sentence.

—1997. Subsec. (e): Added the last sentence.

—1995 (Adj. Sess.) Section amended generally.

—1995. Subsec. (h): Substituted “section 3760(a)(3) of this title” for “subsection (a)(3) of this section” in the fourth sentence.

Repeal of repeal of 1995, No. 178 (Adj. Sess.) amendment. 1995, No. 178 (Adj. Sess.), § 292c, provided for the repeal of § 288 of that act, which amended this section, on June 30, 1997. However, pursuant to 1997, No. 60 , § 59, eff. June 26, 1997, 1995, No. 178 (Adj. Sess.), § 288 was not repealed on June 30, 1997.

ANNOTATIONS

Construction.

In an action by a town alleging that the State failed to comply with the requirements of § 3755 of this title and this section with respect to land in the current use program, because such requirements are stated in mandatory language, the trial court erred when it converted the State’s motion to dismiss into a motion for summary judgment and not allowing the town full discovery of facts essential to proving its case. Town of Victory v. State, 174 Vt. 539, 814 A.2d 369, 2002 Vt. LEXIS 251 (2002) (mem.).

Violations.

Violations by enrollees in the use value appraisal program were supported by evidence specified in an adverse inspection report that resulted in the finding of noncompliance with the forest management plan, withdrawal of the property from the program, and imposition of the land use change tax. Jones v. Dep't of Forests, Parks & Recreation, 2004 VT 49, 177 Vt. 81, 857 A.2d 271, 2004 Vt. LEXIS 165 (2004).

§ 3757. Land use change tax.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
      1. 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. (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.
      2. The landowner shall bear the recording cost.
      3. 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.
      4. 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.
      5. 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.
    1. 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:
      1. the land use change tax is paid;
      2. the land use change tax is abated pursuant to this section;
      3. the land use change tax is abated pursuant to subdivision 3201(5) of this title;
      4. 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
      5. the land is exempt from the levy of the land use change tax pursuant to this section and the land is developed.
    2. 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.
  6. 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.
  7. 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.
  8. 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.
    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: (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:
      1. land transferred is eligible for use value appraisal at the time of the transfer;
      2. 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
      3. 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.
  9. 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.
  10. 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.

HISTORY: 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.

History

Amendments

—2021. Subsec. (f): Added.

—2019. Subsec. (f): Repealed.

—2015 (Adj. Sess.). Subsec. (e): Substituted “the completed and signed form” for “payment” following “After receipt of” in the sixth sentence by Act No. 134.

Subsec. (f): Redesignated as subdiv. (f)(1) and amended generally by Act No. 171.

Subdiv. (j)(1): Amended generally by Act No. 171.

Subsec. ( l ): Added by Act No. 171.

—2015. Section 48 of Act No. 57, effective July 1, 2015 amended section generally.

Section 49 of Act No. 57, effective July 1, 2016, deleted “and who shall deposit the remainder of the tax paid into the General Fund” following “$2,000.00” in the second sentence and added the third sentence of subsec. (d).

—2013. Repealed amendments by 2011, No. 143 (Adj. Sess.), § 42.

—2011 (Adj. Sess.). Amended the first sentence in subsec. (a) generally; and added the conditional phrase at the end of the first sentence in subsec. (d).

—2011. Subsec. (a): Substituted “on the earliest of either” for “upon” following “tax” and inserted “, or two years after the issuance of all permits legally required by a municipality for any action constituting development, or two years after the issuance of a wastewater system and potable water supply permit under 10 V.S.A. § 1973 ” following “chapter”.

—2007 (Adj. Sess.). Subdiv. (e)(3): Act Nos. 190 and 205 added the proviso at the end.

—2005. Subsec. (a): Inserted “continuously” following “enrolled”.

Subsec. (g): Inserted “in the following cases” following “of this title”; added the subdiv. (g)(1) designation and added subdiv. (g)(2).

—2003. Subsec. (a): Deleted the former third sentence.

Subsecs. (c)-(k): Amended generally.

—2001 (Adj. Sess.) Subsec. (a): Added “or the tax shall be at the rate of 10 percent if the owner demonstrates to the satisfaction of the director that the parcel has been enrolled more than ten years” at the end of the second sentence, and added the third sentence.

—1999. Subsec. (g): Added the second and third sentences.

—1997. Subsec. (a): Substituted “20 percent” for “ten percent” following “rate of” in the second sentence.

—1995 (Adj. Sess.) Section amended generally.

—1995. Subsec. (e): Added the second sentence.

Effective date and applicability of subsec. (d). 2015, No. 57 , § 99(7) provides: “Sec. 49 (deposit of funds) [which amended subsection (d)] shall take effect on July 1, 2016 and apply to fiscal year 2017 and forward.”

Retroactive effective date of amendment to subsecs. (a) and (d). 2011, No. 143 (Adj. Sess.), § 63(6) provides that § 42 of that act shall take effect retroactively on July 1, 2011, and shall apply only to wastewater permits issued after that date.

Applicability of 2003 amendment. 2003, No. 68 , § 87(29) provides that § 86 of that act, relating to use change tax, shall apply to use change or development occurring on or after July 1, 2003.

Applicability of 2011 amendment. 2011, No. 45 , § 37(11) provides: “Sec. 13a [which amended this section] (use value appraisal permits) shall take effect on passage [May 24, 2011] and shall apply to any land permitted at the time of passage, or to any land permitted after passage.”

Repeal of repeal of 1995, No. 178 (Adj. Sess.) amendment. 1995, No. 178 (Adj. Sess.), § 292c, provided for the repeal of § 289 of that act, which amended this section, on June 30, 1997. However, pursuant to 1997, No. 60 , § 59, eff. June 26, 1997, 1995, No. 178 (Adj. Sess.), § 289 was not repealed on June 30, 1997.

Use value appraisal “easy-out”. 2015, No. 57 , § 53 provides: “(a) Notwithstanding any other provision of law, an owner of property enrolled in use value appraisal under 32 V.S.A. chapter 124 as of the passage of this act who elects to discontinue enrollment of the parcel, or a portion of a parcel, may be relieved of the first $50,000.00 of land use change tax imposed pursuant to 32 V.S.A. § 3757 ; provided that if the property owner does elect to discontinue enrollment and be relieved of the first $50,000.00 of land use change tax, the owner shall pay the full property tax, based upon the property’s full fair market value, for the 2015 assessment, and no State reimbursement shall be paid for that land. No property owner shall be relieved of more than $50,000.00 in land use change tax under this provision.

“(b) An election to discontinue enrollment under this provision is effective only if made in writing to the Director of Property Valuation and Review between July 1, 2015 and October 1, 2015; and an owner who elects to discontinue enrollment under this section or any successor owner may not reenroll the entire withdrawn parcel, or any portion less than the entire withdrawn parcel, in the succeeding five years.

“(c) The “easy-out” provided for in this section shall not be available for any land that has been developed, as that term is defined in 32 V.S.A. § 3752(5) , prior to July 1, 2015.”

Retroactive effective date of 2021 amendment. 2021, No. 73 , § 27(3) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. 9-10 (current use contingent lien and subordination fee) and 11 (tax expenditure; statutory purpose) shall take effect retroactively on July 1, 2020. Secs. 9-10 shall take effect retroactively to correct an erroneous technical revision to 2019 Acts and Resolves, No. 20, Sec. 109(a).”

ANNOTATIONS

Violations.

Elements of waiver and equitable estoppel were not established by enrollees in the use value appraisal program so as to preclude imposition of the land use change tax or to warrant equitable relief in the form of a retroactive withdrawal of the property from the program under expired 1996 opt-out legislation. Jones v. Dep't of Forests, Parks & Recreation, 2004 VT 49, 177 Vt. 81, 857 A.2d 271, 2004 Vt. LEXIS 165 (2004).

§ 3758. Appeals.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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) .

HISTORY: 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.

History

Amendments

—2015. Subsec. (e): Added.

—2013. Subsec. (a): Substituted “forestland” for “forest land” following “managed” and “to Superior Court in the county in which the property is located” for “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 subchapter 2 of chapter 131 of this title; and may appeal the decision of the assessing officials in the same manner as an appeal of a grand list valuation” following “from there”.

Subsec. (c): Inserted “of the Director” following “decision”; substituted “Commissioner within 30 days of the decision” for “commissioner” and “the county in which the property is located” for “the same manner and under the same procedures as an appeal from a decision of the board of civil authority, as set forth in subchapter 2 of chapter 131 of this title” following “Superior Court in”.

Subsec. (d): Act 13, substituted “Commissioner of the Department 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” for “commissioner of the department of forests, parks and recreation” following “appeal to the”.

Subsec. (d): Act 14 repealed amendments by 2011, No. 143 (Adj. Sess.), § 43.

—2011 (Adj. Sess.). Subsec. (d): Added “or certification to the director with respect to land for which a wastewater permit is issued” in the first sentence, and substituted “chapter 131, subchapter 2 of this title” for “subchapter 2 of chapter 131 of this title” at the end.

—2007 (Adj. Sess.). Subsec. (a): Substituted “a” for “an erroneous” preceding “use value appraisal” and inserted “within 30 days of the decision” following “director to the director”.

—1995 (Adj. Sess.) Section amended generally.

Effective date of 2013 amendments. 2013, No. 73 , § 60 provides: “Sec 13 (Use Value Program appeals) [which amended this section] shall take effect with respect to appeals taken after the passage of this act [June 5, 2013].”

Retroactive effective date of amendment to subsec. (d). 2011, No. 143 (Adj. Sess.), § 63(6) provides that § 43 of that act shall take effect retroactively on July 1, 2011, and shall apply only to wastewater permits issued after that date.

Repeal of repeal of 1995, No. 178 (Adj. Sess.) amendment. 1995, No. 178 (Adj. Sess.), § 292c, provided for the repeal of § 290 of that act, which amended this section, on June 30, 1997. However, pursuant to 1997, No. 60 , § 59, eff. June 26, 1997, 1995, No. 178 (Adj. Sess.), § 290 was not repealed on June 30, 1997.

§ 3759. Repealed. 1995, No. 178 (Adj. Sess.), § 291(1).

History

Former § 3759. Former § 3759, relating to Use Tax Reimbursement Fund, was derived from 1977, No. 236 (Adj. Sess.), § 1.

Repeal of 1995, No. 178 (Adj. Sess.) repealer. 1995, No. 178 (Adj. Sess.), § 292c, provided for the repeal of § 291 of that act, which repealed this section, on June 30, 1997. However, pursuant to 1997, No. 60 , § 59, eff. June 26, 1997, 1995, No. 178 (Adj. Sess.), § 291 was not repealed on June 30, 1997.

§ 3760. Payment to municipalities.

    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. (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.
  1. 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.
  2. 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.

HISTORY: 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.

History

Amendments

—2007 (Adj. Sess.). Subsec. (a): Designated the existing provisions of subsec. (a) as subdivs. (1)-(3), (5); added subdiv. (4); and substituted “municipality” for ‘town” throughout.

—2003. Subsec. (a): Added the subsec. designation.

Subsecs. (b) and (c): Added.

—1997. Section amended generally.

Repeal of 1995, No. 178 (Adj. Sess.) repealer. 1995, No. 178 (Adj. Sess.), § 292c, provided for the repeal of § 292a of that act, which enacted this section, on June 27, 1997. However, pursuant to 1997, No. 60 , § 59, eff. June 26, 1997, 1995, No. 178 (Adj. Sess.), § 292a was not repealed on June 30, 1997.

Repeal of 1995, No. 178 (Adj. Sess.) repealer. 1995, No. 178 (Adj. Sess.), § 292c, provided for the repeal of § 291(2) of that act, which repealed the version § 3760 of this title as originally added by 1977, No. 236 (Adj. Sess.), § 1, on June 30, 1997. However, pursuant to 1997, No. 60 , § 59, eff. June 26, 1997, 1995, No. 178 (Adj. Sess.), § 291(2) was not repealed on June 30, 1997.

Fiscal year 2000; current use reimbursement. 1999, No. 1 , § 106f, provides that notwithstanding any other provision of law, for purposes of calculating the current use reimbursement under § 3760 of this title for fiscal years 2000 and after, the fair market value of any parcel which was a part of land in excess of 100,000 acres listed to a single owner on the 1998 statewide equalized education property tax grand list, shall not be reduced on account of any conservation easement acquired in 1999 or 2000 under 10 V.S.A. chapter 155.

§ 3760a. Valuation audits.

  1. 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.
  2. 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.
  3. 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.
  4. 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.

HISTORY: 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.

HISTORY: Added 1985, No. 212 (Adj. Sess.), eff. June 2, 1986; amended 1995, No. 29 , § 5, eff. April 14, 1995.

History

Amendments

—1995. Substituted “June 1” for “April 1” in the first sentence.

§ 3762. Repealed. 1995, No. 178 (Adj. Sess.) § 291(3).

History

Former § 3762. Former § 3762, relating to farmland and use value appraisals, was derived from 1985, No. 262 (Adj. Sess.), § 8; and amended by 1987, No. 57 , § 8; 1987, No. 130 (Adj. Sess.), § 5 and No. 278 (Adj. Sess.), § 5.

§ 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.

HISTORY: Added 1985, No. 242 (Adj. Sess.), § 311; amended 1995, No. 169 (Adj. Sess.), § 4, eff. May 15, 1996.

History

Revision note—

This section was enacted as § 3761 and was redesignated in order to avoid conflict with preexisting § 3761, which was added by 1985, No. 212 (Adj. Sess.), eff. June 2, 1986, and § 3762, which was added by 1985, No. 262 (Adj. Sess.), § 8, eff. June 4, 1986.

Amendments

—1995 (Adj. Sess.) Deleted “and” preceding “the current use” and substituted “chapter and the amount reimbursed by the state to the town with respect to the eligible property” for “subchapter” preceding “shall be public”.

§ 3763a. Repealed. 2003, No. 70 (Adj. Sess.), § 35, eff. March. 1, 2004.

History

Former § 3763a. Former § 3763a, relating to reinstatement provision concerning withdrawals or discontinuances for years beginning April 1, 1994, was derived from 1995, No. 63 , § 38.

Subchapter 2. Working Farm Tax Abatement Program

History

Applicability of enactment.

1987, No. 200 (Adj. Sess.), § 56, eff. May 19, 1988, provides that § 54 of that act, which enacted this subchapter, consisting of §§ 3764-3775, shall affect property taxes assessed on and after April 1, 1989.

§ 3764. Repealed. 1995, No. 178 (Adj. Sess.), § 291(4).

History

Former § 3764. Former § 3764, relating to definitions, was derived from 1987, No. 200 (Adj. Sess.), § 54; and amended by 1995, No. 20 , § 1; No. 29, § 6; and 1995, No. 169 (Adj. Sess.), § 5.

§ 3765. Repealed. 1995, No. 178 (Adj. Sess.), § 291(5).

History

Former § 3765. Former § 3765, relating to limitations on tax abatement for land used for municipal services, was derived from 1987, No. 200 (Adj. Sess.), § 54.

§ 3766. Repealed. 1995, No. 178 (Adj. Sess.), § 291(6).

History

Former § 3766. Former § 3766, relating to enrollment in the working farm tax abatement program, was derived from 1987, No. 200 (Adj. Sess.), § 54.

§ 3767. Repealed. 1995, No. 178 (Adj. Sess.), § 291(7).

History

Former § 3767. Former § 3767, relating to agricultural lands planning criteria, was derived from 1987, No. 200 (Adj. Sess.), § 54.

§ 3768. Repealed. 1995, No. 178 (Adj. Sess.), § 291(8).

History

Former § 3768. Former § 3768, relating to the eligibility determination for enrolling property in the program, was derived from 1987, No. 200 (Adj. Sess.), § 54; and amended by 1995, No. 20 , § 2; No. 29, § 24.

§ 3769. Repealed. 1995, No. 178 (Adj. Sess.), § 291(9).

History

Former § 3769. Former § 3769, relating to assessment of property enrolled in the program, was derived from 1987, No. 200 (Adj. Sess.), § 54.

§ 3770. Repealed. 1995, No. 178 (Adj. Sess.), § 291(10).

History

Former § 3770. Former § 3770, relating to reimbursement payments to municipalities with property enrolled in the program, was derived from 1987, No. 200 (Adj. Sess.), § 54.

§ 3771. Repealed. 1995, No. 178 (Adj. Sess.), § 291(11).

History

Former § 3771. Former § 3771, relating to annual status reports of enrolled property, was derived from 1987, No. 200 (Adj. Sess.), § 54.

§ 3772. Repealed. 1995, No. 178 (Adj. Sess.), § 291(12).

History

Former § 3772. Former § 3772, relating to reasons for property to be removed from the program, was derived from 1987, No. 200 (Adj. Sess.), § 54.

§ 3773. Repealed. 1995, No. 178 (Adj. Sess.), § 291(13).

History

Former § 3773. Former § 3773, relating to notice of intent to convert enrolled property and board’s right to purchase property enrolled in the program, was derived from 1987, No. 200 (Adj. Sess.), § 54.

§ 3774. Repealed. 1995, No. 178 (Adj. Sess.), § 291(14).

History

Former § 3774. Former § 3774, relating to conversion of enrolled property to nonfarm use and repayment of benefits, was derived from 1987, No. 200 (Adj. Sess.), § 54; and amended by 1991, No. 67 , § 3; 1995, No. 29 , § 25; and 1995, No. 169 (Adj. Sess.), § 6.

§ 3775. Repealed. 1995, No. 178 (Adj. Sess.), § 291(15).

History

Former § 3775. Former § 3775, relating to release of rights to enrolled property after conversion to nonfarm use, was derived from 1987, No. 200 (Adj. Sess.), § 54.

§ 3776. Fee hunting prohibition.

  1. 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.
  2. 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.

HISTORY: Added 1997, No. 60 , § 68, eff. June 26, 1997.

§ 3777. Repealed. 2021, No. 73, § 10, effective July 1, 2020.

History

Former § 3777. Former § 3777, relating to lien subordination, was derived from 2013, No. 72 , § 14.

Retroactive effective date of repeal of section. 2021, No. 73 , § 27(3) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. 9-10 (current use contingent lien and subordination fee) and 11 (tax expenditure; statutory purpose) shall take effect retroactively on July 1, 2020. Secs. 9-10 shall take effect retroactively to correct an erroneous technical revision to 2019 Acts and Resolves, No. 20, Sec. 109(a).”

Chapter 125. Exemptions

CROSS REFERENCES

Military personnel penalty and interest exemption, see § 4609 of this title.

Subchapter 1. Exemptions

§ 3800. Statutory purposes. [Effective until July 1, 2022]

  1. 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.
  2. 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.
  3. The statutory purpose of the exemption for college fraternities and societies in subdivision 3802(5) of this title is to provide a tax benefit to college fraternities and societies.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. 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.
  14. 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.
  15. 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.

HISTORY: Added 2013, No. 200 (Adj. Sess.), § 15; amended 2021, No. 54 , § 17; 2021, No. 71 , § 13.

History

References in text.

Subdiv. 3802(5), referenced in subsec. (c), was repealed by 2013, No. 200 (Adj. Sess.), § 22(4), effective January 1, 2017.

Revision note

—2021. Subsec. (n), as added by 2021, No. 71 , § 13, was redesignated as subsec. (o) to avoid conflict with subsec. (n) as added by 2021, No. 54 , § 17. In subsec. (o), substituted reference to “3802(20)” for “3802(19)” because subdiv. (19), as added by 2021, No. 71 , § 12, was redesignated as subdiv. (20) to avoid conflict with subdiv. (19), as added by 2021, No. 54 , § 18.

Amendments

—2021. Subsec. (n): Added by Act 54.

Subsec. (o): Added by Act 71 as subsec. (n) and redesignated as subsec. (o).

§ 3800. Statutory purposes. [Effective July 1, 2022]

  1. 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.
  2. 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.
  3. The statutory purpose of the exemption for college fraternities and societies in subdivision 3802(5) of this title is to provide a tax benefit to college fraternities and societies.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. 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.
  14. 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.
  15. 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.
  16. 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.

HISTORY: Added 2013, No. 200 (Adj. Sess.), § 15; amended 2021, No. 54 , § 17; 2021, No. 71 , § 13; 2021 90, § 2, effective July 1, 2022.

§ 3801. [Repealed.]

History

Former § 3801. Former § 3801, relating to poll tax exemptions, was repealed pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

§ 3801 was derived from 1951, No. 15 , §§ 1,2; 1949, No. 13 ; V.S. 1947, § 648; 1947, No. 6 , § 1; 1943, No. 11 § 1; 1941, No. 11 , § 1; 1947, No. 10 , §§ 1, 2; 1937, No. 17 , §§ 1, 2; 1937, No. 16 , § 1; 1935, o. 20, § 1; P.L. § 589; G.L. § 683; 1910, No. 28 , § 28, § 2; P.S. §§ 489, 495; 1902 No. 10, § 1; V.S. §§ 357, 361; 1892, No. 11 , § 1; R.L. §§ 266, 269, 2810; 1880, No. 132 , § 2; 1845, No. 9 , § 1; and amended by 1961, No. 13 , No. 147, § 38; 1969 No. 5; 1973, No. 24 ; and 1977, No. 16 § 1.

§ 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.]
    1. 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, his or her 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: (11) (A) 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, his or her 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:
      1. A written application therefor.
      2. 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.
    2. The terms used in this subdivision shall have the same definitions as in 38 U.S.C. § 101, except that:
      1. the definitions shall apply as if federal law recognized a civil union or a civil marriage in the same manner as Vermont law;
      2. 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
      3. the age and marital status limits in 38 U.S.C. § 101(4)(A) shall not apply.
    3. An unremarried widow or widower of a previously qualified veteran shall be entitled to the exemption provided in this subdivision whether or not he or she 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 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.
  11. 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.
  12. , (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:

    1. operated on a net-metered system; or
    2. 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.

HISTORY: 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. 9 1 , 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.

History

Source.

1957, No. 15 . 1953, No. 124 . 1951, No. 16 . 1949, No. 15 . 1949, No. 14 . V.S. 1947, § 649. 1947, No. 8 , § 1. 1947, No. 7 , § 1. 1945, No. 9 , § 1. 1943, No. 12 , § 1. 1939, No. 12 , § 1. 1937, No. 18 , § 1. P.L. § 590. 1933, No. 157 , § 531. 1921, No. 32 , § 1. 1921, No. 31 , § 1. G.L. § 684. 1917, No. 37 , § 1. 1917, No. 36 , § 1. 1917, No. 254 , § 659, Subs. VI, XV. 1915, Nos. 28, 29. 1912, No. 37 , § 1. 1910, No. 33 , § 1. 1910, No. 31 , § 1. 1908, No. 99 , § 3. P.S. § 496, Subs. I, II, IV, VI, VII, IX-XI, XIII, XV. 1906, No. 27 , § 1. 1906, No. 24 , § 1. 1906, No. 23 , § 1. 1902, No. 17 , § 1. 1902, No. 11 , § 1. 1898, No. 13 , § 1. V.S. § 362, Subs. I, II, IV, VII, IX, X. R.L. § 275. R.L. § 270, Subs. I, III, VI, VIII, X. 1886, No. 4 , § 1. 1882, No. 4 , §§ 1, 2. 1880, No. 84 . 1876, No. 90 . 1865, No. 24 . 1864, No. 63 . G.S. 83, §§ 6, 7, 15, 44. 1860, No. 34 , § 3. 1855, No. 43 , §§ 5, 6, 14. 1850, No. 38 . 1842, No. 1 , §§ 7, 8. 1841, No. 16 , § 5. 1833, No. 25 . 1827, No. 12 . 1825, No. 9 , §§ 1, 2, 4. 1823, No. 21 . 1820, p. 4, § 3. 1819, p. 26. 1813, p. 129. 1802, p. 163. R. 1797, p. 566, 567, 569. 1791, Jan., p. 18, 19, §§ 2, 6. 1788, p. 24. 1787, p. 10, 11, 12, §§ 2, 5.

References in text.

The New England Interstate Water Pollution Control Compact, referred to in subdiv. (12), is codified at 10 V.S.A. chapter 47, subchapter 3.

Revision note

—2021. Subdiv. (19), as added by 2021, No. 71 , § 12, was redesignated as subdiv. (20) to avoid conflict with subdiv. (19) as added by 2021, No. 54 , § 18.

—2007. In subdiv. (11)(B)(iii), inserted “of Title 38 of the U.S. Code” following “section 101(4)(A)” for purposes of clarity.

Revision note—. Reference in subdiv. (8) to “section 4(13) and (26) of Title 23” was changed to “subdivision 4(19) and (31) of Title 23” to conform to renumbering by amendment of that section.

In subdiv. (2) changed “the members of stockholders of which” to “the members or stockholders of which” to correct manifest typographical error.

Amendments

—2021. Subdiv. (17): Act No. 54 substituted “comprising” for “composing” and substituted “that” for “which”.

Subdiv. (19): Added by Act No. 54.

Subdiv. (20): Added by Act No. 71 as subdiv. (19) and redesignated as subdiv. (20).

—2013 (Adj. Sess.). Subdiv. (5): Added the third sentence and subdiv. repealed effective January 1, 2017.

Subdiv. (17): Inserted “, except land,” following “Real and personal property” and substituted “which has a plant capacity of less than 50 kW and is either” for “, to the extent the plant is exempt from taxation under chapter 215 of this title” at the end.

Subdivs. (17)(A) and (17)(B): Added.

Subdiv. (18): Repealed effective January 1, 2015.

—2013. Subdiv. (11)(B)(i): Inserted “or a civil marriage” following “union”.

—2013. Subdiv. (18): Added.

—2011 (Adj. Sess.) Subdiv. (11)(A): Act No. 111 deleted “of any war or a veteran who has received an American Expeditionary Medal” following “fee simple by a veteran”.

Subdiv. (17): Added by Act No. 127.

—2011. Subdiv. (11)(A): Substituted “office of veterans affairs” for “listers”.

Subdiv. (11)(A)(ii): Substituted “office of veterans affairs” for “listers”.

—2009 (Spec. Sess.). Subdiv. (13): Repealed.

—2007 (Adj. Sess.). Subdiv. (10): Repealed.

—2005 (Adj. Sess.). Subdiv. (11)(B): Substituted “$40,000.00” for “$20,000.00” in the second sentence.

—2005. Subdiv. (11)(A)(ii): Added the third sentence.

—1999 (Adj. Sess.). Subdiv. (11): Designated the introductory paragraph as present subdiv. (A) and substituted “50 percent” for “fifty percent” in that subdivision and redesignated former subdivs. (A) and (B) as subdivs. (i) and (ii); and designated the former concluding paragraph as present subdiv. (B) and rewrote that subdivision.

—1999. Subdiv. (16): Added.

—1995 (Adj. Sess.) Subdiv. (11): Inserted “age and marital status” preceding “limits in section” and substituted “101(4)(A)” for “101(4)(A)(i), (ii) and (iii)” thereafter in the first sentence of the final undesignated paragraph.

—1995. Subdiv. (11): Added “and the limits in section 101(4)(A)(i), (ii) and (iii) shall not apply” following “administration” in the first sentence and substituted “subdivision” for “division” preceding “whether” in the second sentence of the second paragraph.

—1993 (Adj. Sess.) Subdiv. (11)(B): Inserted “military department or the” preceding “veterans”.

—1991 (Adj. Sess.) Subdiv. (11): Act No. 187 inserted “or a veteran who has received an American Expeditionary Medal” following “war” in the first sentence of the introductory paragraph.

Subdiv. (14): Repealed by Act No. 203.

—1991. Subdiv. (11): Added the third and fourth sentences of the second paragraph.

—1989. Subdiv. (11)(B): Inserted “previously qualified” preceding “veteran” and deleted “who was qualified at the time of death” thereafter in the second sentence of the second paragraph.

—1987 (Adj. Sess.) Subdiv. (11): Deleted “wartime” following “receiving”, preceding “death” and preceding “dependence” in the first sentence of the first paragraph and substituted “veteran who was qualified at the time of death” for “previously qualified veteran” following “widow or widower of a” in the second sentence of the second paragraph.

—1987. Subdiv. (12): Substituted “agency of natural resources” for “agency of environmental conservation” at the end of the subdivision.

—1981 (Adj. Sess.) Subdiv. (12): Substituted “secretary of the agency of environmental conservation” for “Vermont water resources board”.

—1981. Subdiv. (6): Exempted from property taxation, land and personal property owned by a YMCA or YWCA and used for organization’s purposes and deleted requirement that the organization maintain a free public reading room.

—1977 (Adj. Sess.) Subdiv. (1): No. 170 permitted a federal agency to make payments of taxes to towns in which it owns property.

Subdiv. (8): No. 172 added real and personal farm property constructed and used for the storage of manure and designed to avoid water pollution.

—1977. Subdiv. (11): No. 16, § 2, increased appraisal value to $10,000; inserted reference to “her spouse” and “widower”; and added exception at end of unmarked paragraph prohibiting denial of eligibility for exemption through use of definitions.

Subdiv. (11): No. 71, § 1, increased exemption to $10,000; expanded section to include her spouse and widower; included provisions for disability paid through any military department or the veterans administration; added exception which prohibited the construing of definitions in 38 U.S.C. § 101 to deny eligibility and provided unremarried widow or widowers shall be entitled to the exemption.

—1975 (Adj. Sess.) Subdiv. (15): Added.

—1975. Subdiv. (14): Added.

—1973. Subdiv. (8): No. 9 added reference to bees.

No. 91 added reference to shrubs and plants.

—1971. Subdiv. (8): Provided for complete exemption of farm animals.

—1967. Subdiv. (2): Added provision beginning “and real and personal . . .”.

—1966. Subdiv. (8): Added provisions relating to remaining in effect of percentage exemptions as specified or until amended or rescinded.

—1965. Subdiv. (8): Added to end of last sentence the words “and motorized highway-building equipment and road-making appliances as defined in section 4(13) and (26) of Title 23 required to be registered as motor vehicles”.

—1964. Subdiv. (8): Inserted “and when duly warned such percentage of other livestock and poultry as a town may vote at its annual meeting”.

—1963. Subdiv. (2): 1963, No. 147 , added provision for personal property.

Subdiv. (6): 1963, No. 23 , inserted reference to Young Women’s Christian Association.

Subdiv. (8): 1963, No. 30 , deleted, for household furniture and equipment, limitation of exemption to $3,000 and inserted in lieu thereof requirement that such furniture and equipment be “not regularly used as income producing property”.

Subdiv. (13): 1963, No. 29 , added subdiv. (13).

—1962. Subdiv. (11): Changed “grand list appraised value” to “appraisal value”; “widow and/or minor child” to “widow or child”; “if any of them are receiving” to “if one or more of them are receiving”; “disability pension” to “pension”; substituted, in lieu of requirement in par. (B) of a veterans administration certificate, a requirement for a written statement from such administration; added provision that only one exemption may be allowed on a property; and deleted par. (C) requiring sworn statement from veteran showing that his net income is less than $1,400 if unmarried or $2,500 if married or has minor child.

—1961. 1961, No. 216 , § 1, amended subdiv. (11) generally to insert limitation of $6,000 of grand list value, to make section applicable to veteran of any war, to insert income limitations, and to provide reference to definitions in federal Code.

1961, No. 216 , § 2, added subdiv. (12).

—1959. Made section applicable to corporation the members or stockholders of which are members of post or auxiliary and added conditions as to meeting place and lease or rent for profit.

Effective date of amendments—

2011 (Adj. Sess.) 2011, No. 127 (Adj. Sess.), § 7 provides that the amendment to this section by that act shall take effect January 1, 2013.

Effective date and applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70(8) provides that §§ 26-29 (solar plant exemptions and valuation) [which amended subdiv. (17) of this section, §§ 3481(1)(D), 3845, and 8701 of this title] and 32 (valuation of natural gas and petroleum infrastructure) [which amended § 3621 of this title] of that act shall take effect on January 1, 2015 and apply to property appearing on grand lists lodged in 2015 and after.

Effective date and applicability of 2009 (Spec. Sess.) amendment. 2009, No. 1 (Sp. Sess.), § H.28(b), provides that subdiv. (13) of this section (property tax exemption for fallout shelters) is repealed by that act for grand lists prepared for April 1, 2010 and after.

Applicability of enactment.

2011, No. 111 (Adj. Sess.), § 2 provided that the amendment to this section shall take effect on passage [May 8, 2012] and apply to claims for exemptions made after January 1, 2012.

1993 (Adj. Sess.) amendment. 1993, No. 134 (Adj. Sess.), § 2, eff. April 26, 1994, provided in part that the amendment to subdiv. (11)(B) by § 1 of that act shall apply to property taxes assessed on or after April 1, 1994.

1995 amendment. 1995, No. 3 , § 2, eff. March 9, 1995, provided in part that the amendment to subdiv. (11) of this section by § 1 of that act shall affect property taxes assessed on and after April 1, 1995.

1995 (Adj. Sess.) amendment. 1995, No. 105 (Adj. Sess.), § 2, provided that the amendment to subdiv. (11) of this section by § 1 of that act shall affect property taxes assessed on and after April 1, 1995.

1999 amendment. 1999, No. 49 , § 99(a) provided that the amendment to subdiv. (16) by § 44 of that act shall apply to grand lists on and after April 1, 2000.

1999 (Adj. Sess.) amendment. 1999, No. 91 (Adj. Sess.), § 42(d), provided in part that § 23 of that act, which amended subdiv. (11), shall apply to grand lists for 2001 and after.

1999 (Adj. Sess.) amendment. 1999, No. 91 (Adj. Sess.), § 41, contained a severability provision applicable to this section.

Savings provisions; tax stabilization agreement. 1975, No. 101 , § 4, eff. April 30, 1975, provided savings provisions for existing tax stabilization agreement, see note under § 3618 of this title.

Recommendation regarding subdiv. (17). 2011, No. 127 (Adj. Sess.), § 4 as amended by 2013, No. 174 (Adj. Sess.), § 30 provides: “By January 15, 2021, the Department of Taxes shall report to the Senate Committees on Finance and on Natural Resources and Energy and the House Committees on Ways and Means and on Natural Resources and Energy with a recommendation on whether the exemptions in 32 V.S.A. §§ 8701(c) and 3802(17) should be retained or allowed to be repealed and whether the rate of tax in 32 V.S.A. § 8701(b) should be altered.”

CROSS REFERENCES

Approved air pollution treatment facilities exempt from taxation, see 10 V.S.A. § 570 .

Notes to Opinions

Construction with other laws.

Interests in land taken by State for hunting and fishing rights and privileges within the provisions of former 10 V.S.A. § 4142 are not considered interests subject to taxation within provisions of former § 3658 of this title, and interests thus taken are exempt from taxation by subdiv. (1) of this section, and there are no other sections of statute allowing such taxation. 1962-64 Vt. Op. Att'y Gen. 171.

Housing authority property is exempt under subdiv. (4) of this section even without specific exemption in 24 V.S.A. § 4019 (now § 4020). 1960-62 Vt. Op. Att'y Gen. 115.

Tenement house owned by the State, located in town where Vermont sanatorium is situated, used directly in connection with the sanatorium and acquired prior to April 1, 1935, is exempt from taxation under this section and does not come within any exception contained in § 3832 of this title. 1938-40 Vt. Op. Att'y Gen. 334.

Legislative intent.

The true intent of the Legislature in enacting the 1967 amendment to this section was to exempt property which qualified under the act for the 1967 tax year, cancelling any accrued liability. 1968-70 Vt. Op. Att'y Gen. 76.

Museums.

Kent Tavern property in town of Calais, which is held for use as a museum by the Vermont Historical Society, is exempt from taxation under this section providing it is used directly for the purpose of a museum and without profit, and may be exempted from taxation upon vote of the town where it is located under § 3832 of this title if the property is not used directly for the purpose of a public museum but is leased to others for income or profit by the society. 1944-46 Vt. Op. Att'y Gen. 319.

Percentage exemptions.

Applying the broad general rule that statutory exemption from taxation is to be strictly construed to that provision of subdiv. (8) exempting from taxation such percentage of other livestock and poultry as a town may vote at its duly warned annual meeting, it seems clear that the Legislature intended that any percentage exemption under this provision must be duly warned and voted on each year, because it does not appear plainly, either from the express words or necessary intendment of this provision, that a longer duration of exemption was contemplated. 1964-66 Vt. Op. Att'y Gen. 231.

State property.

Property owned by the State and leased to the Vermont Railway, Inc. for railroad purposes is exempt from local taxation under the terms of this section. 1964-66 Vt. Op. Att'y Gen. 211.

Railroad property owned by the State and leased to others for nonrailroad purposes is exempt from both State and local taxation. 1964-66 Vt. Op. Att'y Gen. 211.

Real estate purchased by State highway department for use in connection with highway work, is by this section exempted from local taxation and exception in § 3832 of this title does not apply as highway department is not institution within meaning of that section. 1932-34 Vt. Op. Att'y Gen. 217.

“U-Haul” type trailers.

Since “U-Haul” type trailers are motor vehicles as defined under 23 VS.A. § 4(15) and (31) [now subdiv. (21)], they are specifically exempt from taxation under subdiv. (8) of this section; this exemption, however, does not apply to trailer coaches as defined by 23 V.S.A. § 4(32) (now subdiv. (41).) 1968-70 Vt. Op. Att'y Gen. 94.

Veterans.

Veteran qualified for $2,000 exemption under this section must not only file a Veterans’ Administration disability certificate, but must also, and in addition thereto, file an application for such exemption. 1952-54 Vt. Op. Att'y Gen. 356.

While the last sentence of subdiv. (11) of this section disqualifies certain veterans from receiving the exemption, a widow of such a veteran is not necessarily disqualified. 1950-52 Vt. Op. Att'y Gen. 357.

Regular army officers, retired by reason of disability, who are not receiving “disability compensation” as that term is used by the Department of the Army and the Veteran’s Bureau, but rather are receiving retirement pay, are not entitled to the benefits of subdiv. (11) of this section. 1948-50 Vt. Op. Att'y Gen. 57.

The widow of a veteran who meets the requirements as to honorable discharge, upon becoming entitled to a pension under federal laws, is also entitled to the exemption under this section, irrespective of the amount of disability compensation or the amount of pension received by the veteran when living. 1948-50 Vt. Op. Att'y Gen. 55.

Reserve officers drawing necessary percentage of disability compensation are entitled to benefits of this section. 1946-48 Vt. Op. Att'y Gen. 47.

Veterans’ posts.

Section exempts real estate owned by post of respective organization, and it makes no difference whether post itself holds title to real estate or whether it holds stock of a corporation formed by it to show such title. 1954-56 Vt. Op. Att'y Gen. 349.

ANNOTATIONS

Burden of proof.

As tax exemption statutes are strictly construed by confining their meaning to the express letter or necessary scope of their language, to qualify for exemption taxpayer had to establish facts sufficient to bring itself within the clear meaning of exemption claimed applicable. Brattleboro Child Dev. v. Town of Brattleboro, 138 Vt. 402, 416 A.2d 152, 1980 Vt. LEXIS 1248 (1980).

Taxpayer who claims exemption from taxation for property sequestered or used for public use must show that the use of the subject property confers a benefit upon an indefinite class of persons who are part of the public and that § 3832 of this title, restricting such exemptions, is inapplicable. Ski-Lan Gymnastics and Performing Arts Educational Foundation, Inc. v. City of Rutland, 143 Vt. 294, 465 A.2d 1363, 1983 Vt. LEXIS 522 (1983).

Charitable.

In order to be eligible for tax-exempt status under subdiv. (4) of this section, organization need not show that the majority of its income is derived from charitable sources. Medical Center Hospital of Vermont, Inc. v. City of Burlington, 152 Vt. 611, 566 A.2d 1352, 1989 Vt. LEXIS 190 (1989).

There is no requirement that employees of not-for-profit institutions work for less than market rate in order for that institution to be deemed charitable for purposes of tax exemption. Medical Center Hospital of Vermont, Inc. v. City of Burlington, 152 Vt. 611, 566 A.2d 1352, 1989 Vt. LEXIS 190 (1989).

There is no requirement that health care institution dispense any free care in order to be eligible for tax-exempt status under subdiv. (4) of this section; the pertinent inquiry is whether health care was made available to all who needed it, regardless of their ability to pay. Medical Center Hospital of Vermont, Inc. v. City of Burlington, 152 Vt. 611, 566 A.2d 1352, 1989 Vt. LEXIS 190 (1989).

Not-for-profit health care institution was properly held to be entitled to tax exemption under subdiv. (4) of this section, where institution’s policy was to provide health care to all who needed it, regardless of ability to pay, and where institution devoted excess revenue to maintenance of its purpose. Medical Center Hospital of Vermont, Inc. v. City of Burlington, 152 Vt. 611, 566 A.2d 1352, 1989 Vt. LEXIS 190 (1989).

In action to determine whether hospital was entitled to tax exemption under subdiv. (4) of this section, discovery request concerning whether actions of hospital’s trustees in awarding certain business contracts and in conduct of hospital’s monetary affairs were carried out within bounds of their fiduciary duties was properly denied as irrelevant. Medical Center Hospital of Vermont, Inc. v. City of Burlington, 152 Vt. 611, 566 A.2d 1352, 1989 Vt. LEXIS 190 (1989).

The critical question in determining whether property is entitled to a charitable or public use tax exemption is the use to which the property is put, not its ownership; and it is the primary, as distinguished from an incidental use, that determines whether the property is exempt. Medical Center Hospital of Vermont, Inc. v. City of Burlington, 131 Vt. 196, 303 A.2d 468, 1973 Vt. LEXIS 292 (1973).

That properties are owned by a corporation dedicated to charitable purposes does not establish their exemption; the ownership must be for the appropriate use and benefit of the institution in carrying out the charitable purpose for which it was established. Shelburne Museum, Inc. v. Town of Shelburne, 129 Vt. 341, 278 A.2d 719, 1971 Vt. LEXIS 268 (1971).

The decision of directors of charitable institution as to how the property shall be used cannot control the question of whether it shall be exempt from taxation. Shelburne Museum, Inc. v. Town of Shelburne, 129 Vt. 341, 278 A.2d 719, 1971 Vt. LEXIS 268 (1971).

The fact that a nonprofit corporation stated in its articles of association that it was a charitable organization or that its income was exempt from taxation under United States Code had no applicability to its claim that its real property was exempt from taxation by town on ground that it was used for public or charitable purposes, since direct and immediate use of property itself would be determinative of such claim. Experiment in International Living, Inc. v. Town of Brattleboro, 127 Vt. 41, 238 A.2d 782, 1968 Vt. LEXIS 171 (1968).

Real estate used for purposes directly connected with the running of a charitable institution is exempt under this section. Gifford Memorial Hosp. v. Town of Randolph, 119 Vt. 66, 118 A.2d 480, 1955 Vt. LEXIS 92 (1955).

Dormitories and dining halls furnished by colleges for use of their students are regarded as devoted to college purposes, and fact that certain sums are paid for use of rooms therein does not affect their exemption. Troy Academy v. Town of Poultney, 115 Vt. 480, 66 A.2d 2, 1949 Vt. LEXIS 86 (1949).

Where building owned by college is used in manner that governing body of college in good faith deemed directly connected with the running of the institution as a college and promotive of its purposes, and such judgment is reasonably supported by the fact, it may properly be found that such building is exempt from taxation under this section. Troy Academy v. Town of Poultney, 115 Vt. 480, 66 A.2d 2, 1949 Vt. LEXIS 86 (1949).

Where terms of trust created by will provided that fund might be used “for the permanent upbuilding” of the town and “in doing things of a public nature which the town would not naturally do nor could afford to do at its own expense,” the legacy was not exempt, since things of a public nature need not necessarily be things of a charitable nature, and where power is given to apply a bequest or income therefrom either to uses that are not within classes included as charities, whole bequest fails as a charity. In re Downer's Est., 101 Vt. 167, 142 A. 78, 1928 Vt. LEXIS 138 (1928).

Residuary estate given by will of testator in trust to be applied to charitable uses and purposes of a designated charitable institution is a grant for charitable uses within the meaning of subdiv. (4), and is not subject to taxation. Boyce v. Sumner, 97 Vt. 473, 124 A. 853, 1924 Vt. LEXIS 187 (1924).

Grant for charitable uses within the meaning of this section was exempt from taxation, notwithstanding specific injunction of testator in first codicil that “I want the taxes on all my property promptly paid,” as, in the absence of anything showing a different intention on his part, the word “taxes” is understood in its ordinary sense as having reference to burdens imposed by legislative authority in exercise of taxing power. Boyce v. Sumner, 97 Vt. 473, 124 A. 853, 1924 Vt. LEXIS 187 (1924).

Claim that certain property was exempt from taxation under this section as property “devoted” to charitable uses, meant that the property was so “set apart.” Grand Lodge of Masons v. Burlington, 84 Vt. 202, 78 A. 973, 1911 Vt. LEXIS 262 (1911).

College fraternities.

It was the Legislature’s intent to limit the tax exemption to fraternity-owned property used for the public purpose of housing students. Delta Psi Fraternity v. City of Burlington, 2008 VT 129, 185 Vt. 129, 969 A.2d 54, 2008 Vt. LEXIS 145 (2008).

When a building is uninhabited and uninhabitable by students, the fraternity inactive and without undergraduate members to house in the building, and the use of the structure is intermittent, purely administrative, and by nonstudents, the tax exemption for fraternity-owned property does not apply. Delta Psi Fraternity v. City of Burlington, 2008 VT 129, 185 Vt. 129, 969 A.2d 54, 2008 Vt. LEXIS 145 (2008).

Constitutional law.

Provision of this section exempting from town property taxes “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, boy or girl organization” does not violate State Constitution’s provision that “no part of any person’s property can be justly taken from him, or applied to public uses, without his own consent,” on ground that Constitution places it beyond Legislature’s power to provide for a property tax exemption that is not conditioned upon the vote of the affected town. Governor Clinton Council, Inc. v. Koslowski, 137 Vt. 240, 403 A.2d 689, 1979 Vt. LEXIS 974 (1979).

Equal Protection Clause is not violated by this section’s provision exempting from town property tax the property owned by and used for the purpose of its work by a nonprofit organization chartered by act of Congress, such as the Red Cross and boy and girl scouts. Governor Clinton Council, Inc. v. Koslowski, 137 Vt. 240, 403 A.2d 689, 1979 Vt. LEXIS 974 (1979).

Construction.

Various clauses of the provision regarding property tax exemptions are disjunctive, not conjunctive; the public schools exemption is separate and independent from the exemption in the same statute for “public, pious, or charitable” uses. Therefore, a property owner could apply for exemption from taxation under multiple clauses of the provision. Vt. College of Fine Arts v. City of Montpelier, 2017 VT 12, 204 Vt. 215, 165 A.3d 1065, 2017 Vt. LEXIS 10 (2017).

Since tax exemption statutes are strictly construed by confining their meaning to the express letter or necessary scope of the language, to qualify for an exemption taxpayer must establish facts sufficient to bring itself within the clear meaning of the claimed exemption. Ski-Lan Gymnastics and Performing Arts Educational Foundation, Inc. v. City of Rutland, 143 Vt. 294, 465 A.2d 1363, 1983 Vt. LEXIS 522 (1983).

Real estate, within the meaning of this section, is land with its fixtures and accessories measurable and capable of description by metes and bounds. Magoon v. Board of Civil Authority, Town of Johnson, 140 Vt. 612, 442 A.2d 1276, 1982 Vt. LEXIS 456 (1982).

Tax exemption statutes are to be construed most strongly against those claiming the benefits. Trustees of Vt. Wild Land Found. v. Town of Pittsford, 137 Vt. 439, 407 A.2d 174, 1979 Vt. LEXIS 1013 (1979).

Supreme Court must construe this section in a reasonable manner and ascertain the legislative intent from a consideration of the entire statute, having regard to both subject matter and ramifications of the statute. Governor Clinton Council, Inc. v. Koslowski, 137 Vt. 240, 403 A.2d 689, 1979 Vt. LEXIS 974 (1979).

In construing statutes of exemption from taxation, regard must be had for the settled rule that they are to be construed most strongly against those who claim the benefit, but the construction must be reasonable and not such as would defeat the purposes of the statute. Experiment in International Living, Inc. v. Town of Brattleboro, 127 Vt. 41, 238 A.2d 782, 1968 Vt. LEXIS 171 (1968).

Statutory exemption from taxation is to be strictly construed. Stowe Preparatory School, Inc. v. Town of Stowe, 124 Vt. 392, 205 A.2d 544, 1964 Vt. LEXIS 120 (1964).

Section providing for an exemption from taxation is to be strictly construed, although the construction must be reasonable and not such as would defeat purposes of section. Gifford Memorial Hosp. v. Town of Randolph, 119 Vt. 66, 118 A.2d 480, 1955 Vt. LEXIS 92 (1955); Troy Academy v. Town of Poultney, 115 Vt. 480, 66 A.2d 2, 1949 Vt. LEXIS 86 (1949); Brattleboro Retreat v. Town of Brattleboro, 106 Vt. 228, 173 A. 209, 1934 Vt. LEXIS 165 (1934).

Construction equipment.

Under subdiv. (8) of this section, construction equipment consisting of rollers, a power shovel, and a backhoe were exempt from property tax, since they fit definition of “motorized highway building equipment” in 23 V.S.A. § 4(19) and were required to be registered as motor vehicles. Pizzagalli Construction Co. v. Town of Whitingham, 146 Vt. 490, 505 A.2d 678, 1986 Vt. LEXIS 317 (1986).

Dump trucks, which were diesel powered vehicles on rubber tires designed for the transportation of waste fill, were exempt from property tax as “motor vehicles” under subdiv. (8) of this section.

Construction with other laws.

Our Lady of Ephesus House of Prayer, Inc. v. Town of Jamaica, 2005 VT 16, 178 Vt. 35, 869 A.2d 145, 2005 Vt. LEXIS 13 (2005).

Even though the exemption in subdiv. (15) of this section, exempting “[r]eal and personal property owned by a charitable, nonprofit organization devoted to the welfare, protection and humane treatment of animals,” overlaps somewhat with subdiv. 3618(c)(1) of this title, limiting a city’s ability to tax business personal property to those of businesses conducted for profit, the latter provision is in no way redundant, as the former grants a tax exemption to both real and personal property of a specific class of non-profit organizations, and, in any event, this overlap does not affect the fact that the Legislature excluded personal property of nonprofit businesses from the class of property subject to tax in the first instance. Vermont Alliance of Nonprofit Organizations v. City of Burlington, 2004 VT 57, 177 Vt. 47, 857 A.2d 305, 2004 Vt. LEXIS 176 (2004).

Due to the limitation in subdiv. 3618(c)(1) of this title on a city’s ability to tax business personal property to those of businesses conducted for profit, a nonprofit organization was not required to qualify for the specific exemption contained in subdiv. (4) of this section excluding personal estate “used for public, pious or charitable uses” from taxation. Vermont Alliance of Nonprofit Organizations v. City of Burlington, 2004 VT 57, 177 Vt. 47, 857 A.2d 305, 2004 Vt. LEXIS 176 (2004).

§ 3832 of this title, providing exceptions to tax exemption granted to real estate granted, sequestered or used for public, pious or charitable uses, applies only to exemption for public, pious or charitable uses found in subdiv. (4) of this section, and is not applicable to State-owned land and buildings exempt under subdiv. (1) of this section. Vermont Division of State Buildings v. Town of Duxbury, 145 Vt. 508, 494 A.2d 142, 1985 Vt. LEXIS 322 (1985).

§ 3651 of this title, which permits a town, village, school, and fire district to list the last owner or possessor of real estate in the grand list, is a general rule that is applicable to property that is already taxable, and by its plain language does not apply to properties already tax exempt pursuant to this section. Magoon v. Board of Civil Authority, Town of Johnson, 140 Vt. 612, 442 A.2d 1276, 1982 Vt. LEXIS 456 (1982).

Trial court erred in concluding that town could, pursuant to § 3651 of this title, list 45-acre parcel conveyed by property owners to the State of Vermont, with reservation of the exclusive use and control of the parcel to the former owners for a term of years, since the fee simple title in the parcel was owned by the State and exempt from local tax under this section, and the land was only taxable pursuant to former § 3615 of this title, allowing for a limited tax on State forests and parks. Magoon v. Board of Civil Authority, Town of Johnson, 140 Vt. 612, 442 A.2d 1276, 1982 Vt. LEXIS 456 (1982).

Property the primary use of which was a summer recreational nonprofit camp for children came under § 3832 of this title providing that there shall be no property tax exemption for real and personal property used for public, pious, or charitable purposes if it is used primarily for health or recreational purposes unless the town votes to allow such exemption. In re Aloha Foundation, Inc., 134 Vt. 239, 360 A.2d 74, 1976 Vt. LEXIS 640 (1976).

Definition of “public school” in former 16 V.S.A. § 791(1) , concerned with administration of State educational system, would not be held to control for purposes of real property taxation and exemption therefrom. Town of Williston v. Pine Ridge School, Inc., 132 Vt. 439, 321 A.2d 24, 1974 Vt. LEXIS 366 (1974).

Under the provisions of § 3652 of this title, the Small Business Administration as mortgagee in possession was the owner of mortgaged premises and as such was exempt from taxation under subdiv. (1) of this section. Town of Bristol v. United States, 315 F. Supp. 908, 1970 U.S. Dist. LEXIS 10734 (D. Vt. 1970).

Subdiv. (4) of this section and § 3840 must be construed with reference to each other as parts of one system, and are to be construed most strongly against one who claims their benefit, but such construction must be reasonable and not such as to defeat their purposes. New York Institute for Education of Blind v. Town of Wolcott, 128 Vt. 280, 262 A.2d 451, 1970 Vt. LEXIS 223 (1970).

As § 3840 was enacted later than this section, the general exceptions of the earlier statute are modified and made less inclusive by the later one. New York Institute for Education of Blind v. Town of Wolcott, 128 Vt. 280, 262 A.2d 451, 1970 Vt. LEXIS 223 (1970).

If the facts of a given case put the case within § 3840 of this title, the provisions of that section control and there can be no tax exemption unless the town votes one. New York Institute for Education of Blind v. Town of Wolcott, 128 Vt. 280, 262 A.2d 451, 1970 Vt. LEXIS 223 (1970).

The intent under § 3831(a) of this title to exclude the real property of a college, university, or fraternity from the real estate taxation exemption of this section is clear. Stowe Preparatory School, Inc. v. Town of Stowe, 124 Vt. 392, 205 A.2d 544, 1964 Vt. LEXIS 120 (1964).

If facts are such that given case falls within § 3840 of this title, provisions of that section, rather than this section, are controlling and there can be no exemption from taxation without vote of town to that effect. Fort Orange Council v. French, 119 Vt. 378, 125 A.2d 835, 1956 Vt. LEXIS 119 (1956).

Provision for exemption from taxation of property granted, sequestered, or used for charitable purposes, and § 3840 of this title, are in pari materia, since both relate to exemption of property from taxation, and are to be construed with reference to each other as parts of one system. Grand Lodge of Vermont, F. & A.M. v. City of Burlington, 104 Vt. 515, 162 A. 368, 1932 Vt. LEXIS 174 (1932).

Federally chartered organizations.

Provision for exemption from town property taxes for property owned by and used for the purpose of its work by federally chartered nonprofit organizations did not apply to a scouting organization not chartered by act of the Congress of the United States. Hopkinton Scout Leaders Ass'n v. Town of Guilford, 2004 VT 2, 176 Vt. 577, 844 A.2d 753, 2004 Vt. LEXIS 8 (2004).

Organization seeking exemption under this section’s provision for exemption for property owned by and used for the purpose of its work by federally chartered nonprofit organizations must show that the property is directly and substantially utilized in furtherance of the organization’s purposes; and while income from the property will not defeat the exemption, the property must be put to some other use directly serving the goals sought to be fostered by the exemption; and the use must be bona fide and provable and a token use will not meet the threshold of substantiality. Governor Clinton Council, Inc. v. Koslowski, 137 Vt. 240, 403 A.2d 689, 1979 Vt. LEXIS 974 (1979).

Under this section’s provision for exemption from town property taxes for property owned by and used for the purpose of its work by federally chartered nonprofit organizations, boy scout camp was entitled to exemption for timberland shown to be substantially and directly utilized for camp purposes, but was not entitled to exemption as to wilderness lands not shown to be so utilized. Governor Clinton Council, Inc. v. Koslowski, 137 Vt. 240, 403 A.2d 689, 1979 Vt. LEXIS 974 (1979).

Foreign corporations.

Because the taxpayer, a Michigan nonprofit corporation, was not authorized to transact business in Vermont until it obtained a certificate of authority in February 2019, it was not eligible for a tax exemption prior to then and was not entitled to a refund of taxes it paid or owed previously. While the taxpayer’s registration might have cured the defect of lack of capacity for purposes of maintaining its lawsuit, it did not follow that the belated registration retroactively entitled the taxpayer to the tax exemption. Zlotoff Found. v. Town of S. Hero, 2020 VT 25, 212 Vt. 63, 231 A.3d 1146, 2020 Vt. LEXIS 31 (2020).

Fraternal orders.

General exemptions of this section do not apply to real estate held by a fraternal order. Grand Lodge of Vermont, F. & A.M. v. City of Burlington, 104 Vt. 515, 162 A. 368, 1932 Vt. LEXIS 174 (1932).

Health and recreational.

Land and buildings leased rent-free for an alcoholic treatment and rehabilitation center were used for a public health or recreational purpose within meaning of statutory provision that tax exemption for real and personal property granted, used or sequestered for public, pious, or charitable uses shall not be construed as exempting property used primarily for health or recreational purposes unless the local voters vote to exempt the property, and property owner was not entitled to an exemption where no vote had been held. Fletcher Farm, Inc. v. Town of Cavendish, 137 Vt. 582, 409 A.2d 569, 1979 Vt. LEXIS 1079 (1979).

Machinery.

Silos constructed on taxpayers’ premises for feed storage purposes, erected on poured concrete foundations with brackets securing the silos to the foundation and capable of being disassembled, except for base and cement foundation, but of no real independent use in disassembled state, were not machinery within the meaning of that term in this section. George v. Town of Calais, 135 Vt. 244, 373 A.2d 553, 1977 Vt. LEXIS 597 (1977).

Municipal corporations.

A municipal corporation is, by implication, exempt from taxation; but this exemption extends only to property devoted to public use. Styles v. Village of Newport, 76 Vt. 154, 56 A. 662, 1904 Vt. LEXIS 114 (1904).

Museums.

Where the advantage derived by plaintiff museum from use of house on museum property as a dwelling for an employee was collateral to the historical and educational purposes for which the institution was founded, house was a private building on museum land and beyond the scope of tax exemption. Shelburne Museum, Inc. v. Town of Shelburne, 129 Vt. 341, 278 A.2d 719, 1971 Vt. LEXIS 268 (1971).

Where governing board of museum was using director’s home on museum property in a way that was essential to the operation of the museum and in furtherance of its charitable purpose, director was responsible for museum security, was required to be on grounds, and home was used for business and entertaining in museum’s interest, property was exempt from taxation.

Pious uses.

A court must determine the “primary use” of property to determine if it is an exempt use; this property-specific inquiry is mandated by the statute limiting the exemption from taxation of real and personal estate granted, sequestered, or used for public, pious, or charitable uses. Our Lady of Ephesus House of Prayer, Inc. v. Town of Jamaica, 2005 VT 16, 178 Vt. 35, 869 A.2d 145, 2005 Vt. LEXIS 13 (2005).

The purpose of subdiv. (4) of this section, exempting real estate used for pious uses from taxation, is to benefit an indefinite class of persons who are part of the public. In re Abbey Church of St. Andrew, 145 Vt. 227, 485 A.2d 1263, 1984 Vt. LEXIS 584 (1984).

Subdiv. (4) of this section and § 3832 of this title, exempting real estate owned, used, or kept for pious uses from taxation, did not exempt property owned by private individuals who leased it to a church that used it exclusively for religious purposes. In re Abbey Church of St. Andrew, 145 Vt. 227, 485 A.2d 1263, 1984 Vt. LEXIS 584 (1984).

Property taxed elsewhere.

Under provision exempting personal estate owned by inhabitant of this State but situated and taxed in another state, debt evidenced by promissory note owned by such inhabitant is taxable here, although secured on land in another state where mortgagee’s interest is taxed as real estate, and note and mortgage are in possession of their owner’s agent living where land is situated. Bullock v. Town of Guilford, 59 Vt. 516, 9 A. 360, 1887 Vt. LEXIS 120 (1887).

Public use.

There is no indication in the plain language of the statute that the Legislature intended to engraft zoning laws into the public-use exemption, and such a condition is not necessary to effectuate the statute, the purpose of which is to exempt from taxation land used to serve a public purpose. Whether a property owner has obtained permits for a particular use is a separate and unrelated question to whether the property is being used to serve the public. Zlotoff Found. v. Town of S. Hero, 2020 VT 25, 212 Vt. 63, 231 A.3d 1146, 2020 Vt. LEXIS 31 (2020).

Parcel of land containing a garage that was owned and used by a nonprofit charitable organization to store and maintain a collection of classic automobiles that it displayed at its nearby museum was exempt from taxation under the public-use exception as the garage served an essential function that was directly connected to the running of the museum and furthered the museum’s charitable purpose in that the museum could display only seven of its forty vehicles at a time and needed a place to store, repair, and maintain the other vehicles. Since the primary use of the land was to support the garage, which itself was necessary to the running of the museum, the land was also exempt. Zlotoff Found. v. Town of S. Hero, 2020 VT 25, 212 Vt. 63, 231 A.3d 1146, 2020 Vt. LEXIS 31 (2020).

Buildings owned by a county parent-child center were exempt under the public use exemption, as the center’s programs benefitted an indefinite class that was part of the public, and the benefit to the public was a reduction or minimization of the need to fund State services that participants might otherwise need throughout their lives. Moreover, an early education program was not a child care program and thus fell within the exemption as well. Rutland County Parent Child Center, Inc. v. City of Rutland, 2017 VT 81, 205 Vt. 457, 176 A.3d 514, 2017 Vt. LEXIS 102 (2017).

When two-thirds of a building had been rented to State agencies, it did not qualify for the “public use” exemption, as there was no concurrence of mission between use and ownership of the property in that the owner and the State did not share a single mission. Vt. College of Fine Arts v. City of Montpelier, 2017 VT 12, 204 Vt. 215, 165 A.3d 1065, 2017 Vt. LEXIS 10 (2017).

Taxpayer that operated an artists’ residency program was not entitled to a public-use tax exemption when those who sought to benefit from the use of its property had to file an application, and the taxpayer exercised sole discretion in determining who qualified. The fact that the application process was open “to the entire world” was of no moment; what was significant was the existence of the taxpayer’s screening process and the restrictions it imposed on those who could benefit from the primary use of the property, which was the hallmark of a “private” as opposed to a “public” use. Vermont Studio Ctr., Inc. v. Town of Johnson, 2010 VT 59, 188 Vt. 223, 5 A.3d 904, 2010 Vt. LEXIS 63 (2010).

Tax exemption under subdiv. (4) is not limited to not-for-profit corporations that provide direct and immediate benefits to the citizens of Vermont and the local community where the corporation is located. Institute of Professional Practice, Inc. v. Town of Berlin, 174 Vt. 535, 811 A.2d 1238, 2002 Vt. LEXIS 239 (2002) (mem.).

Property used by a not-for-profit corporation for administration and management qualifies for the exemption under subdiv. (4), even though other property used by the corporation to provide direct services is subject to tax or is out of state. Institute of Professional Practice, Inc. v. Town of Berlin, 174 Vt. 535, 811 A.2d 1238, 2002 Vt. LEXIS 239 (2002) (mem.).

Three-part test to determine when property is entitled to tax-exempt status as a “public use” under subdiv. (4) is as follows: (1) the property must be dedicated unconditionally to public use; (2) the primary use must directly benefit an indefinite class of persons who are part of the public, and must also confer a benefit on society as a result of the benefit conferred on the persons directly served; and (3) the property must be owned and operated on a not-for-profit basis. Andrew C. and Margaret R. Sigler Foundation v. Town of Norwich, 174 Vt. 129, 807 A.2d 442, 2002 Vt. LEXIS 220 (2002).

Property of a foundation operating a dairy farm with the mission of encouraging the preservation, survival, and advancement of dairy farms in New England is tax exempt under subdiv. (4) because, while the bulk of the farm’s beneficiaries can be identified as persons interested in dairy farming and related practices, it is open to the public at large and has never turned anyone away; thus, proper application of precedent requires a conclusion that the use of the property benefits an indefinite class of persons. Andrew C. and Margaret R. Sigler Foundation v. Town of Norwich, 174 Vt. 129, 807 A.2d 442, 2002 Vt. LEXIS 220 (2002).

The three-part test for determining tax exempt “public uses” extends to lands sequestered for pious and charitable uses under the statute. Herrick v. Town of Marlboro, 173 Vt. 170, 789 A.2d 915, 2001 Vt. LEXIS 371 (2001).

Sequestration of land by owner for “pious” purposes did not overcome the test for determining tax exempt “public uses” because there was no concurrence of nonprofit ownership and use; even though the owner derived no immediate income from activities or services performed on the property, so long as he retained title to the land and various benefits of ownership, such as property value appreciation and increasing investment income, the property did not qualify for the tax exemption. Herrick v. Town of Marlboro, 173 Vt. 170, 789 A.2d 915, 2001 Vt. LEXIS 371 (2001).

Trial court did not err in finding that property used as a home for developmentally disabled adults was unconditionally dedicated to public use and thus exempt from property taxation; however, adjoining property which had been leased to developmentally disabled individual and then sold was not so dedicated and thus was not entitled to exemption. Twin Valley Community Services, Inc. v. Town of Randolph, 170 Vt. 648, 756 A.2d 1233, 2000 Vt. LEXIS 135 (2000) (mem.).

Property owned by private individuals and leased to nonprofit organization that used it as a group home for mentally retarded persons did not qualify for public use tax exemption. Lincoln Street, Inc. v. Town of Springfield, 159 Vt. 181, 615 A.2d 1028, 1992 Vt. LEXIS 118 (1992).

Separate clauses of public use tax exemption statute must be read together as parts of unified statutory system; concurrence of nonprofit ownership and use is necessary to make statute as a whole effective. Lincoln Street, Inc. v. Town of Springfield, 159 Vt. 181, 615 A.2d 1028, 1992 Vt. LEXIS 118 (1992).

Where benefit of public use tax exemption would flow to private individuals, rather than to an indefinite class of persons who are part of the public, use is not public, purpose of public use tax exemption statute is not met, and town cannot be required to exempt property from taxation. Lincoln Street, Inc. v. Town of Springfield, 159 Vt. 181, 615 A.2d 1028, 1992 Vt. LEXIS 118 (1992).

“Public use” exemption under subdiv. (4) of this section will not be construed so strictly as to exclude all public uses not assuming mandated governmental services. Kingsland Bay School, Inc. v. Town of Middlebury, 153 Vt. 201, 569 A.2d 496, 1989 Vt. LEXIS 224 (1989).

Under subdiv. (4) of this section, property owned by nonprofit corporation providing residential services to troubled adolescents, including academic and vocational training, was exempt from property tax. Kingsland Bay School, Inc. v. Town of Middlebury, 153 Vt. 201, 569 A.2d 496, 1989 Vt. LEXIS 224 (1989).

Before property is entitled to tax-exempt status as a public use, the property must be dedicated unconditionally to public use, the primary use must directly benefit an indefinite class of persons who are part of the public, and must also confer a benefit on society as a result of the benefit conferred on the persons directly served, and the property must be owned and operated on a not-for-profit basis; “essential governmental function” test overruled. American Museum of Fly Fishing, Inc. v. Town of Manchester, 151 Vt. 103, 557 A.2d 900, 1989 Vt. LEXIS 21 (1989).

In determination of whether property is entitled to tax-exempt status as a public use, requirement of nonprofit operation does not mean that property may never operate in the black, but rather that any excess of income over expenses must be derived incidentally from, and not as deliberate goal of, the operation, and must be devoted to public objectives of project. American Museum of Fly Fishing, Inc. v. Town of Manchester, 151 Vt. 103, 557 A.2d 900, 1989 Vt. LEXIS 21 (1989).

While properties that actually provide essential governmental function may be exempt from taxation under subdiv. (4) of this section, property will not be required to assume such a burden in order to achieve tax-exempt status. American Museum of Fly Fishing, Inc. v. Town of Manchester, 151 Vt. 103, 557 A.2d 900, 1989 Vt. LEXIS 21 (1989).

College was not entitled to an exemption under subdiv. (4) of this section solely by virtue of its ownership of a tract of land as a trustee for the public. Middlebury College v. Town of Hancock, 147 Vt. 259, 514 A.2d 1061, 1986 Vt. LEXIS 405 (1986).

Property which was granted or sequestered for a public use, but used primarily for recreational purposes, was subject to taxation, since the public use exemption under subdiv. (4) of this section was precluded by subdiv. 3832(7) of this title. Middlebury College v. Town of Hancock, 147 Vt. 259, 514 A.2d 1061, 1986 Vt. LEXIS 405 (1986).

In determining whether property should qualify for tax exemption as real and personal estate sequestered or used for public use, the governing consideration is the direct and immediate, rather than the remote or incidental, benefit derived from the use of the property. Ski-Lan Gymnastics and Performing Arts Educational Foundation, Inc. v. City of Rutland, 143 Vt. 294, 465 A.2d 1363, 1983 Vt. LEXIS 522 (1983).

To be granted exemption from property tax for facilities dedicated to public uses or public schools, one must show the use confers a benefit upon an indefinite class of persons who are part of the public, and excluded from meaning of “public” are those uses or activities that, though some might benefit a broad indefinite class of persons who are part of the general public, do not in fact do so. The term “public” also excludes those uses and activities which, due to the nature of the use or activity, the structure of the administering organization, or the manner of administering the use or activity, the benefits are in fact available only to a class of persons who form a closed circle of beneficiaries designated by a judgmental selection process. Brattleboro Child Dev. v. Town of Brattleboro, 138 Vt. 402, 416 A.2d 152, 1980 Vt. LEXIS 1248 (1980).

Exemption under this section’s provision for tax exemption for property granted or used for public uses depends on the direct and immediate use of the property, not the dedication of the property to public purposes or the decision of those controlling the property as to how the property shall be used. Trustees of Vt. Wild Land Found. v. Town of Pittsford, 137 Vt. 439, 407 A.2d 174, 1979 Vt. LEXIS 1013 (1979).

For purposes of determining exemption under this section’s provision exempting from taxation real and personal property granted, sequestered or used for public, pious, or charitable uses, the critical factor is the primary use to which the property is put. Fletcher Farm, Inc. v. Town of Cavendish, 137 Vt. 582, 409 A.2d 569, 1979 Vt. LEXIS 1079 (1979).

Where this section granted tax exemption for property granted or used for public uses, with respect to requirement that there must be a benefit upon the public at large, it was the direct and immediate, rather than the remote or incidental, benefit that governed. Trustees of Vt. Wild Land Found. v. Town of Pittsford, 137 Vt. 439, 407 A.2d 174, 1979 Vt. LEXIS 1013 (1979).

To qualify for exemption under provision of this section granting tax exemption for property granted or used for public uses, the use must confer a benefit upon the public at large or an indefinite part of such public, rather than on a closed circle or a group determined by choice or selection; the distinction being between a private or limited and a general or indefinite benefit, though it is not essential that every member of the community actually be served. Trustees of Vt. Wild Land Found. v. Town of Pittsford, 137 Vt. 439, 407 A.2d 174, 1979 Vt. LEXIS 1013 (1979).

Where the immediate benefit from use of land was restricted to a limited number of students and researchers at the college level and the determination as to which particular researchers could use the land was under the control and direction of the trustees of the land, there was not a public use within provision of this section granting tax exemption for property granted or used for public uses and there could be no tax exemption. Trustees of Vt. Wild Land Found. v. Town of Pittsford, 137 Vt. 439, 407 A.2d 174, 1979 Vt. LEXIS 1013 (1979).

Where Court had consistently held that as to property tax exemption for property used for public, pious, or charitable uses, the primary use of the property governed its taxability, and Legislature amended another part of the law, exempting a different type of organization if the organization used the property for the purpose of its work, Legislature would be taken to have acted with knowledge of the long-standing judicial construction of the use requirement and court would conclude that in requiring that property owned by an exempt organization be used for the purpose of its work, the Legislature did not intend to incorporate the primary use test evolved in the cases. Governor Clinton Council, Inc. v. Koslowski, 137 Vt. 240, 403 A.2d 689, 1979 Vt. LEXIS 974 (1979).

To achieve exempt status from taxation on public use grounds, the property must confer a benefit upon that segment of the public which the institution was designed to serve and in such case the governing consideration is the direct and immediate benefit derived from the use of the property, rather than the remote or incidental benefit produced by its primary function. Shelburne Museum, Inc. v. Town of Shelburne, 129 Vt. 341, 278 A.2d 719, 1971 Vt. LEXIS 268 (1971).

The test for exemption under this section is the same whether the property is used for public or charitable purposes. New York Institute for Education of Blind v. Town of Wolcott, 128 Vt. 280, 262 A.2d 451, 1970 Vt. LEXIS 223 (1970).

The critical question in determining whether property is entitled to a charitable or public use exemption is the use to which the property is put, and it is the primary as distinguished from an incidental use that is deciding. New York Institute for Education of Blind v. Town of Wolcott, 128 Vt. 280, 262 A.2d 451, 1970 Vt. LEXIS 223 (1970).

In order to qualify for a public use exemption, the use must confer a benefit upon an indefinite class of persons. New York Institute for Education of Blind v. Town of Wolcott, 128 Vt. 280, 262 A.2d 451, 1970 Vt. LEXIS 223 (1970).

The benefits of the real and personal property of nonprofit corporation that instructed children born blind or who became blind were “conferred upon an indefinite class of persons who are part of the public” within the meaning of this section, and the property was not used exclusively for the purposes of the organization within the meaning of § 3840 of this title, so that the corporation was entitled to a public use exemption under this section and § 3840 of this title was inapplicable. New York Institute for Education of Blind v. Town of Wolcott, 128 Vt. 280, 262 A.2d 451, 1970 Vt. LEXIS 223 (1970).

Use of property of nonprofit corporation under contract with Peace Corps in conducting training programs for Peace Corps trainees did not constitute a use of real property entitling corporation to exemption from town tax, on theory that corporation provided benefit conferred upon an indefinite class of persons, who are part of the public. Experiment in International Living, Inc. v. Town of Brattleboro, 127 Vt. 41, 238 A.2d 782, 1968 Vt. LEXIS 171 (1968).

While training furnished by nonprofit corporation at its facilities was supplied on nonprofit basis and possibly even at some monetary loss, inasmuch as beneficiaries of use of property were not members of public at large or an indefinite part of such public but were restricted to very definite class of beneficiaries chosen by contracting organizations, real property of corporations was not exempt from town tax as being used for public or charitable purposes. Experiment in International Living, Inc. v. Town of Brattleboro, 127 Vt. 41, 238 A.2d 782, 1968 Vt. LEXIS 171 (1968).

Where Peace Corps training constituted major portion of activity at school conducted on nonprofit corporation’s premises, such was primary use of the property and real property was not entitled to exemption from town tax, as being for public or charitable purposes, even though it was used for other programs. Experiment in International Living, Inc. v. Town of Brattleboro, 127 Vt. 41, 238 A.2d 782, 1968 Vt. LEXIS 171 (1968).

Where nonprofit corporation’s property was used to give higher educational training to those who were already at college or university level, it was not a public school and was not exempt from taxation by town as such. Experiment in International Living, Inc. v. Town of Brattleboro, 127 Vt. 41, 238 A.2d 782, 1968 Vt. LEXIS 171 (1968).

For an organization to qualify as charitable organization on ground that it provides benefit conferred upon indefinite class of persons who are part of the public, claimed use must be a public one. Experiment in International Living, Inc. v. Town of Brattleboro, 127 Vt. 41, 238 A.2d 782, 1968 Vt. LEXIS 171 (1968).

Where city is empowered by charter to take water for domestic, sanitary, and general industrial uses beneficial to public and for protection against fire, and its entire water system is no more than sufficient to produce adequate supply for such uses, such property is devoted to “public use.” Town of Orange v. City of Barre, 95 Vt. 267, 115 A. 238, 1921 Vt. LEXIS 210 (1921).

Where incorporated village had statutory authority to maintain electric light plant to light its streets, but had no such authority to furnish electric lights to its inhabitants, and part of the plant devoted to later use and subject to taxation by town in which it was located was, by act of the village, so merged in the part devoted to public use that it could not be separated, the whole plant was taxable. Village of Swanton v. Town of Highgate, 81 Vt. 152, 69 A. 667, 1908 Vt. LEXIS 127 (1908).

Water system owned by municipality used for fire protection and other municipal purposes, and also to supply water to its inhabitants for domestic purposes in consideration of a compensation that yields an incidental profit to the municipality, even though part of the system is within the territory of another municipality, is property devoted to a public use, and is exempt from taxation. Styles v. Village of Newport, 76 Vt. 154, 56 A. 662, 1904 Vt. LEXIS 114 (1904).

A branch from its main water system built by municipality outside of its corporate limits and devoted wholly to the needs of another village, which can never be made available for its own municipal service is not properly devoted to a public use and is not exempt from taxation. Styles v. Village of Newport, 76 Vt. 154, 56 A. 662, 1904 Vt. LEXIS 114 (1904).

Property of private corporation, used for purposes of supplying inhabitants of municipality with water for domestic and other purposes, is not exempt from taxation under this section. Godfrey v. Bennington Water Co., 75 Vt. 350, 55 A. 654, 1903 Vt. LEXIS 139 (1903).

Schools and colleges.

When two-thirds of a building had been rented to State agencies, it did not qualify for the “public schools” exemption, even though it had been used for educational purposes in the past and might be again in the future. Vt. College of Fine Arts v. City of Montpelier, 2017 VT 12, 204 Vt. 215, 165 A.3d 1065, 2017 Vt. LEXIS 10 (2017).

City conceded that a private school owned the properties in question, that it was a nonprofit corporation organized and operated solely for educational purposes, that it was licensed by the State as an independent elementary school, and that the properties in question were at all relevant times employed for the appropriate use and benefit of the school. Thus, the school qualified for the exemption for lands “owned by colleges, academies or other public schools.” Mt. View Cmty. Sch., Inc. v. City of Rutland, 2011 VT 65, 190 Vt. 122, 27 A.3d 312, 2011 Vt. LEXIS 66 (2011).

Clauses of subdiv. 4 of the property tax exemption statute were disjunctive, not conjunctive, and a school was not required to satisfy the criteria for the “public, pious or charitable” use exemption in seeking an exemption for land owned by a “college, academy or other public school.” Mt. View Cmty. Sch., Inc. v. City of Rutland, 2011 VT 65, 190 Vt. 122, 27 A.3d 312, 2011 Vt. LEXIS 66 (2011).

Purpose of provision exempting “lands owned or leased by colleges, academies or other public schools” is to free from taxation land that is being used to serve some public purpose; thus, if there is no educational use to the land, there is no benefit to the State, and, consequently, no reason why the Legislature would forgo the benefit of taxation for this land. Burr & Burton Seminary v. Town of Manchester, 172 Vt. 433, 782 A.2d 1149, 2001 Vt. LEXIS 263 (2001).

School must use its property for an educational purpose, in addition to owning it, in order to claim the tax exemption. Burr & Burton Seminary v. Town of Manchester, 172 Vt. 433, 782 A.2d 1149, 2001 Vt. LEXIS 263 (2001).

School property that was being rented to paying tenants, in order to derive a cash flow from the building, was not exempt from property tax. Burr & Burton Seminary v. Town of Manchester, 172 Vt. 433, 782 A.2d 1149, 2001 Vt. LEXIS 263 (2001).

School property used as a residence for the headmaster and a venue for the school was exempt from property tax. Burr & Burton Seminary v. Town of Manchester, 172 Vt. 433, 782 A.2d 1149, 2001 Vt. LEXIS 263 (2001).

Land owned by school that was not being used at all, let alone for any educational purpose, was not exempt from property tax. Berkshire School v. Town of Reading, 172 Vt. 440, 781 A.2d 282, 2001 Vt. LEXIS 264 (2001).

Where landowner leased land to nonprofit educational corporation and it was used for educational purposes, landowner was not entitled to tax exemption under this section providing that lands owned or leased by colleges, academies, or other public schools shall be exempt from taxation. Broughton v. Town of Charlotte, 134 Vt. 270, 356 A.2d 520, 1976 Vt. LEXIS 650 (1976).

School for remediation of specific, severe learning disabilities of elementary- and high school-aged persons, which also gave them the same education they would receive in the regular school systems, and which had a $7,000 per school year fee for tuition, room, and board, and received approximately 40 percent of its revenue through State and federal funds in the form of tuition payments, was a public school and its land was used for educational purposes, and was thus tax exempt under this section. Town of Williston v. Pine Ridge School, Inc., 132 Vt. 439, 321 A.2d 24, 1974 Vt. LEXIS 366 (1974).

Where a school is devoted to college preparatory instruction and does not offer any courses at the college or university level, such school is not a college or university within the meaning of § 3831(a) of this title and its real property is therefore exempt from taxation by virtue of this section, even though the articles of association of the school do not preclude it from offering courses at the college or university level. Stowe Preparatory School, Inc. v. Town of Stowe, 124 Vt. 392, 205 A.2d 544, 1964 Vt. LEXIS 120 (1964).

Before enactment of 1910 Acts and Resolves No. 33, excepting timber and commercial properties from the exemption, lands owned by a college were exempt from taxation, although held as an investment and rented for purposes not directly connected with the running of the institution. Troy Academy v. Town of Poultney, 115 Vt. 480, 66 A.2d 2, 1949 Vt. LEXIS 86 (1949).

Exception of timber land from the exemption from taxation of lands owned by colleges refers to timber lands owned by colleges beneficially, and not to timber lands of which they have bare legal title as trustee. President of Middlebury College v. Town of Hancock, 115 Vt. 157, 55 A.2d 194, 1947 Vt. LEXIS 93 (1947).

Building acquired prior to 1911 by an academy is exempt from taxation under this section where it is rented in part for a boarding-house for students and others, and in part for tenements, but the rents are used for the support of the school. Scott v. St. Johnsbury Academy, 86 Vt. 172, 84 A. 567, 1912 Vt. LEXIS 163 (1912); Willard v. Pike, 59 Vt. 202, 9 A. 907, 1886 Vt. LEXIS 37 (1886).

Building acquired prior to 1911 by an academy is exempt under this section, even though it is used wholly as rental property and the proceeds applied toward support of the school. Scott v. St. Johnsbury Academy, 86 Vt. 172, 84 A. 567, 1912 Vt. LEXIS 163 (1912).

Sequestered.

Word “sequester” means to set apart, to put aside, to separate. Johnson v. Jones, 86 Vt. 167, 83 A. 1085, 1912 Vt. LEXIS 162 (1912).

State property.

State-owned land and buildings were exempt from real estate taxation by town in which the land and buildings were located. Vermont Division of State Buildings v. Town of Duxbury, 145 Vt. 508, 494 A.2d 142, 1985 Vt. LEXIS 322 (1985).

Real estate owned by the State and leased to a corporation could not be listed as taxable to the corporation in the grand list of the town in which it was located because the fee simple tax was owned by the State. Sherburne Corp. v. town of Sherburne, 145 Vt. 581, 496 A.2d 175, 1985 Vt. LEXIS 332 (1985).

Remedy for financial hardship caused town by requirement that real estate owned by the State and located in the town be set in the town’s grand list to the State, rather than to the party which leases it, lies with the Legislature, not the Supreme Court. Sherburne Corp. v. Town of Sherburne, 145 Vt. 581, 496 A.2d 175, 1985 Vt. LEXIS 332 (1985).

Absent an exception, the land and buildings owned by the State are exempt from local property tax. Magoon v. Board of Civil Authority, Town of Johnson, 140 Vt. 612, 442 A.2d 1276, 1982 Vt. LEXIS 456 (1982).

Use, Determining.

Test of whether property is exempt from taxation under subdiv. (4) of this section is the primary, as distinguished from the incidental, use of the property. Experiment in International Living, Inc. v. Town of Brattleboro, 127 Vt. 41, 238 A.2d 782, 1968 Vt. LEXIS 171 (1968).

For the purpose of exempting property under subdiv. (4) of this section, it is the use of property that must govern decision as to whether it is a college or a public school, and not the purposes set out in the articles of association. Experiment in International Living, Inc. v. Town of Brattleboro, 127 Vt. 41, 238 A.2d 782, 1968 Vt. LEXIS 171 (1968).

Property “used” for public, pious, or charitable uses means the direct and immediate use of property, and not the remote and consequential benefit derived from its use; it is the primary as distinguished from an incidental use of the property that determines whether it is exempt from taxation. Gifford Memorial Hosp. v. Town of Randolph, 119 Vt. 66, 118 A.2d 480, 1955 Vt. LEXIS 92 (1955); President of Middlebury College v. Town of Hancock, 115 Vt. 157, 55 A.2d 194, 1947 Vt. LEXIS 93 (1947).

Word “used” means, as applied to real estate, the direct and immediate use of the property. Grand Lodge of Masons v. Burlington, 84 Vt. 202, 78 A. 973, 1911 Vt. LEXIS 262 (1911).

Cited.

Cited in In re Corp. of Windham College, 34 B.R. 408, 1983 Bankr. LEXIS 5779 (Bankr. D. Vt. 1983); Planned Parenthood of Vermont, Inc. v. City of Burlington, 146 Vt. 348, 503 A.2d 545, 1985 Vt. LEXIS 442 (1985); In re Northeast Washington County Community Health Center, 148 Vt. 113, 530 A.2d 558, 1987 Vt. LEXIS 470 (1987); Subud of Woodstock, Inc. v. Town of Barnard, 169 Vt. 582, 732 A.2d 749, 1999 Vt. LEXIS 95 (1999); Gordon v. Board of Civil Authority, 2006 VT 94, 180 Vt. 299, 910 A.2d 836, 2006 Vt. LEXIS 178 (2006) (mem.).

Law Reviews —

Exemption of educational, philanthropic and religious institutions from state real property taxes, see 64 Harv. L. Rev. 288, 298 (1950).

§ 3802a. Requirement to provide insurance information.

Before April 1 of each year, owners of property exempt from taxation under subdivisions 3802(4)-(6), (9), and (12)-(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.

HISTORY: Added 2013, No. 73 , § 29, eff. June 5, 2013.

History

References in text.

Subdiv. 3802(5), referred to in this section, was repealed by 2013, No. 200 (Adj. Sess.), § 27, effective January 1, 2017.

Subdiv. 3802(13), referred to in this section, was repealed by 2009, No. 1 (Sp. Sess.), § H.28, effective June 2, 2009 and for grand lists prepared for April 1, 2010 and after.

Subdiv. 3802(14) was repealed by 1991, No. 203 (Adj. Sess.), § 1, effective May 27, 1992.

§ 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, 8301-8306, 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;
  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
  3. money, stocks, bonds, mortgages, and other evidences of indebtedness.

HISTORY: Amended 1989, No. 222 (Adj. Sess.), § 33, eff. May 31, 1990; 1997, No. 156 (Adj. Sess.), § 2, eff. April 29, 1998.

History

Source.

1949, No. 27 , § 1. V.S. 1947, § 1050. 1947, No. 20 , § 1. P.L. § 1023. G.L. § 1064. 1912, No. 50 , § 6. 1908, No. 30 , § 4. P.S. § 797. R. 1906, § 728. 1902, No. 20 , § 68. V.S. § 593. 1894, No. 6 , § 2. 1890, No. 3 , § 48. 1884, No. 9 . 1882, No. 1 , § 29.

References in text.

§§ 8301-8306 of this title, referred to in subdiv. (1), were repealed by 1997, No. 156 (Adj. Sess.), § 11, eff. April 29, 1998.

Amendments

—1997 (Adj. Sess.). Deleted former subdiv. (2), listing property used for express or telegraph business, and former subdiv. (5), listing stock in various kinds of businesses; renumbered former subdivs. (3) and (4) as (2) and (3); and deleted “steamboat or” before “transportation” in subdiv. (2) and “belonging to insurance, surety or guaranty companies, and” from the end of subdiv. (3).

—1989 (Adj. Sess.). Subdiv. (1): Added “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” following “title”.

1989 (Adj. Sess.) amendment. 1989, No. 222 (Adj. Sess.), § 44(1), eff. May 31, 1990, provided that the amendment to this section by section 33 of the act shall apply to taxable years beginning on or after Jan. 1, 1990.

ANNOTATIONS

Railroad property.

True test as to whether property owned by a railroad shall be exempt from local taxation under this section is whether use of such property in operating the railroad is of substantial and controlling character, and this is not the same, nor so exacting, as a test based upon necessity, as opposed to convenience. Alburg v. Rutland Railway Corp., 119 Vt. 476, 129 A.2d 506, 1957 Vt. LEXIS 95 (1957).

Under §§ 8281-8286 and 8301-8306 [now repealed] of this title, providing for taxation of property acquired, constructed, or used for railroad purposes and under this section declaring that real and personal estate so used shall not be listed in the grand list, property leased to electric railroad company for 99 years and used exclusively in its business, which is partly within and partly outside the State, is not subject to general taxation, though company may under lease use property for other than railroad purposes, and though it does not appear that it is not intended so to use the property in the future. Frazier v. Slack, 85 Vt. 160, 81 A. 161, 1911 Vt. LEXIS 222 (1911).

Cited.

Cited in In re Corp. of Windham College, 34 B.R. 408, 1983 Bankr. LEXIS 5779 (Bankr. D. Vt. 1983).

Notes to Opinions

Construction with other laws.

This section and § 8211 of this title refer to the same general subject matter and thus are to be read in pari materia. 1964-66 Vt. Op. Att'y Gen. 227.

Railroad property.

Until December 31, 1964, the date when the Rutland Railroad filed its final journal entries with the Interstate Commerce Commission, it still was under the jurisdiction of that body and subject to State tax, but after that date any property it held was not as a railroad operator or owner and was subject to local not State taxation. 1964-66 Vt. Op. Att'y Gen. 227.

To interpret the words “operating a railroad” as used in this section so narrowly as to insist that the railroad must run trains would put this section in open conflict with § 8211 of this title, which authorizes the State to tax a corporation “owning or operating a railroad,” and it does not appear the Legislature intended to construe those words so narrowly. 1964-66 Vt. Op. Att'y Gen. 227.

Subchapter 2. Restricted Exemptions

§ 3831. College, university, or fraternity property.

  1. 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.
  2. 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.
  3. 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.
  4. As used in this section, the term “fraternity” shall also mean “sorority.”

HISTORY: Amended 1957, No. 219 , § 2, eff. July 1, 1961; 1987, No. 215 (Adj. Sess.), § 1, eff. May 27, 1988.

History

Source.

Subsec. (a): V.S. 1947, § 650. 1941, No. 12 , § 1.

Subsec. (b): V.S. 1947, § 651. P.L. § 591. G.L. § 686. P.S. § 497. V.S. § 363. R.L. § 271. G.S. 83, §§ 40, 41. 1857, No. 119 . 1855, No. 43 , §§ 37, 38. 1850, No. 27 .

Amendments

—1987 (Adj. Sess.) Subsec. (a): Added “either in whole or in part” following “taxation” in the second sentence and “except as provided under subsection (c)” preceding “the value fixed” in the third sentence.

Subsec. (c): Added.

Subsec. (d): Added.

—1957. “Appraisal” substituted for “quadrennial appraisal”.

1987 (Adj. Sess.) amendment. 1987, No. 215 (Adj. Sess.), § 2, eff. May 27, 1988, provided that the amendment to this section by that act shall affect taxable years beginning on and after April 1, 1988, except that for the taxable year beginning on April 1, 1988, the amendment to this section shall not apply to any property owned by a college, university or fraternity on April 1, 1988, but not owned by that college, university or fraternity on May 27, 1988.

Notes to Opinions

University of Vermont and State Agricultural College.

The provisions of No. 66 of the Public Acts of 1955 (see note set out under 16 V.S.A. § 2281 ), recognizing and utilizing the University of Vermont and State Agricultural College as a State instrumentality for providing public higher education and providing tax exemption for real and personal property then held or owned or thereafter acquired, superseded the provisions of this section, so that land acquired by the said institution for educational purposes would be exempt from taxation unless used for commercial or investment purposes, notwithstanding provisions of this section. 1964-66 Vt. Op. Att'y Gen. 291.

ANNOTATIONS

Construction.

The intent under this section to exclude the real property of a college, university, or fraternity from the real estate taxation exemption of § 3802 of this title is clear. Stowe Preparatory School, Inc. v. Town of Stowe, 124 Vt. 392, 205 A.2d 544, 1964 Vt. LEXIS 120 (1964).

In view of language of 1941 Acts and Resolves No. 12, enacting this section, the legislative trend toward limiting and curtailing exemptions from taxation, and other indications of legislative intent, this section is one of universal application and repeals previous special act so far as the two are repugnant. Troy Academy v. Town of Poultney, 115 Vt. 480, 66 A.2d 2, 1949 Vt. LEXIS 86 (1949).

Secondary schools.

Where a school is devoted to college preparatory instruction and does not offer any courses at the college or university level, such school is not a college or university within the meaning of this section and its real property is therefore exempt from taxation by virtue of § 3802(4) of this title, even though the articles of association of the school do not preclude it from offering courses at the college or university level. Stowe Preparatory School, Inc. v. Town of Stowe, 124 Vt. 392, 205 A.2d 544, 1964 Vt. LEXIS 120 (1964).

Use of property.

It is the use of the property that must govern decision as to whether it is a college or public school for purposes of this section and § 3802(4) of this title, and not the purposes set out in the articles of association of the institution. Experiment in International Living, Inc. v. Town of Brattleboro, 127 Vt. 41, 238 A.2d 782, 1968 Vt. LEXIS 171 (1968).

Law Reviews —

Exemption of education, philanthropic and religious institutions from state real property taxes, see 64 Harv. L. Rev. 288, 293 (1950).

§ 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:
    1. buildings and land owned and occupied by a health, recreation, and fitness organization that is:
      1. exempt from taxation under 26 U.S.C. § 501(c) (3);
      2. used its income entirely for its exempt purpose; and
      3. promotes exercise and healthy lifestyles for the community and serve citizens of all income levels; and
    2. 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.

HISTORY: Amended 1959, No. 187 ; 1965, No. 71 ; 2013, No. 174 (Adj. Sess.), § 55, eff. Jan. 1, 2015; 2017, No. 113 (Adj. Sess.), § 187.

History

Source.

1955, No. 178 . V.S. 1947, § 652. 1935, No. 21 , § 1. P.L. § 592. 1933, No. 10 . G.L. § 687. 1917, Nos. 39, 40. 1910, No. 32 , § 1. P.S. § 498. 1904, No. 25 , § 1. V.S. § 364. R.L. § 272. 1880, No. 81 , § 1.

References in text.

In subdiv. (1), “after passage of this act” first appeared in the amendment by 1959, No. 187 which became effective July 1, 1959.

Revision note

—2021. In subdiv. (2), substituted “this subdivision” for “this subsection” to correct an error in the reference.

Amendments

—2017 (Adj. Sess.). Subdiv. (1): Substituted “May 20, 1959” for “passage of this act”.

—2013 (Adj. Sess.). Subdiv. (7): Inserted “, and except for the following types of property;” at the end.

Subdivs. (7)(A) and (7)(B): Added.

—1965. Added after the words “kept and used” the words “as a parking lot not used to produce income”.

—1959. Subdiv. (1): Added.

Subdiv. (2): “Land and buildings” changed to “Real estate” and provisions relating to outbuildings added.

Subdiv. (6): “Lands, buildings, and tangible personal property” changed to “Real and personal property”, added reference to diagnostic and treatment center and provided for exception upon vote of municipality.

Subdiv. (7): “Lands, buildings and tangible personal property” changed to “Real and personal property”.

Applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70(16) provides that Secs. 54 (shared equity housing) [which amended § 3481 of this title], 55 (health and recreation property) [which amended this section], 56 (town voted exemption) [which enacted § 3839 of this title], and 57 (education property tax exemption) [which amended § 5401(10)(K) of this title] shall take effect on January 1, 2015 and apply to property appearing on grand lists lodged in 2015 and after.

Notes to Opinions

Glebe lands.

Acts of Legislature could not constitutionally change present status of lease or glebe lands for purposes of taxation. 1944-46 Vt. Op. Att'y Gen. 161.

Institution.

The word “institution” when used in the sense of this section is descriptive of an establishment or place where the business or operations of a society or association is carried on. 1964-66 Vt. Op. Att'y Gen. 211.

The Legislature, in using the word “institution” in subdiv. (5) of this section, intended to refer to such places as Waterbury State Hospital, Brandon Training School, and Windsor State Prison. 1964-66 Vt. Op. Att'y Gen. 211.

State-owned property.

The provisions of this section were never intended by the Legislature to apply to railroad property acquired by the State to preserve continued railroad service on the western side of the state. 1966-68 Vt. Op. Att'y Gen. 211.

This section does not apply to State-owned railroad property, irrespective of whether such property is being used for railroad purposes or not, and such property is exempt from local taxation. 1966-68 Vt. Op. Att'y Gen. 211.

When State property connected with the institutions mentioned in subdiv. (5) of this section is located outside the town where the principal institution is located, this section allows the bordering town to tax State property. 1966-68 Vt. Op. Att'y Gen. 211.

State-owned Weeks School property within the city of Vergennes is exempt from taxation and any State-owned property used in connection with or as an adjunct to the Weeks School lying outside the city of Vergennes is subject to local taxation. 1946 Vt. Op. Att'y Gen. 224.

Tenement house, owned by State, located in town where Vermont sanatorium is situated, used directly in connection with the sanatorium and acquired prior to April 10, 1935, is exempt from taxation under § 3802 of this title and does not come under any exception of this section. 1938-40 Vt. Op. Att'y Gen. 335.

Exception in this section does not apply to real estate owned by the State highway department, since that department is not an institution within the meaning of this section. 1934 Vt. Op. Att'y Gen. 217.

ANNOTATIONS

Alcoholic treatment.

Land and buildings leased rent-free for an alcoholic treatment and rehabilitation center were used for a public health or recreational purpose within meaning of this section, providing that tax exemption for real and personal property granted, used, or sequestered for public, pious, or charitable uses shall not be construed as exempting property used primarily for health or recreational purposes, unless the local voters vote to exempt the property, and property owner was not entitled to an exemption where no vote had been held. Fletcher Farm, Inc. v. Town of Cavendish, 137 Vt. 582, 409 A.2d 569, 1979 Vt. LEXIS 1079 (1979).

Burden of proof.

Taxpayer who claims exemption from taxation for property sequestered or used for public use must show that the use of the subject property confers a benefit upon an indefinite class of persons who are part of the public and that this section, restricting such exemptions, is inapplicable. Ski-Lan Gymnastics and Performing Arts Educational Foundation, Inc. v. City of Rutland, 143 Vt. 294, 465 A.2d 1363, 1983 Vt. LEXIS 522 (1983).

Construction.

The more specific and later provision, subdiv. (7), which clearly makes property used primarily for health purposes taxable, controls over the more general and vague term “home” within subdivs. (2) and (6), which can describe virtually any facility in which persons stay overnight for any reason. Central Vermont Hospital, Inc. v. Town of Berlin, 164 Vt. 456, 672 A.2d 474, 1995 Vt. LEXIS 133 (1995).

Construction with other laws.

In keeping with the relatively broad terminology used in describing entitlement to some exemption under § 3832 (4) of this title exempting property used for public, pious, or charitable uses, the provision of this section limiting the exemption from taxation should be broadly construed to complement the entitlement language. Our Lady of Ephesus House of Prayer, Inc. v. Town of Jamaica, 2005 VT 16, 178 Vt. 35, 869 A.2d 145, 2005 Vt. LEXIS 13 (2005).

This section, providing exceptions to tax exemption granted to real estate granted, sequestered, or used for public, pious, or charitable uses, applies only to exemption for public, pious, or charitable uses found in subdiv. 3802(4) of this title, and is not applicable to State-owned land and buildings exempt under subdiv. 3802(1) of this title. Vermont Division of State Buildings v. Town of Duxbury, 145 Vt. 508, 494 A.2d 142, 1985 Vt. LEXIS 322 (1985).

Fraternal orders.

Real estate of fraternal order is not exempt from taxation by virtue of provision of this section exempting property exclusively used for the support of hospitals and asylums where building is not at present used for support of such institutions. Grand Lodge of Masons v. Burlington, 84 Vt. 202, 78 A. 973, 1911 Vt. LEXIS 262 (1911).

Health or recreation.

Phrase “for health purposes” in subdiv. (7) of this section cannot be read to include hospital property; such an interpretation would lead to the irrational result of rendering portions of subdivs. (2) and (6) of this section meaningless. Medical Center Hospital of Vermont, Inc. v. City of Burlington, 152 Vt. 611, 566 A.2d 1352, 1989 Vt. LEXIS 190 (1989).

Tax-exempt status granted to health center pursuant to subdiv. (7) of this section was a gratuity, rather than a contract, and therefore subject to revocation by a subsequent vote at town meeting. In re Northeast Washington County Community Health Center, 148 Vt. 113, 530 A.2d 558, 1987 Vt. LEXIS 470 (1987).

Property that was granted or sequestered for a public use, but used primarily for recreational purposes, was subject to taxation, since the public use exemption under subdiv. 3802(4) of this title was precluded by subdiv. (7) of this section. Middlebury College v. Town of Hancock, 147 Vt. 259, 514 A.2d 1061, 1986 Vt. LEXIS 405 (1986).

Taxpayer’s property, which was used primarily for family planning, specifically for the provision of contraceptive devices, was not used “primarily for health . . . purposes” within the meaning of subdiv. (7) of this section, since the word “health” in subdiv. (7) refers principally to a condition of being free from disease or injury, not activities related to the prevention of pregnancy. Planned Parenthood of Vermont, Inc. v. City of Burlington, 146 Vt. 348, 503 A.2d 545, 1985 Vt. LEXIS 442 (1985).

Home.

The term “home” in subdivs. (2) and (6) does not include nursing homes. Central Vermont Hospital, Inc. v. Town of Berlin, 164 Vt. 456, 672 A.2d 474, 1995 Vt. LEXIS 133 (1995).

The way to harmonize subdivs. (2) and (6) with subdiv. (7) is to conclude that “home” does not include property used primarily for health purposes. Central Vermont Hospital, Inc. v. Town of Berlin, 164 Vt. 456, 672 A.2d 474, 1995 Vt. LEXIS 133 (1995).

When it first used the term “home,” the Legislature did not intend it to mean a medical care provider. Central Vermont Hospital, Inc. v. Town of Berlin, 164 Vt. 456, 672 A.2d 474, 1995 Vt. LEXIS 133 (1995).

Municipal electric plants.

Fact that provision that property of municipal electric light plants, when located outside of town wherein municipality owning it is situated, shall not be exempt from taxation affects only two or three municipalities in the State, while a circumstance to be considered on question of violation of the Equality Clause of the Fourteenth Amendment, is by no means controlling, the fundamental question being whether the classification rests upon a rational foundation or is arbitrary, oppressive, whimsical, or visionary. Village of Hardwick v. Town of Wolcott, 127 A. 886, 1925 Vt. LEXIS 193 (Vt. 1925).

Ownership of home or hospital.

Although hospital and company which owned nursing home facility were affiliated through a common holding company, there was insufficient factual development to conclude that irrespective of the formal corporate arrangements, hospital really owned or kept the facility within the meaning of subdivs. (2) and (6). Central Vermont Hospital, Inc. v. Town of Berlin, 164 Vt. 456, 672 A.2d 474, 1995 Vt. LEXIS 133 (1995).

Simply because nursing home facility was a treatment center, it was not necessarily a “home or hospital” within the meaning of this section because although it provided nursing care for hospital patients and was convenient to the hospital, nursing care facility accepted non- hospital patients and was not essential to the operation of hospital and if nursing home facility did not exist, patients in need of long-term care would either stay in hospital or be transferred to another nursing facility. Central Vermont Hospital, Inc. v. Town of Berlin, 164 Vt. 456, 672 A.2d 474, 1995 Vt. LEXIS 133 (1995).

Because nursing home facility was not owned by a home or a hospital, and clearly was not an orphanage, it did not come within subdiv. (2) or (6); thus, there was no reason to read facility out of subdiv. (7) and by virtue of subdiv. (7), it was not tax exempt. Central Vermont Hospital, Inc. v. Town of Berlin, 164 Vt. 456, 672 A.2d 474, 1995 Vt. LEXIS 133 (1995).

Pious uses.

It is self-evident that the qualifying criteria set forth in American Museum and its progeny for public or charitable uses have no application to the pious-use exemption from adverse possession. The question must turn generally, therefore, on whether a property meets the standard for pious use subject to the more limiting requirements of the property tax exemption. Roy v. Woodstock Cmty. Trust, 2013 VT 100, 2013 VT 100A, 195 Vt. 427, 94 A.3d 530, 2013 Vt. LEXIS 125 (2014).

Qualifying criteria set forth in American Museum and its progeny for public or charitable uses have no application to the pious-use exemption from adverse possession claims or prescriptive easements. The question must turn generally, therefore, on whether a property meets the standard for “pious” use, subject to the more limiting requirements of the tax exemption for such uses. Roy v. Woodstock Cmty. Trust, Inc., 2013 VT 100A, 94 Vt. 530, 195 A.3d 427, 2013 Vt. LEXIS 106 (Nov. 1, 2013).

Under the plain meaning of the provision limiting the exemption from taxation of property used for public, pious, or charitable uses, it does not matter whether its use is exempt because it is public or pious; in either case, if taxpayer is a religious society, the extent of its tax exemption must be determined under the statute. Our Lady of Ephesus House of Prayer, Inc. v. Town of Jamaica, 2005 VT 16, 178 Vt. 35, 869 A.2d 145, 2005 Vt. LEXIS 13 (2005).

Even though taxpayer argued that it was not “religious” within the meaning of the provision limiting the exemption from taxation of property used for public, pious, or charitable uses because it did not have established vows or tenets and did not engage in teaching or indoctrination, its prior statements that it was “organized exclusively to provide facilities for the personal growth of individuals through reflection and prayer in the Roman Catholic tradition” and that it was a “not-for-profit religious organization established for the purpose of providing a religious house of prayer” could be relied upon by the Superior Court in reaching its own conclusion about the nature of the organization. Our Lady of Ephesus House of Prayer, Inc. v. Town of Jamaica, 2005 VT 16, 178 Vt. 35, 869 A.2d 145, 2005 Vt. LEXIS 13 (2005).

Taxpayer’s lack of formal dogma did not prevent it from being a religious society. Our Lady of Ephesus House of Prayer, Inc. v. Town of Jamaica, 2005 VT 16, 178 Vt. 35, 869 A.2d 145, 2005 Vt. LEXIS 13 (2005).

Taxpayer failed in its argument that it could not be considered a society because it has no members; its 17 trustees constituted a society under the broad definition of the term. Our Lady of Ephesus House of Prayer, Inc. v. Town of Jamaica, 2005 VT 16, 178 Vt. 35, 869 A.2d 145, 2005 Vt. LEXIS 13 (2005).

Apartments reserved for visiting clergy could not be construed as a parsonage because visiting clergy were not in residence on a permanent basis and did not conduct pastoral duties or minister to a congregation. Our Lady of Ephesus House of Prayer, Inc. v. Town of Jamaica, 2005 VT 16, 178 Vt. 35, 869 A.2d 145, 2005 Vt. LEXIS 13 (2005).

Subdiv. 3802(4) of this title and this section, exempting real estate owned, used, or kept for pious uses from taxation, did not exempt property owned by private individuals who leased it to a church that used it exclusively for religious purposes. In re Abbey Church of St. Andrew, 145 Vt. 227, 485 A.2d 1263, 1984 Vt. LEXIS 584 (1984).

Public use.

Provider of residential and instructional services to troubled adolescents was not subject to limitation on “public use” exemption under subdiv. (7) of this section; primary mission of provider was to prepare troubled youths for assimilation into society, not to treat specific physical or mental problems. Kingsland Bay School, Inc. v. Town of Middlebury, 153 Vt. 201, 569 A.2d 496, 1989 Vt. LEXIS 224 (1989).

State-owned property.

Where railroad leased part of property at a nominal rent to a large dealer in grain, flour, and feed, who used premises as a storehouse on which he was assessed a local tax, and which he used to store produce coming to him and going out over the railroad, and where premises were adapted for use in connection with the railroad, enabled the railroad company to make prompt and convenient delivery of goods to lessee, facilitated delivery of goods from him to railroad company, and relieved congested traffic in the railroad yards, the leased land was, as matter of law, used for railroad purposes and liable only to State taxation. Montpelier v. Central Vermont Ry., 89 Vt. 36, 93 A. 1047, 1915 Vt. LEXIS 183 (1915).

Summer camps.

Church camps are not among the real estate owned by a religious society that the Legislature has made expressly eligible for the pious-use exemption, and describing a church camp as a “church edifice” stretches the statutory term far beyond its ordinary meaning. Accordingly, a summer camp owned by a church was not exempt from taxation. Brownington Ctr. Church of Brownington v. Town of Irasburg, 2013 VT 99, 195 Vt. 196, 87 A.3d 502, 2013 Vt. LEXIS 103 (2013).

Property the primary use of which was a summer recreational nonprofit camp for children came under this section’s provision that there shall be no property tax exemption for real and personal property used for public, pious, or charitable purposes if it is used primarily for health or recreational purposes, unless the town votes to allow such exemption. In re Aloha Foundation, Inc., 134 Vt. 239, 360 A.2d 74, 1976 Vt. LEXIS 640 (1976).

Timely filing.

A party’s decision to file a notice of appeal in a particular court is not considered critical to the purposes served by the appellate rule; the intent behind such a decision, assuming that it can be ascertained, should not determine whether a litigant’s right to appeal has been preserved. Casella Construction, Inc. v. Department of Taxes, 2005 VT 18, 178 Vt. 61, 869 A.2d 157, 2005 Vt. LEXIS 20 (2005).

Law Reviews —

Exemption of educational, philanthropic and religious institutions from state real property taxes, see 64 Harv. L. Rev. 288, 298 (1950).

§ 3833. Repealed. 1979, No. 203 (Adj. Sess.), § 5, eff. May 7, 1980.

History

Former § 3833. Former § 3833, relating to State flood control projects, was derived from V.S. 1947, § 653; 1935, No. 19 , § 1 and amended by 1967, No. 348 (Adj. Sess.), § 2; 1957, No. 219 , § 2.

§ 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.

History

Source.

V.S. 1947, § 655. P.L. § 594. G.L. § 689. P.S. § 499. 1898, No. 14 , §§ 1, 2. V.S. § 365. 1892, No. 9 , § 1. 1890, No. 16 , § 1. 1884, No. 6 , § 1. R.L. § 273. 1880, No. 128 , § 1. 1870, No. 78 . 1869, No. 26 . 1867, No. 60 .

Revision note—

Changed “Manufactories” to “Factories” in the section heading to eliminate obsolete word.

ANNOTATIONS

Constitutionality.

Section is constitutional. Spaulding v. Rutland, 110 Vt. 186, 3 A.2d 556, 1939 Vt. LEXIS 126 (1939); Rixford Mfg. Co. v. Town of Highgate, 102 Vt. 1, 144 A. 680, 1929 Vt. LEXIS 135 (1929); Colton & More v. City of Montpelier, 71 Vt. 413, 45 A. 1039, 1899 Vt. LEXIS 207 (1899).

Towns and villages are governmental agencies, and as such are peculiarly subject to legislative control and subordination; when not restrained by the Constitution, as it is not in this State, the Legislature, having the power to tax, can confer that power on municipalities, including the power to exempt from taxation, in such measure as it pleases, and if it confers such power, the exercise of such right by the municipality in a legal way has the effect of statutory law. Caverly-Gould Co. v. Village of Springfield, 83 Vt. 396, 76 A. 39, 1910 Vt. LEXIS 208 (1910).

Assessments.

Exemption of manufacturing plant from taxation for specified time precludes incorporated village in that town from assessing and collecting general taxes on such property during the time so specified, but not from the levy of special assessments thereon for municipal improvements. Caverly-Gould Co. v. Village of Springfield, 83 Vt. 396, 76 A. 39, 1910 Vt. LEXIS 208 (1910).

Capital exempted.

If town votes to exempt capital of manufacturing corporation from taxation under the provisions of this section, the shares of its stockholders are thereby exempted. Richardson v. St. Albans, 72 Vt. 1, 47 A. 100, 1899 Vt. LEXIS 112 (1899).

Commencement of business.

Resumption of business, after almost complete destruction of factory and consequent entire stoppage of its operation, is to be regarded as a “commencement of business” within meaning of term as used in this section. Rixford Mfg. Co. v. Town of Highgate, 102 Vt. 1, 144 A. 680, 1929 Vt. LEXIS 135 (1929).

Construction of vote.

In construing vote of municipality under this section, same rules should be applied as are applied to construction of statute itself, since vote is merely part of legislative process delegated to municipality for purposes of determining whether statute should be applied. Spaulding v. Rutland, 110 Vt. 186, 3 A.2d 556, 1939 Vt. LEXIS 126 (1939).

Under vote of town that any manufacturing establishment acquiring specific property be exempted from taxation for a period of five years provided that employment be maintained therein for not less than 40 people, purchasers of property complied with the offer and were entitled to the exemption when they leased inseparable portion thereof at lower rental than was customary, and lessees established manufacturing business and employed more than 40 people. Spaulding v. Rutland, 110 Vt. 186, 3 A.2d 556, 1939 Vt. LEXIS 126 (1939).

Vote “to exempt from taxation for a term not exceeding five years all property invested in manufacturing purposes” is construed as for five years “from the commencement of business.” Bixby v. Roscoe, 85 Vt. 105, 81 A. 255, 1911 Vt. LEXIS 217 (1911).

Although legislative contracts exempting from taxation are to be construed most favorably to the State when their meaning is reasonably doubtful, yet, if not reasonably doubtful, they should be construed so as to effectuate the intention of the parties, just as are contracts between private persons. Caverly-Gould Co. v. Village of Springfield, 83 Vt. 396, 76 A. 39, 1910 Vt. LEXIS 208 (1910).

When by legislative enactment or authorized municipal vote, exemption from taxation is made to depend on continuance of business, use of property for designated purposes, or other conditions, exemption is forfeited on condition broken. Caverly-Gould Co. v. Village of Springfield, 83 Vt. 396, 76 A. 39, 1910 Vt. LEXIS 208 (1910).

Nature of exemptions.

Tax exemptions granted under provisions permitting municipality by vote to grant such exemptions to certain types of property for limited period are governed by law of contracts, the vote being the offer, which becomes a valid contract when accepted and acted upon, provided conditions and requirements are complied with. Spaulding v. Rutland, 110 Vt. 186, 3 A.2d 556, 1939 Vt. LEXIS 126 (1939).

An exemption of manufacturing establishment from taxation by a town, regularly granted and accepted, and supported by a consideration, is a binding contract. Rixford Mfg. Co. v. Town of Highgate, 102 Vt. 1, 144 A. 680, 1929 Vt. LEXIS 135 (1929).

Where a person removed his manufacturing plant to a town and there operated it in reliance on the town’s vote, under V.S. § 365, “to exempt from taxation for a term not exceeding five years all property invested in manufacturing purposes,” the exemption could not be withdrawn to his prejudice during the five years from the commencement of that business there. Rixford Mfg. Co. v. Town of Highgate, 102 Vt. 1, 144 A. 680, 1929 Vt. LEXIS 135 (1929); Bixby v. Roscoe, 85 Vt. 105, 81 A. 255, 1911 Vt. LEXIS 217 (1911).

Town that has granted exemption of manufacturing establishment from taxation cannot thereafter, within term of exemption, rescind resolution and withdraw exemption to prejudice of one who has accepted offer specifically made therein. Rixford Mfg. Co. v. Town of Highgate, 102 Vt. 1, 144 A. 680, 1929 Vt. LEXIS 135 (1929); Bixby v. Roscoe, 85 Vt. 105, 81 A. 255, 1911 Vt. LEXIS 217 (1911).

Vote of a town “to exempt from taxation for a period of ten years all manufacturing establishments investing a capital of five thousand dollars, which may be established and put into operation during the next twelve months,” was authorized by this section, which did not require a special vote to exempt each particular concern to which the exemption was accorded, and the vote was in the nature of an offer that, when seasonably accepted and acted upon by anyone complying with its requirements with a view to the exemption, resulted in a contract binding on the town. Caverly-Gould Co. v. Village of Springfield, 83 Vt. 396, 76 A. 39, 1910 Vt. LEXIS 208 (1910).

Property exempted.

Tax exemption may be granted by vote of municipality under provisions of this section in respect to building already in existence if it is purchased and repaired as well as in respect to new building. Spaulding v. Rutland, 110 Vt. 186, 3 A.2d 556, 1939 Vt. LEXIS 126 (1939).

Use of term “manufacturing establishments” in conjunction with “quarries” and “mines” indicates that it is property, rather than owner, which may be exempted from taxation under this section. Spaulding v. Rutland, 110 Vt. 186, 3 A.2d 556, 1939 Vt. LEXIS 126 (1939).

Exemption applied to mill constructed of saw logs, but not to logs themselves. Westmore Lumber Co. v. Orne, 48 Vt. 90, 1875 Vt. LEXIS 83 (1875).

Purpose.

Section has for its principal object not to aid and benefit private persons for private ends, but to benefit public at large by ultimately increasing resources of State and its taxable property through establishment of new industries. Spaulding v. Rutland, 110 Vt. 186, 3 A.2d 556, 1939 Vt. LEXIS 126 (1939); Colton & More v. City of Montpelier, 71 Vt. 413, 45 A. 1039, 1899 Vt. LEXIS 207 (1899).

Remedies.

In suit to enjoin calling of special town meeting to see whether town would vote to rescind its previous action, there being no allegation that action adverse to corporation was threatened at such town meeting, and no facts being set forth whereby it could be determined whether such an outcome was certain or even probable, petition was prematurely brought, and petitioner was not entitled to injunctive relief prayed for. Rixford Mfg. Co. v. Town of Highgate, 102 Vt. 1, 144 A. 680, 1929 Vt. LEXIS 135 (1929).

Cited.

Cited in In re Northeast Washington County Community Health Center, 148 Vt. 113, 530 A.2d 558, 1987 Vt. LEXIS 470 (1987).

§ 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.

HISTORY: Amended 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 656. P.L. § 595. G.L. § 690. 1917, No. 99 .

Amendments

—1977. Substituted “director” for “commissioner”.

§ 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.

HISTORY: Amended 1961, No. 255 , eff. July 31, 1961; 2003, No. 76 (Adj. Sess.), § 31.

History

Source.

1957, No. 77 . 1955, No. 130 . 1953, No. 15 . V.S. 1947, § 657. P.L. § 596. 1929, No. 19 , § 1. 1923, No. 18 . G.L. § 691. 1917, No. 38 .

Amendments

—2003 (Adj. Sess.). Substituted “$75,000.00” for “$15,000.00” and “12 months” for “twelve months” in two places in the first sentence.

—1961. Maximum amount was raised from $5,000 to $15,000, maximum period was reduced from 5 to 3 years, and provision for application to buildings constructed or put in process 12 months preceding meeting was inserted.

ANNOTATIONS

Amendment construed.

Section did not apply to building erected for occupancy by tenants before amendment by Act 1929, No. 19 , wherein exemption was made to apply to certain dwelling houses erected after specified date, whether for sale or rent. Winooski v. Companion, 105 Vt. 1, 162 A. 795, 1932 Vt. LEXIS 179 (1932).

Cited.

Cited in In re Northeast Washington County Community Health Center, 148 Vt. 113, 530 A.2d 558, 1987 Vt. LEXIS 470 (1987).

§ 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.

History

Source.

V.S. 1947, § 658. P.L. § 597. 1933, No. 157 , § 538. 1929, No. 20 , § 1.

CROSS REFERENCES

Exemption of lands purchased by municipal governments for airport purposes, see 5 V.S.A. § 754 .

ANNOTATIONS

Cited.

Cited in In re Northeast Washington County Community Health Center, 148 Vt. 113, 530 A.2d 558, 1987 Vt. LEXIS 470 (1987).

§ 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.

History

Source.

V.S. 1947, § 660. P.L. § 598. 1933, No. 157 , § 539. 1919, No. 26 . G.L. § 692. 1910, No. 34 , § 1.

ANNOTATIONS

Cited.

Cited in In re Northeast Washington County Community Health Center, 148 Vt. 113, 530 A.2d 558, 1987 Vt. LEXIS 470 (1987).

§ 3839. Municipally owned lakeshore property.

  1. 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.
  2. 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.

HISTORY: Added 2013, No. 174 (Adj. Sess.), § 56.

History

Former § 3839. Former § 3839, which related to the method of setting certain exemptions in the grand list, was derived from 1957, No. 221 , § 2; V.S. 1947, § 661; P.L. § 599; G.L. § 693; 1917, No. 254 , § 665; P.S. § 499. This section was formerly repealed by 1995, No. 169 (Adj. Sess.), § 7(a), eff. May 15, 1996.

Applicability of 2013 (Adj. Sess.) enactment. 2013, No. 174 (Adj. Sess.), § 70(16) provides that §§ 54 (shared equity housing) [which amended § 3481 of this title], 55 (health and recreation property) [which amended § 3832(7) of this title], 56 (town voted exemption) [which enacted this section], and 57 (education property tax exemption) [which amended § 5401(10)(K) of this title] shall take effect on January 1, 2015 and apply to property appearing on grand lists lodged in 2015 and after.

§ 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.

HISTORY: Amended 1961, No. 24 , eff. March 17, 1961; 1975, No. 156 (Adj. Sess.), § 1.

History

Source.

V.S. 1947, § 662. P.L. § 600. 1927, No. 17 . G.L. § 694. 1915, No. 30 , § 1. P.S. § 500. 1906, No. 26 , § 1.

Amendments

—1975 (Adj. Sess.) Inserted reference to ambulance or rescue companies.

—1961. Inserted reference to volunteer fire companies.

ANNOTATIONS

Construction with other laws.

This section and § 3802(4) must be construed with reference to each other as parts of one system and are to be construed most strongly against one who claims their benefit, but such construction must be reasonable and not such as to defeat their purposes. New York Institute for Education of Blind v. Town of Wolcott, 128 Vt. 280, 262 A.2d 451, 1970 Vt. LEXIS 223 (1970).

As this section was enacted later than § 3802(4), the general exceptions of the earlier statute are modified and made less inclusive by the later one. New York Institute for Education of Blind v. Town of Wolcott, 128 Vt. 280, 262 A.2d 451, 1970 Vt. LEXIS 223 (1970).

If the facts of a given case put the case within this section, the provisions of this section control over § 3802(4) of this title and there can be no tax exemption unless the town votes one. New York Institute for Education of Blind v. Town of Wolcott, 128 Vt. 280, 262 A.2d 451, 1970 Vt. LEXIS 223 (1970).

If facts are such that a given case falls within this section, the provisions of this section, rather than § 3802 of this title, are controlling and there can be no exemption from taxation without vote of town to that effect. Fort Orange Council v. French, 119 Vt. 378, 125 A.2d 835, 1956 Vt. LEXIS 119 (1956).

Where a Boy Scout organization owning real estate extended the use of it to Boy Scouts of other areas, such extension would not remove the organization from the coverage of this section and the real estate would continue to be taxable. Fort Orange Council v. French, 119 Vt. 378, 125 A.2d 835, 1956 Vt. LEXIS 119 (1956).

Real estate of fraternal order is not exempt unless town so votes, since the general exemption of § 3802 of this title does not apply to such property. Grand Lodge of Vermont, F. & A.M. v. City of Burlington, 104 Vt. 515, 162 A. 368, 1932 Vt. LEXIS 174 (1932).

Subdiv. 3802(4) and this section are in pari materia, since both relate to exemption of property from taxation, and are to be construed with reference to each other as parts of one system. Grand Lodge of Vermont, F. & A.M. v. City of Burlington, 104 Vt. 515, 162 A. 368, 1932 Vt. LEXIS 174 (1932).

Use.

The benefits of the real and personal property of nonprofit corporation which instructed children born blind or who became blind were “conferred upon an indefinite class of persons who are part of the public” within the meaning of § 3802(4) of this title, and the property was not used exclusively for the purposes of the organization within the meaning of this section, so that the corporation was entitled to a public use exemption under § 3802(4) of this title and this section was inapplicable. New York Institute for Education of Blind v. Town of Wolcott, 128 Vt. 280, 262 A.2d 451, 1970 Vt. LEXIS 223 (1970).

Cited.

Cited in In re Northeast Washington County Community Health Center, 148 Vt. 113, 530 A.2d 558, 1987 Vt. LEXIS 470 (1987); American Museum of Fly Fishing, Inc. v. Town of Manchester, 151 Vt. 103, 557 A.2d 900, 1989 Vt. LEXIS 21 (1989).

Notes to Opinions

Constitutionality.

This section is not unconstitutional for authorizing tax advantages for various clubs that might include private clubs having discriminatory membership requirements. 1970-72 Vt. Op. Att'y Gen. 260.

§ 3841. Repealed. 1995, No. 169 (Adj. Sess.), § 7(b), eff. May 15, 1996.

History

Former § 3841. Former § 3841, which related to the improvement of unoccupied or pasturage land, was derived from V.S. 1947, § 663; P.L. § 601; G.L. § 695; P.S. § 501; V.S. § 366; 1892, No. 10 , § 1.

§ 3842. Repealed. 1995, No. 169 (Adj. Sess.), § 7(c), eff. May 15, 1996.

History

Former § 3842. Former § 3842, which related to the method of setting the listed value in the grand list, was derived from 1957, No. 221 , § 3; V.S. 1947, § 664; P.L § 602; G.L. § 696; P.S. § 502; V.S. § 367; 1892, No. 10 , § 2.

§ 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.

HISTORY: Added 1969, No. 268 (Adj. Sess.), § 1, eff. April 8, 1970; amended 2007, No. 190 (Adj. Sess.), § 6, eff. June 6, 2008.

History

Amendments

—2007 (Adj. Sess.). Section amended generally.

Transition rule. 2007, No. 190 (Adj. Sess.), § 8 provides: “A federally subsidized low or moderate income housing project agreement entered into under 32 V.S.A. § 3843 prior to April 1, 2008, shall continue to be exempt from property tax to the extent and for the period provided for in the agreement; and shall affect the education property tax grand list and reduce the total education property tax due to the state from that municipality; provided, however, that beginning with fiscal year 2010, the agreement shall not affect the education property tax grand list nor reduce the total education property tax due to the state from that municipality, and that agreement shall be subject to the provisions of 32 V.S.A. § 5404a(d) for assessment of a separate tax on the municipality’s municipal grand list.”

§ 3844. Repealed. 2007, No. 190 (Adj. Sess.), § 7, eff. May 1, 2008.

History

Former § 3844. Former § 3844, relating to allowing permissive referendum to disapprove action by the town’s selectboard, was derived from 1969, No. 268 (Adj. Sess.), § 2.

§ 3845. Renewable energy sources.

  1. 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.
  2. 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.

HISTORY: 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.

History

Revision note

—2017. In the second sentence, substituted “Public Utility Commission” for “Public Service Board” in accordance with 2017, No. 53 , § 12.

Revision note—. 2013, No. 174 (Adj. Sess.), § 28 and 2013, No. 99 (Adj. Sess.), § 8 both amended subsec. (b).

Editor’s note

—2014. The text of subsec. (b) is based on the harmonization of two amendments. During the 2013 Adjourned Session, subsec. (b) was amended twice, by Act Nos. 99 and 174, resulting in two versions of this subsection. In order to reflect all the changes enacted by the Legislature during the 2013 Adjourned Session, the text of Act Nos. 99 and 174 was merged to arrive at a single version of this subsection. The changes that each of the amendments made are described in the amendment notes set out below.

Amendments

—2013 (Adj. Sess.). Section heading: Act No. 174 substituted “Renewable” for “Alternate” at the beginning.

Subsec. (a): Act No. 174 substituted “renewable” for “alternate” preceding “energy sources” in the first sentence.

Subsec. (b): Act No. 174 amended generally in a manner not inconsistent with the amendments in Act No. 99. In addition, Act No. 99 substituted “ 30 V.S.A. § 8010 ” for “ 30 V.S.A. § 219a ”, eff. January 1, 2017.

Subsec. (c): Act No. 174 substituted “less than 50kW” for “equal to or less than 10 kW” following “capacity”.

—2007 (Adj. Sess.). Subsec. (b): Inserted “net metering systems regulated by the public service board under 30 V.S.A. § 219a ” following “methane”.

Effective date of 2013 (Adj. Sess.) amendment. 2013, No. 99 (Adj. Sess.), § 10(e) provides: “Secs. 6 (application form) [which amended 30 V.S.A. § 8007 ], 7 (Vermont village green renewable project) [which amended 30 V.S.A. § 8104 ], 8 (alternate energy sources) [which amended this section], and 9 (tangible personal property) [which amended § 9741 of this title] shall take effect on January 1, 2017.

Effective date and applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70(8) provides that Secs. 26-29 (solar plant exemptions and valuation) [which amended this section and §§ 3802(17), 3845, and 8701 of this title] and 32 (valuation of natural gas and petroleum infrastructure) [which amended § 3621 of this title] shall take effect on January 1, 2015 and apply to property appearing on grand lists lodged in 2015 and after.

ANNOTATIONS

Cited.

Cited in In re Northeast Washington County Community Health Center, 148 Vt. 113, 530 A.2d 558, 1987 Vt. LEXIS 470 (1987).

§ 3846. Farmland appraisal contracts.

  1. 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.
  2. 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).
  3. 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.
  4. 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.

HISTORY: Added 1977, No. 105 , § 24.

CROSS REFERENCES

Agricultural lands and forestlands use tax reimbursement to municipalities, see § 3760 of this title.

ANNOTATIONS

Construction with other laws.

The legislative scheme regarding municipal tax stabilization plans clearly vests a considerable amount of discretion in the towns, and beyond the statutory requirements specifically enumerated in 24 V.S.A. § 2741 , towns which choose to offer tax stabilization contracts to owners of farmland, pursuant to the provisions of this section, are free to adopt any rules and requirements that in their judgment further the policies of their individual plans. Town of Cambridge v. Bassett, 142 Vt. 171, 453 A.2d 413, 1982 Vt. LEXIS 620 (1982).

Income guidelines.

Where property owners petitioned selectmen of town to enter into a farmer’s tax stabilization contract, and selectmen denied the petition based on the fact that the property owners failed to meet the selectmen’s income guideline, which required that property owners derive no less than two-thirds of their income from farming, board of appraisers erred in ordering the town to grant the property owners a farmer’s contract, since the income criterion set by the selectmen was well within the bounds of this section and was constitutionally sound. Town of Cambridge v. Bassett, 142 Vt. 171, 453 A.2d 413, 1982 Vt. LEXIS 620 (1982).

Limiting farmer’s tax stabilization contracts, negotiated with a municipality pursuant to the provisions of this section, to those property owners whose income was predominantly derived from farming did not create an unreasonable classification for tax purposes in contravention of the Equal Protection Clause. Town of Cambridge v. Bassett, 142 Vt. 171, 453 A.2d 413, 1982 Vt. LEXIS 620 (1982).

Town could properly choose to limit the benefits of its farmer’s tax stabilization contracts to property owners who derived no less than two-thirds of their income from farming since that income eligibility requirement clearly met the criterion of subdiv. (a)(1) of this section requiring that such contracts be entered into only with owners of farmland that “is actively and exclusively devoted to farming and . . . operated or leased as a farm enterprise”; although the income requirement had been deleted from 24 V.S.A. § 2741 , governing municipal tax stabilization plans, it was clear from the language of the remaining subsections that the amendment only broadened the potential class from which towns could choose eligible property owners, according to their own criteria. Town of Cambridge v. Bassett, 142 Vt. 171, 453 A.2d 413, 1982 Vt. LEXIS 620 (1982).

§ 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.

HISTORY: Added 1989, No. 23 .

History

Revision note

—2013. Deleted “but are not limited to” following “include” in accordance with 2013, No. 5 , § 4.

§ 3848. Inventory tax; local option.

  1. 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.
  2. 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.
  3. 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.

HISTORY: Added 1991, No. 203 (Adj. Sess.), § 2, eff. May 27, 1992.

History

Revision note

—2021. In subsec. (b), deleted “without limitation,” following “includes” in accordance with 2013, No. 5 , § 4.

§ 3849. Business personal property; local option.

  1. 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.
  2. As used in this section, “business personal property” means property defined in subsection 3618(c) of this title.
  3. 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.

HISTORY: Added 1991, No. 203 (Adj. Sess.), § 3, eff. May 27, 1992.

§ 3850. Blighted property improvement program.

  1. 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.
  2. 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.
  3. 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.
  4. 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.

HISTORY: Added 2013, No. 59 , § 14a.

Chapter 127. Quadrennial Appraisal of Real Estate

Subchapter 1. Quadrennial Appraisal

§§ 3901-3916. Repealed. 1957, No. 219, § 4, eff. July 1, 1961.

History

Former §§ 3901-3916. Former § 3901 relating to appraisal in towns was derived from V.S. 1947, § 680; 1947, No. 12 , § 1; P.L. § 631; 1933, No. 11 ; G.L. § 732; 1908, No. 24 ; P.S. § 524; 1904, No. 27 , § 1; 1898 S., No. 1, § 1; V.S. § 387; 1890, No. 11 , §§ 1, 2; R.L. § 292; 1876, No. 15 , § 1; 1872, No. 5 , § 1; G.S. 83, § 20; 1855, No. 43 , § 19; 1853, No. 36 , §§ 1, 3; 1851, No. 41 , § 1; 1841, No. 16 , § 14; 1825, No. 9 , § 11; 1820, p. 3, 4, §§ 1, 4.

Former § 3902 relating to appraisal in unorganized towns and gores was derived from V.S. 1947, § 681; 1947, No. 12 , § 2; P.L. § 632; 1933, No. 14 , § 2.

Former § 3903 relating to appraisal of railroad property was derived from V.S. 1947, § 682; 1947, No. 12 , § 3; P.L. § 633; G.L. § 733; P.S. § 527; R. 1906, § 477; V.S. § 390; 1894, No. 6 , § 2; R.L. § 295; 1880, No. 80 , § 3; 1876, No. 17 , § 1; 1874, No. 4 , § 1.

Former § 3904 relating to evaluating property of public utilities was derived from V.S. 1947, § 683; 1939, No. 15 , § 1.

Former § 3905 relating to appraisal of lands used for public or charitable purposes was derived from V.S. 1947, § 687; P.L. § 638; G.L. § 738; 1915, No. 32 , § 1; 1908, No. 26 , § 1; P.S. § 535; V.S. § 397; R.L. § 312; 1876, No. 20 , § 1.

Former § 3906 relating to listers’ oath was derived from 1957, No. 221 , § 7; V.S. 1947, § 684; P.L. § 634; G.L. § 734; P.S. § 528; 1898, No. 15 , § 1; V.S. § 391; R.L. § 296.

Former § 3907 relating to notice of and hearing on appraisal was derived from V.S. 1947, § 685; P.L. § 635; 1923, No. 20 ; G.L. § 735; 1908, No. 25 , § 1; P.S. § 529; 1906, No. 29 , § 1.

Former § 3908 relating to correction of omissions and errors was derived from V.S. 1947, § 686; P.L. § 637; G.L. § 737; 1910, No. 41 , § 1; P.S. §§ 533, 556; V.S. §§ 395, 419; 1882, No. 2 , § 15; R.L. §§ 309, 343; 1878, No. 102 , § 4; 1874, No. 5 ; G.S. 83, §§ 24, 26; 1855, No. 43 , §§ 23, 25; 1849, No. 17 ; 1847, No. 40 , § 2; 1844, No. 8 , § 4.

Former § 3909 relating to correcting defective or invalid quadrennial appraisal was derived from V.S. 1947, § 688; P.L. § 639; G.L. § 739; 1910, No. 47 , § 21.

Former § 3910 relating to duties of listers was derived from V.S. 1947, § 689; P.L. § 640; G.L. § 740; 1910, No. 47 , § 23.

Former § 3911 relating to duties of town clerk was derived from V.S. 1947, § 690; P.L. § 641; G.L. § 741; 1910, No. 47 , § 24.

Former § 3912 relating to notice of and hearing on corrected appraisal was derived from V.S. 1947, § 691; P.L. § 642; G.L. § 742; 1910, No. 47 , § 25.

Former § 3913 relating to procedure upon expiration of term or death of lister was derived from V.S. 1947, § 692; P.L. § 643; G.L. § 743; 1910, No. 47 , § 22.

Former § 3914 relating to abstract of quadrennial appraisal, filing was derived from V.S. 1947, § 693; P.L. § 644; 1919, No. 30 , § 1.

Former § 3915 relating to certification of abstract was derived from V.S. 1947, § 694; P.L. § 645; 1919, No. 30 , § 2.

Former § 3916 relating to transmission of abstract to commissioner was derived from V.S. 1947, § 695; P.L. § 646; 1919, No. 30 , § 3.

Subchapter 2. Repeal of Quadrennial Appraisals

§§ 3941-3944. Repealed. 2003 (Adj. Sess.), No. 70, § 36, eff. March 1, 2004.

History

Former §§ 3941-3944. Former § 3941, relating to the purpose of the subchapter, was derived from 1957, No. 219 , § 1.

Former § 3942, relating to references to amended or repealed “quadrennial appraisals”, was derived from 1957, No. 219 , § 2.

Former § 3943, relating to repealed provisions, was derived from 1957, No. 219 , § 4.

Former § 3944, relating to the effective date of subchapter, was derived from 1957, No. 219 , § 5.

Chapter 129. Grand Tax Lists

CROSS REFERENCES

Property to be listed at one percent, see § 3482 of this title.

Subchapter 1. Inventories

§ 4001. Inventory forms.

  1. 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.
  2. 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.
  3. 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.

HISTORY: Amended 1977, No. 105 , § 14(a); 1999, No. 49 , § 25, eff. June 2, 1999; 2005, No. 38 , § 5, eff. June 2, 2005.

History

Source.

Subsec. (a): V.S. 1947, § 696. P.L. § 647. G.L. § 744. 1912, No. 42 , § 11. 1910, No. 38 , § 12. P.S. § 536. V.S. § 398. 1882, No. 2 , § 1. R.L. § 318. 1880, No. 78 , § 2.

Subsec. (b): V.S. 1947, § 826. 1939, No. 21 , § 4.

Amendments

—2005. Subsec. (a): Substituted “of each taxpayer’s” for “his” preceding “taxable property” and inserted “including income and expense information with respect to any income-producing properties” in the second sentence.

—1999. Subsec. (b): Amended generally.

Subsec. (c): Added.

—1977. Substituted “director” for “commissioner” or “commissioner of taxes”.

§ 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

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Listers may administer all oaths prescribed in this chapter other than such as are required to be administered to listers.

History

Source.

1949, No. 19 . V.S. 1947, No. 13 , § 2. P.L. § 648. G.L. § 748. 1917, No. 254 , § 716, 1910, No. 28 , § 3. P.S. § 540. V.S. § 402. 1882, No. 2 , § 3. R.L. § 320. 1880, No. 78 , § 4.

§ 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.

HISTORY: Amended 1993, No. 49 , § 3, eff. May 28, 1993.

History

Source.

V.S. 1947, § 699. P.L. § 650. G.L. § 750. 1910, No. 38 , § 18. P.S. § 542. V.S. § 404. 1882, No. 2 , § 5. R.L. § 321. 1880, No. 78 , § 5.

Amendments

—1993. Substituted “section 3411(6)” for “section 3406” following “provided in” in the first sentence.

§ 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.

HISTORY: Amended 2013, No. 73 , § 31, eff. July 1, 2014.

History

Amendments

—2013. Deleted “and persons taxable only upon their polls” before “shall not be required” in last sentence.

§ 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.

History

Source.

V.S. 1947, § 701. P.L. § 652. G.L. § 752. P.S. § 544. V.S. § 406. 1882, No. 2 , § 7. R.L. §§ 323, 324. 1880, No. 78 , §§ 7, 8.

§ 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.

HISTORY: Amended 1965, No. 194 , § 10, eff. July 1, 1965, operative Feb. 1, 1967; 1999, No. 49 , § 28, eff. June 2, 1999.

History

Source.

V.S. 1947, § 749 II. 1947, No. 13 , § 2. P.L. § 704. G.L. § 810. 1917, No. 254 , § 778. 1915, No. 34 , § 7. 1915, No. 40 , § 1. P.S. § 578. V.S. § 439. 1882, No. 2 , § 30. R.L. § 330. 1880, No. 78 , § 14.

Revision note—

Subsec. (b), which provided that justices of the peace had concurrent jurisdiction with county [superior] and district courts, was omitted as obsolete, since justices of the peace no longer have judicial jurisdiction. See 1973, No. 249 (Adj. Sess.). Subsec. “(a)” designation was then deleted to conform to V.S.A. style.

Amendments

—1999. Section amended generally.

—1965. Subsec. (b): Substituted “district” for “municipal” court.

1999 amendment. 1999, No. 49 , § 38(k) provides that the amendment to this section by § 28 of that act shall apply to valuation appeals of grand lists for 2000 and after.

§ 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.

HISTORY: Added 1999, No. 49 , § 26, eff. June 2, 1999.

History

Source.

V.S. 1947, § 750. 1941, No. 15 , § 1. P.L. § 705. 1933, No. 157 , § 643. 1927, No. 14 , § 2. G.L. § 811. P.S. § 579. 1902, No. 16 , § 1. V.S. § 440. 1884, No. 4 . 1882, No. 2 , § 26.

Amendments

—1999. Added “shall be maintained in a manner reasonably calculated to protect the confidentiality of the information contained in the inventories” following “June 1”.

ANNOTATIONS

Penalties.

Failure of listers to file tax inventories with town clerk does not subject them to fine provided by former 24 V.S.A. § 723 , as such section applies only to failure to take up or carry on general duties of the office and not to single instances of failure to perform the whole duty. State v. Allen, 71 Vt. 323, 45 A. 218, 1899 Vt. LEXIS 183 (1899).

Notes to Opinions

Microfilms.

Provisions of section are not complied with by microfilming and destroying original returns after such photographic process is completed. 1946-48 Vt. Op. Att'y Gen. 336.

§ 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.

History

Source.

V.S. 1947, § 751. P.L. § 706. G.L. § 812. P.S. § 580. V.S. § 441. 1882, No. 2 , § 27.

§ 4009. Examination of inventories.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. Except as provided in this chapter, the town clerk shall not allow a person to examine such inventories.
  6. 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.

HISTORY: Amended 1977, No. 105 , § 14(a); 1999, No. 49 , § 27, eff. June 2, 1999; 2017, No. 93 (Adj. Sess.), § 27.

History

Source.

V.S. 1947, § 752. P.L. § 707. 1933, No. 157 , § 645. G.L. § 813. 1912, No. 45 , §§ 1, 2. 1910, No. 48 , § 1. P.S. § 581. 1906, No. 33 , § 1. V.S. § 442. 1882, No. 2 , § 28.

Amendments

—2017 (Adj. Sess.). Added subsection designations.

Subsec. (b): Deleted “town grand jurors,” after “collectors of taxes,” and inserted “or” after “and the taxpayer,”.

—1999. Section amended generally.

—1977. Substituted “director” for “commissioner of taxes”.

§ 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.

History

Source.

V.S. 1947, § 772. P.L. § 726. G.L. § 861. 1912, No. 42 , § 10. 1910, No. 38 , § 19. P.S. § 587. V.S. § 448. 1882, No. 2 , § 31.

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.

History

Source.

1957, No. 221 , § 8. 1949, No. 20 . V.S. 1947, § 702. P.L. § 653. G.L. § 753. P.S. § 546. V.S. § 408. 1882, No. 2 , § 9. R.L. § 325. 1880, No. 78 , § 9.

Biennial determination of aggregate fair market value. 1993, No. 210 (Adj. Sess.), § 174, provided: “Notwithstanding any other provision of law, beginning January 1, 1992, the commissioner of taxes shall determine the aggregate fair market value and the coefficient of dispersion of all taxable property biennially, instead of annually.”

Biennial determination of aggregate fair market value. 1995, No. 178 (Adj. Sess.), § 177 provides: “Notwithstanding any other provision of law, beginning January 1, 1992, the commissioner of taxes shall determine the aggregate fair market value and the coefficient of dispersion of all taxable property biennially, instead of annually.”

CROSS REFERENCES

Practice of land surveying defined, see 26 V.S.A. § 2502(4) .

ANNOTATIONS

Nature of examination.

The City of Rutland, Vermont’s assessment and collection of taxes is a core governmental function. Sobel v. City of Rutland, 2012 VT 84, 192 Vt. 538, 60 A.3d 625, 2012 Vt. LEXIS 81 (2012).

No Fourth Amendment search occurred when town listers encountered marijuana in the course of their examination of defendants’ property for appraisal purposes; therefore, whether or not the listers were on defendants’ property lawfully, evidence of defendants’ possession of marijuana plants and drug paraphernalia seized under a warrant based on information supplied by the listers was admissible in prosecution for felony marijuana cultivation and misdemeanor possession of marijuana. State v. Schofner, 174 Vt. 430, 800 A.2d 1072, 2002 Vt. LEXIS 75, app. dismissed sub nom. State v. Tripp, 174 Vt. 646, 812 A.2d 859, 2002 Vt. LEXIS 353 (2002) (mem.).

Failure of tax assessors to make a personal examination of property prior to rendering tax assessments thereon was not alone fatal to town claims for property taxes. In re Corp. of Windham College, 34 B.R. 408, 1983 Bankr. LEXIS 5779 (Bankr. D. Vt. 1983).

Purpose.

The purpose of this section is to protect the taxpayer individually and collectively from property taxation based upon arbitrarily determined appraisal values. In re Corp. of Windham College, 34 B.R. 408, 1983 Bankr. LEXIS 5779 (Bankr. D. Vt. 1983).

Cited.

Cited in Heindel v. Town of Grafton, 140 Vt. 147, 435 A.2d 695, 1981 Vt. LEXIS 565 (1981); Kingsland Bay School, Inc. v. Town of Middlebury, 153 Vt. 201, 569 A.2d 496, 1989 Vt. LEXIS 224 (1989); Elliott v. Town of Barnard, 153 Vt. 306, 571 A.2d 653, 1989 Vt. LEXIS 258 (1989).

§ 4041a. Reappraisal.

  1. A municipality shall be paid $8.50 per grand list parcel per year from the Education Fund to be used only for reappraisal and costs related to reappraisal of its grand list properties and for maintenance of the grand list.
  2. If the Director of Property Valuation and Review determines that a municipality’s education grand list is at a common level of appraisal below 85 percent or above 115 percent, or has a coefficient of dispersion greater than 20, 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, 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.
  3. 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.
  4. 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 assessing officials. 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 assessing officials. In addition to providing the annual education programs as 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 assessing officials to attend national programs providing education opportunities on advanced assessment topics. All applications for scholarships shall be submitted to and approved by the Director.
  5. The Director shall adopt rules necessary for administration of this section.

HISTORY: 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.

History

Amendments

—2021. Subsecs. (a), (d): Deleted “the equalization and reappraisal account within” preceding “the Education Fund”.

—2019. Subsec. (b): Substituted “85” for “80,” and inserted “above 115 percent, or” in the first sentence. su

—2015 (Adj. Sess.). Subsec. (a): Deleted the former final sentence.

Subsec. (d): Added subsec. (d) and redesignated former subsec. (d) as subsec. (e).

—2005 (Adj. Sess.). Subsec. (a): Amended generally.

—2005. Subsec. (a): Substituted “$8.80 per grand list” for “$6.00 per grand list”, inserted “and $8.50 per parcel of this amount shall be paid to the town” and added “and $0.30 per parcel of this amount shall be paid to the lister training subaccount, to the credit of the town in which the parcel is located” and made a minor change in punctuation.

ANNOTATIONS

Cited.

Cited in Williams v. Town of Lyndon, 2005 VT 27, 178 Vt. 507, 872 A.2d 341, 2005 Vt. LEXIS 36 (2005); M.T. Associates v. Town of Randolph, 2005 VT 112, 179 Vt. 81, 889 A.2d 740, 2005 Vt. LEXIS 255 (2005) (mem.).

§§ 4042, 4043. Repealed. 1957, No. 219, § 4, eff. July 1, 1961.

History

Former §§ 4042, 4043. Repeal of §§ 4042, 4043 of this title took effect prior to July 1, 1961, in towns or cities so voting; see §§ 3941-3944 of this title.

Former § 4042 relating to changes in appraisal, generally was derived from 1953, No. 49 ; V.S. 1947, § 705; 1939, No. 16 , § 1; 1935, No. 25 , § 1; P.L. § 661; G.L. § 775; P.S. § 555; 1906, No. 30 , § 1; 1896, No. 13 , § 1; V.S. § 418; 1882, No. 2 , § 15; R.L. § 342; 1872, No. 6 ; G.S. 83, § 19; 1855, No. 43 , § 18; 1853, No. 40 ; 1841, No. 16 , § 13; 1825, No. 9 , § 19; 1820, p. 5, § 5.

Former § 4043 relating to mines, quarries, and manufacturing plants was derived from V.S. 1947, §§ 707, 708; P.L. §§ 662, 663; 1933, No. 12 , §§ 1, 2.

§ 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.

History

Source.

1957, No. 260 , § 1. 1957, No. 221 , § 9. V.S. 1947, § 704. P.L. § 655. 1933, No. 157 , § 596. G.L. § 766. 1917, No. 254 , § 734. P.S. § 548. V.S. § 410. 1882, No. 2 , § 11. R.L. § 317. 1880, No. 78 , § 1.

ANNOTATIONS

Generally.

When listers have made the appraisals at fair market value, and have done so according to their best and sound judgment, they have performed their statutory duty. Royalton Taxpayers Protective Association v. Wassmansdorf, 128 Vt. 153, 260 A.2d 203, 1969 Vt. LEXIS 218 (1969).

Delegation of duties.

Listers are not empowered to delegate their duties to appraise at market value and in their best and sound discretion to others. Royalton Taxpayers Protective Association v. Wassmansdorf, 128 Vt. 153, 260 A.2d 203, 1969 Vt. LEXIS 218 (1969).

Discretion of listers.

Listers’ duty to appraise real estate and personal property at its fair market value is an exercise of the sound judgment of the appraisers. Town of Pawlet v. Witherspoon, 128 Vt. 120, 259 A.2d 15, 1969 Vt. LEXIS 210 (1969).

Listers’ duty to appraise is judicial in character, and they act upon their best discretion and judgment. Royalton Taxpayers Protective Association v. Wassmansdorf, 128 Vt. 153, 260 A.2d 203, 1969 Vt. LEXIS 218 (1969).

Powers of town meeting.

Town meeting does not have power to instruct listers as to their duties or to instruct them to disregard property assessments made or approved by them. Royalton Taxpayers Protective Association v. Wassmansdorf, 128 Vt. 153, 260 A.2d 203, 1969 Vt. LEXIS 218 (1969).

§ 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.

History

Source.

1957, No. 260 , § 2.

§ 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.

History

Source.

1957, No. 260 , § 3.

§ 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.

History

Source.

1957, No. 260 , § 5.

Revision note—

Words “under section 4403 of this title” were substituted for “therefore” in the interests of clarity.

§ 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.

History

Source.

V.S. 1947, § 718. P.L. § 673. G.L. § 783. P.S. § 564. V.S. § 426. 1882, No. 2 , § 19.

§ 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.

HISTORY: Amended 1957, No. 219 , § 3, eff. July 1, 1961; 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 706. 1939, No. 16 , § 2. 1935, No. 25 , § 2.

Amendments

—1977. Substituted “director” for “commissioner of taxes”.

—1957. Deleted reference to section 4042 of this title. This amendment takes effect on July 1, 1961, or earlier if a town so votes under § 3944 of this title.

§ 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.

History

Source.

1957, No. 221 , § 15. V.S. 1947, § 773. P.L. § 727. 1933, No. 14 , § 1. 1925, No. 24 , § 1. G.L. §§ 858, 862. 1912, No. 42 , §§ 3, 6. 1910, No. 38 , § 9. P.S. § 523. V.S. § 386. R.L. § 291. 1862, No. 18 , § 2.

§ 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.

History

Source.

V.S. 1947, § 774. P.L. § 728. 1933, No. 14 , § 1. 1919, No. 29 , § 4. G.L. § 863. 1915, No. 32 , § 2. 1912, No. 42 , § 4. 1908, No. 26 , § 1. P.S. § 535. V.S. § 397. R.L. § 312. 1876, No. 20 , § 1.

Revision note—

References to §§ 3902 and 3905 were deleted as those sections have been repealed.

§ 4052. Contract appraisals; certification.

  1. No person, firm, or corporation shall be employed by a municipality 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.
  2. The Director shall establish by rule reasonable qualifications for approval, 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.
  3. This section shall not apply to elected or appointed officials of any town.

HISTORY: 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.

History

Amendments

—1995 (Adj. Sess.) Subsec. (b): Inserted “in the case of an appraiser hired to do a townwide reappraisal” preceding “at least one”.

—1989 (Adj. Sess.). Subsec. (a): Substituted “approved” for “certified” following “unless”.

Subsec. (b): Substituted “approval” for “certification” preceding “which shall”.

—1987. Subsec. (b): Deleted “in the state of Vermont” following “reappraisals” at the end of the subsection.

Expiration date of 1989 (Adj. Sess.) amendment. 1993, No. 217 . (Adj. Sess.), § 17, provided for the repeal of 1989, No. 264 (Adj. Sess.), § 7(b), which is noted under this section in the 1993 cumulative supplement.

CROSS REFERENCES

Procedure for adoption of administrative rules, see 3 V.S.A. chapter 25.

Subchapter 3. Individual Lists

Article 1. Drawing up 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.

History

Source.

V.S. 1947, § 703. P.L. § 654. G.L. § 765. P.S. § 547. V.S. § 409. 1882, No. 2 , § 10. R.L. §§ 325, 339. 1880, No. 78 , § 9. 1864, No. 64 , § 1. G.S. 83, §§ 19, 29. 1855, No. 43 , §§ 18, 28. 1842, No. 1 , § 12. 1841, No. 16 , § 13. 1825, No. 9 , § 7. R. 1797, p. 571, § 9. 1791, Jan., p. 13, § 1. 1787, p. 8.

ANNOTATIONS

Nonreturn of inventory.

Authority of listers, under § 4084 of this title, exists only where failure of taxpayer to return an inventory or answer an interrogatory is willful, and where such failure is not willful, listers should complete such list in the ordinary way as provided in this section and former § 4042 of this title. Frazier v. Slack, 85 Vt. 160, 81 A. 161, 1911 Vt. LEXIS 222 (1911).

Where failure of taxpayer to return inventory or answer an interrogatory is not willful, listers should complete such list in the ordinary way as provided by former § 4042 of this title and this section and not as provided by § 4084 of this title. Frazier v. Slack, 85 Vt. 160, 81 A. 161, 1911 Vt. LEXIS 222 (1911).

§ 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.

History

Source.

1957, No. 221 , § 10. V.S. 1947, § 712. 1935, No. 26 . P.L. § 667. 1933, No. 16 , § 1. G.L. § 779. P.S. § 560. V.S. § 423. 1882, No. 2 , § 16.

Revision note—

Deleted “, with the amount of his taxable poll, if any,” after “obtained” and last two sentences pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

ANNOTATIONS

Boundary disputes.

As property owners, plaintiffs seeking declaratory judgment to have boundary line determined for tax purposes had the right to be taxed only once on their land, part of which was being taxed by each of two towns. Poulin v. Town of Danville, 128 Vt. 161, 260 A.2d 208, 1969 Vt. LEXIS 219 (1969).

Liability of listers.

Setting in list of personal property, such as money, debts due, etc., is matter resting altogether in discretion of listers, and they are only liable for errors purposely made, out of malice towards party injured. Stearns v. Miller, 25 Vt. 20, 1852 Vt. LEXIS 107 (1852).

Setting of number of acres of land appraised in list of owners is nothing more, ordinarily, than matter of fact; but listers, in doing this, are required to act in good faith and with common care and skill and prudence and, if through either fraud, malice, or negligence damage ensues, they are liable. Stearns v. Miller, 25 Vt. 20, 1852 Vt. LEXIS 107 (1852).

Ownership of property.

In suit to recover taxes paid under protest, taxpayer cannot show that taxpayer did not in fact own property listed to taxpayer, where there was evidence tending to show such ownership, and question was considered by listers, and again on appeal by board of civil authority. Weatherhead v. Town of Guilford, 62 Vt. 327, 19 A. 717, 1890 Vt. LEXIS 124 (1890).

§ 4083. Repealed. 1957, No. 219, § 4, eff. July 1, 1961.

History

Former § 4083. Repeal of this section took effect prior to July 1, 1961, in towns or cities so voting.

Former § 4083 relating to deductions for exempt realty was derived from V.S. 1947, § 709; P.L. § 664; G.L. § 776; 1915, No. 1 , § 55; P.S. § 557; V.S. § 420; R.L. § 349.

§ 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.

History

Source.

1957, No. 221 , § 11. V.S. 1947, § 713. 1947, No. 13 , § 2. P.L. § 668. G.L. § 780. 1910, No. 45 , § 1. P.S. § 561. 1906, No. 31 , § 1. V.S. § 424. 1882, No. 2 , § 17. R.L. § 326. R.S. p. 541-543. 1880, No. 78 , § 10. 1825, No. 9 , §§ 5, 7, 8, 9, 12, 14, 17. 1797, Feb., p. 13, § 11. 1797, Feb., p. 14, § 12. 1797, Feb., p. 16, § 14. 1797, Feb., p. 17, § 15. 1797, Feb., p. 18, § 17. R. 1787, p. 9-12.

Revision note

—2013. Deleted from last sentence “, together with the amount of the taxable poll, if any,” pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

ANNOTATIONS

Basis for increases.

Fact that taxpayer is generally reputed of means cannot be basis of judicial belief sufficient to authorize listers, under this section, to increase amount shown by taxpayer’s inventory. Braley v. City of Barre, 88 Vt. 251, 92 A. 236, 1914 Vt. LEXIS 217 (1914).

Construction with other laws.

Authority of listers to make a taxpayer’s list, under this section, exists only where failure of taxpayer to return an inventory or answer an interrogatory is willful, but where such failure is not willful, the listers should complete such list in the ordinary way as provided in §§ 4042 (now repealed) and 4081 of this title. Frazier v. Slack, 85 Vt. 160, 81 A. 161, 1911 Vt. LEXIS 222 (1911).

§ 3651 of this title, specifying to whom and where taxable real estate shall be set in the list; § 3691 of this title, containing like provisions as to personal estate; and § 4152 of this title, declaring the required particulars of the completed grand list, are as applicable where taxpayer’s list is made up by the listers pursuant to this section owing to willful omission to return an inventory as where list is based on an inventory properly returned; and complete grand list of a taxpayer who has willfully omitted to return an inventory need not recite in detail action of listers in making it. Smith v. Stannard, 81 Vt. 319, 70 A. 568, 1908 Vt. LEXIS 151 (1908).

Definitions.

In this section word “willfully” means intentionally and nothing more. Buchanan v. Cook, 70 Vt. 168, 40 A. 102, 1897 Vt. LEXIS 24 (1897).

Further appraisal.

Taxpayer cannot attack action of listers under this section, in assessing him $5,000 in addition to amount shown by his inventory, because listers believed this too small, where listers acted on facts that three years before plaintiff inherited $28,080; that there were facts and circumstances tending to show his continued use and control of a comparatively large sum of money; that he refused to tell the listers what had become of the $28,080; and where action of listers was affirmed on the same facts by board of civil authority and by Commissioner of Taxes. Braley v. City of Barre, 88 Vt. 251, 92 A. 236, 1914 Vt. LEXIS 217 (1914).

Action of listers is judicial when they further appraise taxpayer’s property; in action to recover goods taken by a collector in satisfaction of a tax, evidence is not admissible to attack the assessment of the listers by showing that they had no facts on which to base it. Fulham v. Howe, 60 Vt. 351, 14 A. 652, 1888 Vt. LEXIS 154 (1888).

Incomplete inventory.

Listers act judicially and they have authority under this section to reject taxpayer’s inventory and make up new one for him, if they believe on reasonable grounds, and not as matter of caprice, that taxpayer’s inventory is not a full, true, and correct list of his taxable property. Braley v. City of Barre, 88 Vt. 251, 92 A. 236, 1914 Vt. LEXIS 217 (1914).

Liability of listers.

Listers of town are liable for neglect of duty where person is improperly assessed and compelled to pay taxes in consequence of such assessment. Howard v. Shumway, 13 Vt. 358, 1841 Vt. LEXIS 72 (1841).

Method of appraising.

Where listers, dissatisfied with inventory submitted by taxpayer, reject it and make up a new one for him under this section, they must appraise his real estate, and not merely take its valuation by way of bare transfer from the quadrennial appraisal. Ryan v. Rooney, 88 Vt. 88, 90 A. 891, 1914 Vt. LEXIS 193 (1914).

Where taxpayer, to knowledge of listers, refused to make oath to his inventory, listers had no authority to base his list thereon, but should have ascertained as best they could the amount of his taxable property and appraised it at its true value. Bixby v. Roscoe, 85 Vt. 105, 81 A. 255, 1911 Vt. LEXIS 217 (1911).

Where taxpayer omitted from his inventory certain notes, stating he could not tell how much was due on them, and listers valued them as best they could; any error by listers in determining the amount did not invalidate list when they acted in good faith and with common care and skill. Bullock v. Town of Guilford, 59 Vt. 516, 9 A. 360, 1887 Vt. LEXIS 120 (1887).

Purpose.

The purpose of this section is to provide a means of disclosing the amount of taxable property held by a taxpayer, thereby enabling listers to make an appraisal, not to solicit the landowners’ views as to the fair market value of the property. Villeneuve v. Town of Underhill, 130 Vt. 446, 296 A.2d 192, 1972 Vt. LEXIS 298 (1972).

§ 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.

HISTORY: Amended 1973, No. 104 , § 1, 1983, No. 85 , § 1.

History

Source.

V.S. 1947, § 717. P.L. § 672. 1933, No. 157 , § 614. 1921, No. 36 . G.L. § 782. 1917, No. 43 , § 1. 1915, No. 36 , § 1. P.S. § 563. V.S. § 425. 1882, No. 2 , § 18. R.L. § 346. 1886, No. 14 . 1864, No. 64 , § 4. G.S. 83, § 27. 1855, No. 43 , § 26. 1851, No. 41 , § 2. 1844, No. 8 , § 3. 1841, No. 16 , §§ 17, 23. 1829, No. 11 , § 1. 1825, No. 9 , §§ 8, 13. R. 1797, p. 570, § 8. 1791, Jan., p. 16, § 10. 1787, p. 9.

Amendments

—1983. Substituted “fourteen” for “six” preceding “days” in the first sentence.

—1973. Substituted “certified” for “registered” mail.

ANNOTATIONS

Effect of notice.

Notice required by this section will not cure defects in abstract of personal lists lodged in town clerk’s office, as the one is a mere notice, the other an assessment or judgment. Bartlett v. Wilson, 59 Vt. 23, 8 A. 321, 1886 Vt. LEXIS 21 (1886).

Necessity of notice.

If taxpayer’s list is made up by listers by reason of taxpayer’s failure to return an inventory, provisions of this section apply and are mandatory. Thomas v. Leland, 70 Vt. 223, 39 A. 1094, 1897 Vt. LEXIS 34 (1897).

Fact that same assessment was made a previous year will not obviate necessity of giving notice. Dean v. Aiken, 48 Vt. 541, 1876 Vt. LEXIS 41 (1876).

Pleading failure to notify.

Allegations that listers failed to give notices required by section, and failed to complete and file abstracts within time and in manner required by statute, were insufficient to permit defense that it did not affirmatively appear that notices were posted. Brattleboro v. Carpenter, 104 Vt. 158, 158 A. 73, 1932 Vt. LEXIS 132 (1932).

Sufficiency of notice.

Where listers rejected inventory and made wholly new one under § 4084 of this title, written notice that “we certify that the leases held by you have been treated as perpetual under § 3609 of this title” was insufficient compliance with this section, since it did not inform taxpayer that taxpayer’s list had not been accepted and a new one made up, but rather that it had been tampered with. Ryan v. Rooney, 88 Vt. 88, 90 A. 891, 1914 Vt. LEXIS 193 (1914).

Written notice from listers referring to section of statute under which they have proceeded and notifying taxpayer that they have “assessed” taxpayer a certain sum, is sufficient. Meserve v. Folsom, 62 Vt. 504, 20 A. 926, 1889 Vt. LEXIS 129 (1889).

The inventory is not sufficient notice. Brush v. Buker, 56 Vt. 143, 1883 Vt. LEXIS 92 (1883).

Time of notice.

Notice given in mode prescribed by this section, but a day or two late, was of no effect. Thomas v. Leland, 70 Vt. 223, 39 A. 1094, 1897 Vt. LEXIS 34 (1897).

It is not the duty of the listers to notify persons whom they assess of sum of which they are assessed, and of time and place when and where they will hear those who feel themselves aggrieved by such assessment; hence, want of such notice will not vitiate list. Clement v. Hale, 47 Vt. 680, 1874 Vt. LEXIS 123 (1874).

§ 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.

History

Source.

V.S. 1947, § 714. P.L. § 669. 1919, No. 32 . G.L. § 781. P.S. § 562. 1902, No. 15 , §§ 1, 2.

§ 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.

HISTORY: Amended 1983, No. 85 , § 2.

History

Source.

V.S. 1947, § 715. P.L. § 670. 1919, No. 32 . G.L. § 781. P.S. § 562. 1902, No. 15 , §§ 1, 2.

Amendments

—1983. Substituted “fourteen” for “six” preceding “days”.

§ 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.

History

Source.

V.S. 1947, § 716. P.L. § 671. 1919, No. 32 . G.L. § 781. P.S. § 562. 1902, No. 15 , §§ 1, 2.

Article 2. Abstracts of Individual Lists

§ 4111. Abstracts of individual lists.

  1. 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.”
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.

HISTORY: 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.

History

Source.

1957, No. 221 , § 12. 1949, No. 21 , § 1. V.S. 1947, § 719. 1947, No. 13 , § 2. 1935, No. 27 , § 1. P.L. § 674. G.L. § 784. 1910, No. 46 , § 3. P.S. § 565. V.S. § 427. 1890, No. 13 , § 1. 1882, No. 2 , § 20. R.L. § 331. 1880, No. 78 , § 15. R.S. p. 542, § 12. 1825, No. 9 , § 12.

Revision note—

From the last sentence of subsec. (a) deleted “and the amount at which each poll is listed”, from subsec. (b) deleted “the valuation of all polls”, and from subsec. (h) deleted from last sentence “a taxable poll or”, pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Amendments

—2007 (Adj. Sess.). Subsec. (e): Added the second sentence, and added a comma following “time” near the beginning of the fifth sentence, effective April 1, 2009.

Subsec. (g): Added the second sentence, effective April 1, 2009.

—2003 (Adj. Sess.). Subsec. (e): Inserted “affected” preceding “persons”, substituted “subdivision 5401(7)” for “section 5401(7)”, and inserted “or the housesite as defined under subdivision 6061(11) of this title” in the first sentence, and substituted “14 days” for “fourteen days” in the second sentence.

—1999. Subsec. (e): Deleted “declared” preceding “homestead” in the first sentence.

—1997 (Adj. Sess.). Subsec. (e): Added “or any change in the allocation of value to the declared homestead as defined under section 5401(7) of this title”.

—1983. Subsec. (c): Substituted “20” for “11” following “May”.

Subsec. (e): Inserted “and place” following “time” in the first sentence and added the second sentence.

—1971. Subsec. (e): Rephrased and added provisions relating to presumption of mailing notices.

—1959. Subsec. (e): Added provision relating to personal notice of change in appraised value.

Effective date of amendments—

2007 (Adj. Sess.). 2007, No. 205 (Adj. Sess.), § 13 provides in part that § 8 of that act, which amended this section, shall apply to grand lists of April 1, 2009 and after.

ANNOTATIONS

Alteration of list.

Alteration of list by listers, after time provided for its completion, unauthorized by law, does not render whole grand list void. Willard v. Pike, 59 Vt. 202, 9 A. 907, 1886 Vt. LEXIS 37 (1886).

Where there were erasures in lists, court assumed listers had acted in good faith, as it did not appear that they were in fault in not making list more perfect. Brock v. Bruce, 58 Vt. 261, 2 A. 598, 1885 Vt. LEXIS 22 (1885).

Application of section.

Requirements regarding abstract of individual list of taxpayers to be filed by listers with town clerk are the same whether an individual list is based on the taxpayer’s inventory, or is made up by listers under § 4084 of this title because of taxpayer’s willful omission to return inventory. Smith v. Stannard, 81 Vt. 319, 70 A. 568, 1908 Vt. LEXIS 151 (1908).

Certificate of listers.

Certificate stating, “The foregoing is a list of polls and ratable estate for the town of Orange, for the year 1919, as made and assessed by us this 24th day of April, 1919,” and signed by the listers, is a sufficient compliance with subsec. (b), the form of certificate to be contained in the abstract of the personal list not being prescribed by the statute. Town of Orange v. City of Barre, 95 Vt. 267, 115 A. 238, 1921 Vt. LEXIS 210 (1921).

List should be so verified and authenticated by listers as to carry on its face fair evidence of what it is, thus while sheets of paper, not purporting to be such abstract, but signed on last page by two of the listers, as listers, did not meet requirements of this section, sheets of paper like the above, but with this certificate on the back, “We certify this to be the personal list of all the tax payers of Arlington for 1882,” which was signed by the listers, did. Smith v. Hard, 61 Vt. 469, 17 A. 481, 1889 Vt. LEXIS 68 (1889).

When list required by section was neither signed nor certified by listers, and no minute was made by the town clerk of time when it was thus lodged, it was invalid; and taxes paid under protest were recoverable. Bundy v. Town of Wolcott, 59 Vt. 665, 10 A. 756, 1887 Vt. LEXIS 169 (1887).

Contents.

Section does not require that abstract of list of recusant taxpayer, made up by listers under § 4084 of this title, owing to willful omission to return an inventory, shall recite in detail actions of listers in so making up list; but abstract showing appraisal of recusant taxpayer’s different pieces of real property, also of her personal estate, and that such appraisals were taken in aggregate as her total real and personal estate, is sufficient. Smith v. Stannard, 81 Vt. 319, 70 A. 568, 1908 Vt. LEXIS 151 (1908).

Curing defects in list.

Lists required by section must include real estate of taxpayers, and failure of listers to file the same as provided in this section invalidates the whole grand list, which cannot be validated by curative statute, since failure deprives taxpayer of constitutional right to be heard. Godfrey v. Bennington Water Co., 75 Vt. 350, 55 A. 654, 1903 Vt. LEXIS 139 (1903).

Where defect in grand list consisted of omission by listers of something that Legislature might have dispensed with by prior statute, such list may be legalized by subsequent statute, but when list is fatally defective in matter of substance affecting taxpayer’s rights it cannot be cured by retrospective law; thus, where defendant’s name and list were omitted in abstract of personal lists to be lodged in town clerk’s office and abstract was not signed, certified nor authenticated by listers, but merely endorsed “Personal Lists, 1881” grand list was illegal, and was not cured by later act of Legislature declaring it valid. Bartlett v. Wilson, 59 Vt. 23, 8 A. 321, 1886 Vt. LEXIS 21 (1886).

Filing.

The duties imposed upon the listers to include within the grand list the substantial information outlined within § 4152 of this title, governing contents of the grand list, and under subsec. (d) of this section to lodge the book or books, required by law to be furnished for the abstract of individual lists and the grand list, with the town clerk, are ministerial in nature for purposes of determining whether a remedy in mandamus will lie. Bargman v. Brewer, 142 Vt. 367, 454 A.2d 1253, 1983 Vt. LEXIS 601 (1983).

Answer alleging that abstract was not lawfully made up in that same was not “filed” in time required by law, was sufficient to raise question whether abstract was “lodged” in town clerk’s office within time required by this section and § 4341 of this title. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

Provision requiring listers to lodge in town clerk’s office abstract of personal lists of all taxpayers for their inspection, is mandatory. Smith v. Hard, 59 Vt. 13, 8 A. 317, 1886 Vt. LEXIS 20 (1886).

Notice of hearing.

Failure of notice prepared by listers to designate place where listers would hear taxpayers respecting their grievances, if any, regarding their lists in accordance with requirements of subsec. (c) did not invalidate lists of taxpayers who appeared before listers on day designated in such notice at their place of meeting, were fully heard on their claims that their grand list was too high, and later appealed from decision of listers thereon to board of civil authority, since under such circumstances defect in notice was waived. Federal Land Bank v. Flanders, 105 Vt. 204, 164 A. 539, 1933 Vt. LEXIS 204 (1933).

While listers, under subsec. (c) of this section and § 4341 of this title, are to determine the place for hearing of aggrieved taxpayers, they have no authority respecting its time, that being definitely fixed by Legislature, its intention being made more certain by § 4221 of this title, providing that listers shall meet at place designated by them, at time fixed by statute, and not at time and place to be designated by them. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

Sufficiency generally.

Where listers left in town clerk’s office abstract of list within time required by statute, which contained assessment complained of in explicit terms, was properly certified, and contained general notice of hearing, as to any over-assessment of personal property, it was held to be sufficient. Stearns v. Miller, 25 Vt. 20, 1852 Vt. LEXIS 107 (1852).

Cited.

Cited in Spears v. Town of Enosburg, 153 Vt. 259, 571 A.2d 604, 1989 Vt. LEXIS 252 (1989).

Notes to Opinions

Subdivisions.

Notice must be given by listers to each owner when land has been subdivided even though the appraisal for each part only equals the appraisal of the whole track before the subdivision because the old owner’s appraisal has been renewed and the new owner has received an appraisal he did not have before. 1962-64 Vt. Op. Att'y Gen. 177.

§ 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.

History

Source.

V.S. 1947, § 721. P.L. § 676. 1933, No. 157 , § 618. 1919, No. 34 , § 1. G.L. § 786. 1915, No. 47 . 1910, No. 47 , § 1.

§ 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.

History

Source.

V.S. 1947, § 722. P.L. § 677. G.L. § 787. 1910, No. 47 , § 2.

§ 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.

History

Source.

V.S. 1947, § 723. P.L. § 678. G.L. § 788. 1910, No. 47 , § 3.

§ 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.

History

Source.

V.S. 1947, § 724. P.L. § 679. G.L. § 789. 1910, No. 47 , § 4.

§ 4116. Notices posted and published; mail to nonresidents.

  1. 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.
  2. Nonresident taxpayers shall receive notice by first-class mail on which postage has been prepaid and addressed to their last known address.

HISTORY: Amended 1983, No. 85 , § 4.

History

Source.

V.S. 1947, § 725. P.L. § 680. G.L. § 790. 1910, No. 47 , § 5.

Amendments

—1983. Added “; mail to nonresidents” at the end of the section heading, designated the existing provisions as subsec. (a) and added subsec. (b).

Subchapter 4. Grand List of Town

Article 1. Drawing up Grand List

§ 4151. Grand list of town.

  1. 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.
  2. 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.”)

  3. 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.
  4. 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.

HISTORY: Amended 1983, No. 85 , § 5; 2003, No. 70 (Adj. Sess.), § 37, eff. March 1, 2004.

History

Source.

1957, No. 238 . 1955, No. 202 , § 2. 1949, No. 21 , § 2. V.S. 1947, § 729. 1935, No. 27 , § 2. P.L. § 684. G.L. § 794. 1917, No. 254 , § 762. 1910, No. 46 , § 6. 1910, No. 47 , § 20. P.S. § 570. V.S. § 432. 1882, No. 2 . § 25. R.L. § 350. G.S. 83, § 36. 1855, No. 43 , § 33. 1851, No. 41 , § 2. 1841, No. 16 , § 19. 1825, No. 9 , § 16. R. 1797, p. 575, § 16. 1791, Jan., p. 16, § 9. 1787, p. 9.

Revision note—

Deleted from subsec. (b) “taxable polls and” pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Amendments

—2003 (Adj. Sess.). Subsec. (b): Substituted “all real estate and taxable personal estate, within” for “all taxable real and personal estate, taxable within” in the first sentence of the oath.

—1983. Subsec. (a): Substituted “June 25” for “May 25” following “before”.

Subsec. (b): Substituted “June 25” for “May 25” following “before”.

Subsec. (d): Substituted “eighteen” for “ten” preceding “days” in the third sentence.

ANNOTATIONS

Alteration of list.

Alteration of list by listers, after time provided for its completion, unauthorized by law, does not render whole grand list void. Willard v. Pike, 59 Vt. 202, 9 A. 907, 1886 Vt. LEXIS 37 (1886).

Alterations in list after being deposited in town clerk’s office by persons other than listers did not make the list void, but it was legal and valid as originally made and deposited. Willard v. Pike, 59 Vt. 202, 9 A. 907, 1886 Vt. LEXIS 37 (1886).

Where listers made alterations and corrections to list subsequent to its being deposited with town clerk, the revised list would be made valid by act of Legislature declaring it legal and valid as altered and corrected. Willard v. Pike, 59 Vt. 202, 9 A. 907, 1886 Vt. LEXIS 37 (1886).

When time within which listers are required by law to return list to town clerk has elapsed and list has been returned, it then becomes the basis of taxation for the ensuing year, and neither listers nor selectmen, nor any other person, has any legal power to make any alterations in the bill, nor any additions to it. Downing v. Roberts, 21 Vt. 441, 1849 Vt. LEXIS 52 (1849).

Filing with town clerk.

The filing of the grand list of taxable real property in the town clerk’s office is a mandatory annual event. In re Summit Ventures, Inc., 135 B.R. 483, 1991 Bankr. LEXIS 1862 (Bankr. D. Vt. 1991).

Landowners’ grand list was completed, subject to correction or amendment upon appeal, when it was filed in the office of the town clerk, thus town had a basis for tax assessment made against the land while the appraisal was being appealed and did not have to wait for the decision on appeal. Villeneuve v. Town of Underhill, 130 Vt. 446, 296 A.2d 192, 1972 Vt. LEXIS 298 (1972).

Rule that an officer will be presumed to have performed his duties satisfactorily required court, in absence of contrary allegation, to presume that grand list of town was duly filed and became the official grand list on May 25. Royalton Taxpayers Protective Association v. Wassmansdorf, 128 Vt. 153, 260 A.2d 203, 1969 Vt. LEXIS 218 (1969).

It need not appear on list that it was completed and lodged in town clerk’s office on or before the day required by law. Blodgett v. Holbrook, 39 Vt. 336, 1866 Vt. LEXIS 85 (1866).

Good faith errors.

Validity of lists, when made in good faith, is always upheld if errors complained of are only result of mistake of judgment; thus, where erasures were claimed the court assumed that listers acted in good faith, as it did not appear that they were in fault in not making the list more perfect. Brock v. Bruce, 58 Vt. 261, 2 A. 598, 1885 Vt. LEXIS 22 (1885).

Where listers did not comply with law in ascertainment and appraisal of real and personal estate in neglecting to set in list $500.00 in money that should have been set to a ratable inhabitant, but no intentional wrong or fraud was attempted by them, the list was not thereby invalidated. Wilson v. Wheeler, 55 Vt. 446, 1882 Vt. LEXIS 66 (1882).

Liens.

It is the real property taxes themselves that are, when lawfully assessed, a lien established automatically upon all taxable realty within the town commencing with the date for filing the grand list with the town clerk. In re Summit Ventures, Inc., 135 B.R. 483, 1991 Bankr. LEXIS 1862 (Bankr. D. Vt. 1991).

Real property taxes become a first lien on taxable property underlying all other encumbrances, interests, or estates for a period for 15 years. In re Summit Ventures, Inc., 135 B.R. 483, 1991 Bankr. LEXIS 1862 (Bankr. D. Vt. 1991).

Oath and certificate.

A list is not legal that is not signed by a majority of the listers. Ferrisburg v. Birkett, 60 Vt. 330, 14 A. 88, 1888 Vt. LEXIS 149 (1888).

The appending to grand list of oath and certificate provided for in this section, although necessary for validity of tax assessed upon such list and to be done before the assessment is made, need not be done before the list is lodged in the town clerk’s office. Rowe v. Hulett, 50 Vt. 637, 1878 Vt. LEXIS 26 (1878).

A grand list not sworn to by the listers is invalid as a basis of taxation; and the legalization of such list by Legislature would not validate taxes previously assessed thereon. Town of Tunbridge v. Smith, 48 Vt. 648, 1876 Vt. LEXIS 62 (1876).

Omission of magistrate’s certificate upon list that the oath certified and signed by the listers was administered to them does not invalidate list, when, in fact, the oath was administered, and without magistrate’s certificate, presumption will be that the list was sworn to as stated in listers’ certificate. Blodgett v. Holbrook, 39 Vt. 336, 1866 Vt. LEXIS 85 (1866).

The grand list of a town does not become the legal basis of taxation until a majority of the listers have signed and sworn to a certificate thereon, as required by this section, and by § 2 of No. 47, of the acts of 1856. Reed v. Chandler, 32 Vt. 285, 1859 Vt. LEXIS 98 (1859).

Time of ownership.

Town’s interest in bankruptcy debtors’ real property arose on April 1, the date for determining record ownership of taxable real property and appraising its value. In re Summit Ventures, Inc., 135 B.R. 483, 1991 Bankr. LEXIS 1862 (Bankr. D. Vt. 1991).

§ 4152. Contents.

  1. 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.
    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.
    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.
    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.
  2. 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.
  3. 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.

HISTORY: 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.

History

Source.

1957, No. 221 , § 13. 1951, No. 17 , §§ 1, 2. 1949, No. 22 . V.S. 1947, § 730. 1947, No. 13 , § 2. 1935, No. 27 , § 3. P.L. § 685. G.L. § 795. 1910, No. 46 , § 1. P.S. § 571. V.S. § 433. 1882, No. 1 , § 34. R.L. § 348. G.S. 83, § 20. G.S. 16, § 6. 1855, No. 43 , § 19. 1847, No. 40 , § 1. 1841, No. 16 , § 14. 1825, No. 9 , §§ 16, 20. R. 1797, p. 571, § 9.

Revision note

—2008. In subdiv. (a)(7), substituted “section 3607a, subdivisions 3832(1), (6), and (7), and sections 3836, 3840, 3845, or 3847” for “sections 3607a, 3832(1), 3832(6), 3832(7), 3836, 3840, 3845, or 3847” to conform references to V.S.A. style.

Revision note—. Deleted subdivs. (5) and (6) and renumbered former subdiv. (7) as subdiv. (5) in subsec. (a), pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Amendments

—2013. Subdiv. (a)(6): Added “the insurance replacement value reported to the local assessing officials by the owner under section 3802a of this title, or” after “which are exempt,”.

Subsec. (c): Added.

—2003 (Adj. Sess.). Subdiv. (a)(9): Substituted “subdivision 5401(7)” for “section 5401(7)” and added “and housesites as defined under subdivision 6061(11) of this title”.

—1999. Subdiv. (a)(9): Deleted “declared” preceding “homesteads”.

—1997 (Adj. Sess.). Subdiv. (a)(9): Added “declared” before “homesteads” and added the language following “homesteads”.

—1997. Subdiv. (a)(9): Added.

—1995 (Adj. Sess.) Subsec. (a): Amended generally.

—1977. Substituted “director” for “commissioner of taxes”.

—1975 (Adj. Sess.). Subsec. (a): Existing unmarked paragraph designated as subsec. (a).

Subsec. (b): Added.

ANNOTATIONS

Boundary disputes.

As property owners, plaintiffs seeking declaratory judgment to have boundary line determined for tax purposes had the right to be taxed only once on their land, part of which was being taxed by each of two towns. Poulin v. Town of Danville, 128 Vt. 161, 260 A.2d 208, 1969 Vt. LEXIS 219 (1969).

Construction with other laws.

Provisions of § 3651 of this title that “Taxable real estate shall be set in list to last owner or possessor thereof, on April 1 in each year,” govern and control those of this section, that completed grand list shall contain a brief description, etc., of each separate parcel “of taxable real estate, owned by each taxpayer.” Doubleday v. Stockbridge, 109 Vt. 167, 194 A. 462, 1937 Vt. LEXIS 130 (1937), (Decided under prior law).

§ 3651 of this title, specifying to whom and where taxable real estate shall be set in the list; § 3691 of this title, containing like provisions as to personal estate; and this section, declaring the required particulars of completed grand list, are as applicable where taxpayer’s list is made up by the listers pursuant to § 4084 of this title owing to willful omission to return an inventory and completed grand list of taxpayer who has willfully omitted to return an inventory need not recite in detail action of the listers in making it. Smith v. Stannard, 81 Vt. 319, 70 A. 568, 1908 Vt. LEXIS 151 (1908), (Decided under prior law).

Contents of list.

Pursuant to subdiv. (a)(3) of this section, fourteen parcels of land owned by plaintiff city but located within the bounds of defendant town had to be treated as separate parcels for tax purposes. City of Montpelier v. Town of Berlin, 143 Vt. 291, 465 A.2d 1104, 1983 Vt. LEXIS 518 (1983), (Decided under prior law).

Where listers consolidated properties of petitioner and her husband into one complete farm unit and placed one valuation upon it, their action was unwarranted and unauthorized. In re Mallary, 127 Vt. 412, 250 A.2d 837, 1969 Vt. LEXIS 246 (1969).

Listers, as well as county board, have duty to list and appraise separate parcels of land according to their ownership or possession. In re Mallary, 127 Vt. 412, 250 A.2d 837, 1969 Vt. LEXIS 246 (1969).

Law requires all taxable property of inhabitants of town to be put into list each year and each list must be perfect in itself, without reference to any former list; and no taxes can be assessed against a person, either for real or personal property, unless such property be inserted in the current list, in force as basis for taxation for that year. Downing v. Roberts, 21 Vt. 441, 1849 Vt. LEXIS 52 (1849).

Defects in form.

Statutory regulations that relate to the rights of taxpayer are conditions precedent to legality of tax, but those for information of lister to promote method are directory; thus, the list defective in form as tested by this section, but which contained the necessary elements of a grand list so that what was wanting could be readily supplied by computation, was held valid in this respect. Willard v. Pike, 59 Vt. 202, 9 A. 907, 1886 Vt. LEXIS 37 (1886).

Mandamus.

The duties imposed upon the listers to include within the grand list the substantial information outlined within this section and under § 4111 of this title to lodge the book or books, required by law to be furnished for the abstract of individual lists and the grand list, with the town clerk, are ministerial in nature for purposes of determining whether a remedy in mandamus will lie. Bargman v. Brewer, 142 Vt. 367, 454 A.2d 1253, 1983 Vt. LEXIS 601 (1983).

Separate parcels.

Because a taxpayer’s three contiguous properties were one parcel for tax purposes, the taxpayer was obligated to make any lands comprising the parcel available for inspection, and when he refused to allow a complete inspection of the properties comprising his single parcel, including an inspection of the interior of any dwelling, the appeal was properly considered withdrawn. As the appeal was withdrawn at the Board of Civil Authority (BCA) level, the BCA made no findings as to the appropriate valuation, and the hearing officer had no jurisdiction to consider de novo the appraised value of the property. Rasmussen v. Town of Fair Haven, 2016 VT 1, 201 Vt. 88, 136 A.3d 569, 2016 Vt. LEXIS 4 (2016).

Four parcels of land that did not adjoin each other were improperly assessed as a single parcel. Bullis v. Town of Grand Isle, 151 Vt. 503, 561 A.2d 1359, 1989 Vt. LEXIS 89 (1989).

All relevant factors must be considered in determining whether or not property should be assessed as a single parcel, including whether the property was conveyed in one deed, the character of the land and the purposes for which it is used, whether separately deeded tracts are contiguous, and whether the property currently functions as one tract for the owner. Neun v. Town of Roxbury, 150 Vt. 242, 552 A.2d 408, 1988 Vt. LEXIS 159 (1988).

§ 4153. Repealed. 1995, No. 169 (Adj. Sess.), § 10, eff. May 15, 1996.

History

Former § 4153. Former § 4153, which related to the grand list book, was derived from 1949, No. 23 ; V.S. 1947, § 731; 1947, No. 13 , § 2; 1935, No. 27 , § 4; P.L. § 686; G.L. § 696; 1910, No. 46 , § 2; and amended by 1977, No. 105 , § 14(a).

§ 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.

History

Source.

V.S. 1947, § 743. P.L. § 698. 1933, No. 13 , § 1.

§ 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 744. P.L. § 699. 1933, No. 13 , § 2.

ANNOTATIONS

Generally.

Where after the discontinuance of taxpayers’ appeal, selectboard and listers of town certified, as provided by this section, that no statutory appeal from the appraisal of the listers and no suit to recover taxes paid under protest was then pending and endorsed their certificate to this effect upon the grand list book of the town, the list became the legal grand list of the town, and “its validity could not be put in issue by any party to any action in any hearing or trial in any court.” Rooney Vermont Associates v. Town of Pownal, 140 Vt. 150, 436 A.2d 733, 1981 Vt. LEXIS 574 (1981).

Grand lists are not subject to collateral attack when no statutory appeal has been taken from the appraisal of the listers and no suit to recover taxes paid under protest is entered before the grand list for that year is closed. Lewis v. Town of Brandon, 132 Vt. 37, 313 A.2d 673, 1973 Vt. LEXIS 253 (1973).

§ 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.

History

Source.

V.S. 1947, § 745. P.L. § 700. 1933, No. 13 , § 3.

§ 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.

History

Source.

V.S. 1947, § 746. P.L. § 701. 1933, No. 13 , § 4.

ANNOTATIONS

Generally.

Where after the discontinuance of taxpayers’ appeal, selectboard and listers of town certified, as provided by § 4157 of this title, that no statutory appeal from the appraisal of the listers and no suit to recover taxes paid under protest was then pending and endorsed their certificate to this effect upon the grand list book of the town, the list became the legal grand list of the town, and “its validity could not be put in issue by any party to any action in any hearing or trial in any court.” Rooney Vermont Associates v. Town of Pownal, 140 Vt. 150, 436 A.2d 733, 1981 Vt. LEXIS 574 (1981).

§ 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.

History

Source.

V.S. 1947, § 732. P.L. § 687. G.L. § 797. P.S. § 572. 1896, No. 12 , § 1.

§ 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.

HISTORY: Amended 1983, No. 85 , § 6.

History

Source.

V.S. 1947, § 775. 1939, No. 19 , § 1. P.L. § 729. G.L. § 864. 1915, No. 41 , § 1. 1912, No. 42 , § 7. P.S. §§ 534, 588. V.S. §§ 396, 449. R.L. §§ 311, 356. 1865, No. 21 , §§ 2, 3. 1862, No. 18 , § 2.

Amendments

—1983. Added the second sentence and substituted “July 7” for “the expiration of the month of June” following “after” in the present fourth sentence.

Article 2. Abstracts of Grand List

§ 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.

HISTORY: Amended 1987, No. 84 , § 9.

History

Source.

1957, No. 221 , § 14. V.S. 1947, § 758. 1947, No. 13 , § 2. P.L. § 712. 1933, No. 157 , § 650. 1919, No. 35 , § 1. G.L. § 818. 1812, No. 42 , § 13. 1910, No. 46 , § 10. P.S. § 591. R. 1906, § 540. V.S. § 453. R.L. §§ 358, 359. 1880, No. 85 , § 5. 1878, No. 102 , § 4. 1876, No. 15 , § 6. 1872, No. 5 , § 6. 1863, No. 17 , § 1.

Amendments

—1987. Section amended generally.

—1969. Rephrased certification paragraph.

§ 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.

History

Source.

V.S. 1947, § 759. P.L. § 713. G.L. § 819. 1912, No. 42 , § 12. P.S. § 592. R. 1906, § 541. V.S. § 454. R.L. § 360. 1880, No. 85 , § 4.

§ 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.

History

Source.

V.S. 1947, § 760. P.L. § 714. G.L. § 820. P.S. § 593. R. 1906, § 542. V.S. § 455. 1886, No. 11 , § 1. 1882, No. 1 , § 41. 1882, No. 3 1/2. R.L. § 361. 1880, No. 85 , § 1.

§ 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.

History

Source.

V.S. 1947, § 762. P.L. § 716. G.L. § 822. P.S. § 595. R. 1906, § 544. V.S. § 457. 1886, No. 11 , § 3. 1884, No. 2 , § 5. R.L. § 363. 1880, No. 85 , § 3.

§ 4185. Repealed. 2001, No. 63, § 283(c), eff. July 1, 2003.

History

Former § 4185. Former § 4185, relating to transmission to Director changes and remedy, was derived from V.S. 1947, § 761; P.L. § 715; G.L. § 821; 1915, No. 42 , § 1; 1910, No. 38 , § 20; P.S. § 594; R. 1906, § 543; V.S. § 456; 1886, No. 11 , § 2; 1884, No. 2 , § 4; R.L. § 364; 1876, No. 15 , § 6; 1872, No. 5 , § 6 and amended by 1977, No. 105 , § 14(a) and 1987, No. 84 , § 10.

§ 4186. Repealed. 2007, No. 190 (Adj. Sess.), § 9, eff. June 6, 2008.

History

Former § 4186. Former § 4186, relating to refunds based on false or incorrect abstracts, was derived V.S. 1947, § 764. P.L. § 718. G.L. § 824. 1915, No. 46 . 1912, No. 44 and amended by 1977, No. 105 , § 14(a); 1983, No. 195 (Adj. Sess.), § 5(b).

Subchapter 5. Hearings on Appraisals and Abstracts

ANNOTATIONS

Cited.

Cited in Bargman v. Brewer, 142 Vt. 367, 454 A.2d 1253, 1983 Vt. LEXIS 601 (1983).

§ 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.

HISTORY: Amended 1983, No. 85 , § 7.

History

Source.

1949, No. 21 , § 3. V.S. 1947, § 720. P.L. § 675. G.L. § 785. 1910, No. 46 , § 4. P.S. § 566. V.S. § 428. 1882, No. 2 , § 21. R.L. § 346. 1866, No. 14 . 1864, No. 64 , § 4. G.S. 83, § 27. 1855, No. 43 , § 26. 1851, No. 41 , § 2. 1844, No. 8 , § 3. 1841, No. 16 , §§ 17, 23. 1829, No. 11 , § 1. 1825, No. 9 , §§ 8, 13. R. 1797, p. 570, § 8. 1791, Jan., p. 16, § 10. 1787, p. 9.

Amendments

—1983. Substituted “20” for “11” following “May” in the first sentence, and “June 2” for “May 16” following “later than” in the third sentence.

ANNOTATIONS

Equitable relief.

Challenging, under §§ 4221 and 4222 of this title, the appraisal and listing of their property would not afford relief at law, precluding relief in equity, to landowners being taxed on their land by each of two towns due to boundary dispute as that procedure only involved the listers’ judgment as to fair market value. Poulin v. Town of Danville, 128 Vt. 161, 260 A.2d 208, 1969 Vt. LEXIS 219 (1969).

Estoppel.

Failure of town listers to notify plaintiff that contested taxes assessed of listers’ decision following meeting of listers and plaintiff to discuss the matter, contrary to listers’ assurance, estopped town from resisting plaintiff’s suit in equity for declaratory judgment on the ground that the tax appeal procedure of § 4404 of this title provided plaintiff with an adequate and unexhausted remedy. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 129 Vt. 1, 270 A.2d 584, 1970 Vt. LEXIS 194 (1970).

That property of taxpayer contesting assessment had been assessed at same amount for past 20 years without formal challenge of assessment did not, assuming the assessment was invalid, give town a prescriptive right to continue assessing the property at the same amount and receive a greater amount of taxes than it was entitled to. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 129 Vt. 1, 270 A.2d 584, 1970 Vt. LEXIS 194 (1970).

Time of hearing.

Statutory timelines for town listers to commence grievance hearings are directory rather than mandatory. Hartland Prop., LLC v. Town of Hartland, 2020 VT 56, 212 Vt. 417, 237 A.3d 696, 2020 Vt. LEXIS 56 (2020).

Commencement of lister grievance hearings after the statutorily designated date, with or without an extension from the Department of Taxes’ Division of Property Valuation and Review, does not invalidate an otherwise valid assessment. Thus, the town listers’ failure to commence grievance hearings by the appointed date did not invalidate the town’s 2018 reappraisal of a taxpayer’s property. Hartland Prop., LLC v. Town of Hartland, 2020 VT 56, 212 Vt. 417, 237 A.3d 696, 2020 Vt. LEXIS 56 (2020).

While listers, under §§ 4111(c) and 4341 of this title, are to determine place for hearing of aggrieved taxpayers, they have no authority respecting its time, which is definitely fixed by Legislature, its intention being made more certain by provision in this section that listers shall meet at place designated by them, at time fixed by statute, and not at time and place to be designated by them. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

Notice by listers of time when and place where they will meet and hear those aggrieved, which specifies place and day, but not the time of day, is good, unless party complaining can show that he has suffered injury by omission to state the hour. Smith v. Hard, 61 Vt. 469, 17 A. 481, 1889 Vt. LEXIS 68 (1889).

Cited.

Cited in Roy v. Town of Barnet, 147 Vt. 551, 522 A.2d 225, 1986 Vt. LEXIS 463 (1986); Alexander v. Town of Barton, 152 Vt. 148, 565 A.2d 1294, 1989 Vt. LEXIS 283 (1989).

§ 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.

HISTORY: Amended 1973, No. 86 , § 1, eff. for the tax year beginning April 1, 1974, and thereafter.

History

Source.

V.S. 1947, § 726. P.L. § 681. G.L. § 791. 1910, No. 47 , § 6.

Amendments

—1973. Provided for consideration of objections filed if person filing fails to appear.

ANNOTATIONS

Review process.

Where taxpayer’s declaratory judgment action sought a declaration that its property was exempt from property taxation, because its factual statement made it clear that the action was, in essence, an appeal of a particular year’s assessment, in order to maintain the integrity of the assessment and review process, specifically to give the listers the opportunity to inspect and assess the property on the relevant date, taxpayer would be required to first go through the assessment review process and then use an appeal to contest that assessment decision, including the portion of exempt property. Our Lady of Ephesus House of Prayer, Inc. v. Town of Jamaica, 2005 VT 16, 178 Vt. 35, 869 A.2d 145, 2005 Vt. LEXIS 13 (2005).

Writing.

Requirement of this section that aggrieved persons file their objections in writing was satisfied by written notes of grievances taken by chairman of board of listers on date of appeal. Gionet v. Town of Goshen, 152 Vt. 451, 566 A.2d 1349, 1989 Vt. LEXIS 187 (1989).

§ 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.

History

Source.

V.S. 1947, § 727. P.L. § 682. G.L. § 792. 1910, No. 47 , § 6.

§ 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.

HISTORY: Amended 1983, No. 85 , § 8; 1993, No. 49 , § 23, eff. May 28, 1993.

History

Source.

V.S. 1947, § 728. P.L. § 683. G.L. § 793. 1910, No. 47 , § 8.

Amendments

—1993. Substituted “June 9” for “June 6” preceding “notice” in the second sentence and “within 14 days of the mailing of the written notice of amendments” for “by June 19” following “clerk” in the third sentence.

—1983. Added “By June 6” preceding “notice” in the second sentence, and added the third and fourth sentences.

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.

HISTORY: Amended 2005, No. 38 , § 14, eff. June 2, 2005; 2019, No. 175 (Adj. Sess.), § 1, eff. Oct. 8, 2020.

History

Source.

1957, No. 78 , § 1. V.S. 1947, § 733. 1943, No. 15 , § 1. 1934 S., No. 2, § 1. P.L. § 688. G.L. § 798. 1910, No. 28 , § 1. P.S. § 573. V.S. § 434. 1882, No. 1 , § 36. R.L. § 352. 1874, No. 7 , § 1.

Revision note—

A last sentence of this section which read “For the sole purpose of enabling a resident to make application for an automobile operator’s license in conformity with the provisions of section 604 of Title 23, and without conferring upon such resident further rights or privileges under any other provisions of law, the listers are authorized to certify as to taxable polls omitted from the grand list for any cause during the previous year at any time during the year ensuing, such omission and their certificate shall be recorded by the town clerk in the grand list book.” was deleted as obsolete in light of the repeal of 23 V.S.A. § 604 by 1977, No. 118 (Adj. Sess.), § 12.

Deleted sentence that read: “If for any cause taxable polls are omitted from the grand list when filed in the office of the town clerk, on or before December 31, the listers shall certify such omission to the town clerk, who shall record such certificate in the grand list book, and thereupon such proceedings shall be had in relation thereto and the tax thereon as is provided in case of property is so omitted.” pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statute.

Amendments

—2019 (Adj. Sess.). Inserted “on or”.

—2005. Substituted “selectboard” for “selectmen” and added the proviso.

CROSS REFERENCES

Assessment on corrected or amended list, see § 4604 of this title.

Taxes based on corrected or amended list, see § 4797 of this title.

§ 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.

History

Source.

V.S. 1947, § 736. P.L. § 691. G.L. § 801. 1910, No. 47 , § 13.

CROSS REFERENCES

Taxes assessed on defective list, see § 4603 of this title.

§ 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.

History

Source.

V.S. 1947, § 737. P.L. § 692. G.L. § 802. 1910, No. 47 , § 14.

§ 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.

History

Source.

V.S. 1947, § 738. P.L. § 693. G.L. § 803. 1910, No. 47 , § 15.

§ 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.

HISTORY: Amended 1957, No. 219 , § 2, eff. July 1, 1961.

History

Source.

V.S. 1947, § 742. P.L. § 697. G.L. § 807. 1910, No. 47 , § 26.

Amendments

—1957. “Appraisal” substituted for “quadrennial appraisal”.

Subchapter 7. Other Tax Lists

§ 4301. Basis for county taxes.

  1. 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.
  2. 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 763. P.L. § 717. G.L. § 823. P.S. § 596. R. 1906, § 545. V.S. § 458. 1886, No. 11 , § 4. R.L. § 362. 1880, No. 85 , § 2.

Revision note—

Deleted “, with the addition of the total amount of taxable polls in the town, unorganized town or gore,” following “aggregate value” in the first sentence pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Amendments

—2011 (Adj. Sess.). Subsecs. (a) and (b): Added “and the unified towns and gores of Essex County” following “gore,” and “county,” respectively.

—1999. Section amended generally.

—1977. Substituted “director” for “commissioner”.

—1971. Section amended generally.

§ 4302. Repealed. 1999, No. 49, § 6(a), eff. June 2, 1999.

History

Former § 4302. Former § 4302, relating to list for State taxes, was derived from V.S. 1947, § 765; P.L. § 719; 1929, No. 23 , § 1; G.L. § 825; 1910, No. 38 , § 21; P.S. § 597; V.S. § 459; 1888, No. 5 , § 1; 1886, No. 11 , § 5; 1882, No. 1 , § 41; R.L. § 366; 1868, No. 4 , § 2; 1866, No. 221 , and amended by 1977, No. 105 , § 14(a).

§ 4303. Repealed. 1999, No. 49, § 6(b), eff. June 2, 1999.

History

Former § 4303. Former § 4303, relating to list for county taxes, was derived from 1971, No. 73 , § 8; V.S. 1947, § 766; P.L. § 720; 1933, No. 157 , § 658; 1929, No. 23 , § 2; G.L. § 826; 1910, No. 38 , § 22; P.S. § 598; V.S. § 460; 1886, No. 11 , § 7, and amended by 1977, No. 105 , § 14(a).

§ 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.

History

Source.

V.S. 1947, § 735. P.L. § 690. G.L. § 800. P.S. § 575. V.S. § 436. 1884, No. 66 , § 1.

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.

HISTORY: 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.

History

Source.

V.S. 1947, § 756. 1939, No. 18 , § 1. P.L. § 711. 1923, No. 23 , § 1. 1921, No. 36 , § 2. G.L. § 817. 1910, No. 46 , § 7. P.S. § 590. V.S. § 451. 1890, No. 14 , § 1. 1884, No. 3 , § 1.

Amendments

—1995 (Adj. Sess.) Rewrote clause (8).

—1993. Rewrote the first sentence.

—1979 (Adj. Sess.). In clause (9) substituted the word “listers” for “lister”; and in clause (10) deleted reference to towns of less than one thousand inhabitants.

—1977. Substituted “director” for “commissioner”.

Repeal of prospective repeal of section. 2001, No. 63 , § 283(c) provided in part that section 163e of that act, which repealed §§ 3462, 4185, and 4341 of this title, shall take effect for fiscal year 2004 and thereafter. However, 2001, No. 142 (Adj. Sess.), § 314 deleted the reference to § 4341, effectively repealing the prospective repeal.

ANNOTATIONS

Late filing.

Abstract of individual tax lists of town having population of approximately 1,500, lodged in town clerk’s office of such town on day after that required by this section, was invalid. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928), (Decided under prior law).

Pleading.

In suit to enforce collection of taxes, answer alleging that abstract was not lawfully made up in that same was not “filed” in time required by law, was sufficient to raise question whether abstract was “lodged” in town clerk’s office within time required by this section. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

Time limitations for hearings.

For towns that have between 3,000 and 4,000 inhabitants, the date by which a meeting of the board of civil authority must be held to consider property valuation grievances is extended by 30 days. The board has a total of 44 days (14 days under § 4404(b) plus 30 days under § 4341(4)) to initiate hearings in each appeal. Rhodes v. Town of Georgia, 166 Vt. 153, 688 A.2d 1309, 1997 Vt. LEXIS 7 (1997).

Even if court agreed with the Town that the ten-day time requirement is not mandatory as long as the 40-day deadline is met, the decisions of the Georgia Board of Civil Authority must still be affirmed as the Town did not meet the 40-day deadline in any case. Rhodes v. Town of Georgia, 166 Vt. 153, 688 A.2d 1309, 1997 Vt. LEXIS 7 (1997).

Cited.

Cited in Miller v. Town of West Windsor, 167 Vt. 588, 704 A.2d 1170, 1997 Vt. LEXIS 282 (1997) (mem.).

§ 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 757. 1939, No. 18 , § 2.

Revision note

—2021. Substituted “section 4341 of this title” for “the preceding section” for clarity.

Amendments

—2019 (Adj. Sess.). Deleted “and shall be recorded in the office of the town clerk” at the end.

—1993. Deleted “action in tax matters” preceding “may be further”.

—1977. Substituted “director” for “commissioner of taxes”.

ANNOTATIONS

Cited.

Cited in Bargman v. Brewer, 142 Vt. 367, 454 A.2d 1253, 1983 Vt. LEXIS 601 (1983).

Chapter 131. Appeals

Subchapter 1. To Board of Civil Authority

ANNOTATIONS

Cited.

Cited in Bargman v. Brewer, 142 Vt. 367, 454 A.2d 1253, 1983 Vt. LEXIS 601 (1983).

§§ 4401, 4402. Repealed. 1957, No. 219, § 4, eff. July 1, 1961.

History

Former §§ 4401, 4402. Repeal of §§ 4401, 4402 of this title took effect prior to July 1, 1961, in towns or cities so voting.

Former § 4401 relating to appeal from listers’ appraisal; time and notice was derived from V.S. 1947, § 776; P.L § 730; G.L. § 832; 1910, No. 39 , § 1; P.S. § 530; 1906, No. 29 , § 2; 1902, No. 14 , § 1; V.S. § 392; 1890, No. 11 , §§ 1, 2. R.L. § 297; 1876, No. 15 , § 2; 1872, No. 5 , § 2; 1825, No. 9 , § 23; 1820, p. 4, § 4.

Former § 4402 relating to meeting of board of civil authority on appeal from listers’ appraisal was derived from V.S. 1947, § 777; P.L. § 731; G.L. § 883; P.S. § 531; V.S. § 393; R.L. § 298; 1876, No. 15 , § 2; 1872, No. 5 , § 2; 1825, No. 9 , § 23; 1820, p. 4, § 4.

§ 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.

HISTORY: Amended 1983, No. 85 , § 9.

History

Source.

1957, No. 260 , § 4.

Amendments

—1983. Substituted “fourteen” for “five” preceding “days”, inserted “mailing of” preceding “notice”, and deleted “and 4441-4451” following “4407-4410”.

§ 4404. Appeals from listers as to grand list.

  1. 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.
  2. 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.
  3. 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 such 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 such action, by certified mail. Thereupon the appraisal so determined pursuant to this subsection shall become a part of the grand list of such person.
  4. 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, his or her 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.

HISTORY: 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.

History

Source.

1949, No. 24 . V.S. 1947, § 778. P.L. § 732. G.L. § 834. 1915, No. 1 , § 56. 1910, No. 46 , § 5. P.S. § 567. 1906, No. 32 , § 1. V.S. § 429. 1882, No. 2 , § 22. R.L. § 296. G.S. 83, § 28. 1855, No. 43 , § 27. 1851, No. 41 , § 2. 1842, No. 1 , §§ 13, 14. 1841, No. 16 , § 24. 1825, No. 9 , §§ 12, 13. R. 1797, p. 570, § 8. 1791, Jan., p. 16, § 10. 1787, p. 9.

Revision note—

Substituted “therefor” for “therefore” following “warning” in the second sentence of subsec. (b) to correct a typographical error.

Amendments

—2019 (Adj. Sess.) Subsec. (b): Substituted “an agent designated by the legislative body,” for “the agent of the town to prosecute and defend suits” in the last sentence.

—1995 (Adj. Sess.) Subsec. (c): Inserted “for the year for which appeal is being made” preceding “shall be set” in the fifth sentence.

—1993 (Adj. Sess.). Subsec. (c): Substituted “30” for “thirty” in the second sentence, added the third sentence, substituted “15” for “ten” and deleted “committee” preceding “report” in the fourth sentence, and inserted “and if the appeal is not withdrawn by filing written notice of withdrawal with the board or deemed withdrawn as provided in this subsection” following “subsection” and substituted “except, if” for “provided that in the event” following “listers” in the fifth sentence.

—1993. Subsec. (a): Substituted “within 14 days after the date of notice thereof” for “except as otherwise provided, on or before June 19” preceding “a person” and inserted “or her” following “lodging his” and made other minor changes in punctuation in the first sentence.

Subsec. (b): Substituted “14 days after the last date allowed for notice of appeal” for “June 22” following “later than” and inserted “or she” preceding “shall designate” in the first sentence.

—1983. Subsec. (a): Substituted “June 19” for “May 20” following “on or before” in the first sentence.

Subsec. (b): Substituted “June 22” for “May 23” following “not later than” in the first sentence.

Subsec. (c): Substituted “notice of decision, with reasons” for “findings” preceding “in the premises” and “notice” for “findings” preceding “with the town clerk” in the third sentence, “substantially comply with” for “carry out” preceding “the requirements” in the fourth sentence and divided the former fourth sentence into the present fourth and fifth sentences by substituting language beginning “provided that in the event” and continuing to the end of the present fourth sentence for “and.”

—1973. Subsec. (c): Omitted reference to registered mail and amended generally.

—1963. Subsec. (c): Added next to last sentence deeming appraisal affirmed on failure of board to file finding, and provision for notice and appeal.

—1961. Subsec. (c): Inserted time limits for report of the committee and certification of findings of the board.

—1959. Amended subsecs. (b), (c), and (d) of this section to provide in (b), notice to chairman of the board; by inserting provision in (c) as to inspection by a committee and for notice to appellant; and by substituting in (d) “while convened to hear and determine any appeals” for “while acting on an appeal in which the appellant is interested” and by adding provision relating to defense of suit by listers and agents.

1995 (Adj. Sess.) amendment. 1995, No. 169 (Adj. Sess.), § 27, eff. May 15, 1996, provided in part that § 12 of that act, which amended this section, would be retroactive to Jan. 1, 1991.

Transitional provisions. 2019, No. 84 (Adj. Sess.), § 12 provides: “Any elected town agent in office on the effective date of this act [July 1, 2020] may serve the remainder of his or her term.”

Municipal quasi-judicial proceedings; temporary suspension of in-person hearing and inspection requirements. 2019, No. 106 (Adj. Sess.), § 1(b)(1) provides: “Notwithstanding 32 V.S.A. § 4404(c) , during a declared state of emergency under 20 V.S.A. chapter 1 due to COVID-19, a board of civil authority 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.”

2019, No. 106 (Adj. Sess.), § 1(b)(3) provides: “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 or hearing officer conducting the inspection.”

CROSS REFERENCES

Extensions of time, see chapter 129, subchapter 8 of this title.

ANNOTATIONS

Constitutionality.

The 1996 amendment of subsec. (c) of this section violated the separation of powers required by the Vermont Constitution, because the addition of the language “for the year for which appeal is being made” to the description of the rollback penalty applicable when there has been a complete reappraisal had the effect of undoing a final determination of the Supreme Court and divested taxpayers of a vested right. Burton v. Town of Salisbury, 173 Vt. 177, 790 A.2d 394, 2001 Vt. LEXIS 413 (2001).

Actions at law.

In case of illegal assessment of taxes, taxpayer is not confined to statutory remedy of appeal from decision of listers to board of civil authority and thereafter to Commissioner of Taxes, but may recover money paid under protest in action at law. National Metal Edge Box Co. v. Readsboro, 94 Vt. 405, 111 A. 386, 1920 Vt. LEXIS 225 (1920).

Construction with other law.

In this section, use of word “shall” with respect to procedures to be followed makes it mandatory that board of civil authority follow the procedures. Punderson v. Town of Chittenden, 136 Vt. 221, 388 A.2d 373, 1978 Vt. LEXIS 722 (1978).

Decision of board.

Determination of board of civil authority on appeal from decision of listers is a final judgment, not subject to collateral attack, and equity will not interfere to restrain collection of taxes, upon allegation of fraud relating solely to action of listers in making the original assessment. Phillips v. Bancroft, 75 Vt. 357, 56 A. 9, 1903 Vt. LEXIS 140 (1903).

Effect of appeal.

Although the town argued that the 30-day deadline within which an inspection committee must report to the board of civil authority concerning the first appeal from a property valuation began to run upon the conclusion of the last hearing, on its face § 4404(c) of this title fails to support the town’s position. While the first sentence of § 4404(c) speaks in the plural, “appeals,” this language is not in a context that suggests that time limits for multiple appeals should be aggregated; the plural usage is natural and logical because the purpose of the sentence is to describe the responsibilities of the board of civil authority at the meeting mandated by § 4404(b)—it is responsible for hearing all appeals. It is the second sentence of § 4404(c) that prescribes the time limit for inspections, and this sentence speaks in the unambiguous singular. Rhodes v. Town of Georgia, 166 Vt. 153, 688 A.2d 1309, 1997 Vt. LEXIS 7 (1997).

The Georgia Board of Civil Authority has a total of 44 days (14 days under § 4404(b) plus 30 days under § 4341(4)) to initiate hearings in each appeal. Rhodes v. Town of Georgia, 166 Vt. 153, 688 A.2d 1309, 1997 Vt. LEXIS 7 (1997).

Although a town asserted that the requirements of § 4404(c) of this title are met if the board of civil authority files its notice of decision within 40 days of the last property valuation appeal heard, regardless of whether it meets the 10-day filing deadline imposed by the statute, the deadlines for each appeal commence after the hearing on that appeal, not after the final hearing. Rhodes v. Town of Georgia, 166 Vt. 153, 688 A.2d 1309, 1997 Vt. LEXIS 7 (1997).

When appeal to selectmen is taken from assessment by listers, effect is to suspend power of listers to act upon subject. Fuller v. Gould, 20 Vt. 643, 1848 Vt. LEXIS 90 (1848).

Estoppel.

Failure of town listers to notify plaintiff which contested taxes assessed of their decision following meeting of listers and plaintiff to discuss the matter, contrary to lister’s assurance, estopped town from resisting plaintiff’s suit in equity for declaratory judgment on the ground that the tax appeal procedure of this section provided plaintiff with an adequate and unexhausted remedy. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 129 Vt. 1, 270 A.2d 584, 1970 Vt. LEXIS 194 (1970).

Failure to follow section.

In case arising from a townwide reappraisal of property, where taxpayers appealed the listed value of their property for that year to the board of civil authority pursuant to this section, based on holding that there was no time limit to the rollback penalty to which taxpayers were entitled, the same rollback penalty they received in the first year of the reappraisal applied to the following two years in which they did not file appeals. Burton v. Town of Salisbury, 173 Vt. 177, 790 A.2d 394, 2001 Vt. LEXIS 413 (2001).

There was no legislative intent to impose remedy found in subdiv. (c) of this section when minor delays occur in board of civil authority hearings, and it was sufficient that board substantially complied with requirements of this section. Miller v. Town of West Windsor, 167 Vt. 588, 704 A.2d 1170, 1997 Vt. LEXIS 282 (1997) (mem.).

When board of civil authority does not carry out the requirements of subsec. (c) of this section, penalty which fixes tax at previous year’s figure is effective for only one year, not for subsequent tax years. Spears v. Town of Enosburg, 153 Vt. 259, 571 A.2d 604, 1989 Vt. LEXIS 252 (1989).

On appeal of property valuation, State board of appraisers properly imposed sanction pursuant to subsec. (c) of this section of setting values of plaintiffs’ properties in the grand list at the amount set before the appealed change was made, where during the hearing plaintiffs disclosed the fact that only two members of the board of civil authority had viewed the properties, rather than three as mandated by subsec. (c), and plaintiffs specifically requested the relief imposed. Villeneuve v. Town of Cambridge, 148 Vt. 15, 527 A.2d 659, 1987 Vt. LEXIS 443 (1987).

The Division of Property Valuation and Review properly reinstated the assessments of three taxpayers to the levels in force before the appealed changes in the appraisals were made by city’s listers where it was uncontested that each of the properties was only inspected by two of the three members of the responsible committee of the city’s board of civil authority, and, since the inspection by only two committee members was patently defective under subsec. (c) of this section, the remedy of reinstating the old assessment was mandatory. City of Winooski v. Barnes, 142 Vt. 27, 451 A.2d 1140, 1982 Vt. LEXIS 602 (1982).

—Pursuit of merits of appeal.

In case arising from a townwide reappraisal of property, where taxpayers renewed their appeal from the listed value of their property, because they made the deliberate choice not to avail themselves of the rollback penalty under the statute and instead sought to pursue the merits of the appeal, they could not pursue both the merits of the appeal and retain an entitlement to the rollback penalty; what they were entitled to was a hearing on the merits of their appeal and a determination of their property value. Burton v. Town of Salisbury, 173 Vt. 177, 790 A.2d 394, 2001 Vt. LEXIS 413 (2001).

Inclusion of property in inventory.

Where nontaxable accounts were included in a taxpayer’s inventory on insistence of listers who took inventory, and subject to taxpayer’s objection that they were not taxable, taxpayer was not estopped from claiming that assessment of the accounts was illegal. National Metal Edge Box Co. v. Readsboro, 94 Vt. 405, 111 A. 386, 1920 Vt. LEXIS 225 (1920).

Inspection.

Though the statute governing appeals from listers as to grand list does not set forth precisely what the inspection entails, the plain meaning of the statutory language, together with the purpose of the statute, imply that an inspection entails a careful examination of the property, which would necessarily have to include an inspection of the interior of any dwelling. Garbitelli v. Town of Brookfield, 2009 VT 109, 186 Vt. 648, 987 A.2d 327, 2009 Vt. LEXIS 128 (2009) (mem.).

Absence of an adequate inspection by the State appraiser upon appeal of the board of civil authority decision demands dismissal. Inherent in such an appeal is the presumption that the challenged appraisal is valid, and the duty of overcoming this presumption of validity lies with the aggrieved taxpayer; in the absence of an adequate inspection, there is simply no way that the taxpayer can present the evidence needed to extinguish this presumption. Garbitelli v. Town of Brookfield, 2009 VT 109, 186 Vt. 648, 987 A.2d 327, 2009 Vt. LEXIS 128 (2009) (mem.).

Statutes clearly require an inspection at both the board of civil authority and State appraiser appeals, and neither the board of civil authority nor the State appraiser is afforded discretion to ignore this requirement. Garbitelli v. Town of Brookfield, 2009 VT 109, 186 Vt. 648, 987 A.2d 327, 2009 Vt. LEXIS 128 (2009) (mem.).

State appraiser properly dismissed a taxpayer’s appeals from reappraisals on the ground that the taxpayer had refused to allow a full interior inspection. The limited inspections the taxpayer did allow were insufficient to overcome the presumption in favor of the board of civil authority’s determination; estoppel did not apply because the taxpayer offered no evidence demonstrating that the State appraiser intended to induce reliance on the sufficiency of a limited inspection and because the taxpayer chose to limit the inspection of his properties; and although it was inappropriate for the town appraiser to communicate with the State appraiser while the taxpayer’s appeals were pending, the statutes requiring inspection did not allow the State appraiser any discretion to ignore this requirement. Garbitelli v. Town of Brookfield, 2009 VT 109, 186 Vt. 648, 987 A.2d 327, 2009 Vt. LEXIS 128 (2009) (mem.).

The word “inspected”, in this section’s provision that property the appraisal of which is being appealed shall be inspected by a committee of at least three members of the board of civil authority, is to be taken in its ordinary sense, unless that would lead to an unintended result. Devoid v. Town of Middlebury, 134 Vt. 69, 350 A.2d 349, 1975 Vt. LEXIS 334 (1975).

Provision in subsec. (c) of this section that property shall be inspected by a committee of at least three members of the board of civil authority does not require the members of the committee to carry out the inspection simultaneously, and inspection was proper where two inspected at the same time and the third at another time. Devoid v. Town of Middlebury, 134 Vt. 69, 350 A.2d 349, 1975 Vt. LEXIS 334 (1975).

Judicial nature of board function.

Selectmen, on appeals to them, act in quasi-judicial capacity and have no right to prejudge plaintiff’s case, as law always hears before it condemns. Howes v. Bassett, 56 Vt. 141, 1883 Vt. LEXIS 91 (1883).

Power of board.

An authority determining property taxes is not free to adjust the rate of taxation so as to bring about equitable results among taxable properties. Town of Barnet v. New England Power Co., 130 Vt. 407, 296 A.2d 228, 1972 Vt. LEXIS 291 (1972).

Selectmen, on appeal, are not authorized to raise assessment above sum established by the listers, as the word “appeal” denotes an application for relief, and therefore the power of either board is limited to the granting of relief by reducing the assessment complained of, or to the denial of any relief. Leach v. Blakely, 34 Vt. 134, 1861 Vt. LEXIS 31 (1861).

Reasons for decision.

Board of civil authority was not required to explain specifically why it changed values set by listers, and board’s explanation, although brief, substantially complied with its statutory responsibility to provide a notice of decision “with reasons.” Miller v. Town of West Windsor, 167 Vt. 588, 704 A.2d 1170, 1997 Vt. LEXIS 282 (1997) (mem.).

Where taxpayers’ sole claim on appeal to board of civil authority was that they had been discriminated against compared to certain other named landowners, board of civil authority determination that taxpayers’ assessment was similar to assessments of surrounding land was sufficient to comply with subsec. (c) of this section, requiring board of civil authority to state reasons for its decision. Harris v. Town of Waltham, 158 Vt. 477, 613 A.2d 696, 1992 Vt. LEXIS 79 (1992).

Scope of appeal.

Use of the term “property” in the statute governing appeals from listers as to grand lists plainly refers to a “parcel” because “parcels,” and not their component parts, are what must be included in the grand list. The appraisal at issue is the appraisal of the parcel as a whole because, again, this is what is reflected in the grand list. Nothing in the statute allows a taxpayer to single out a particular component of the taxpayer’s parcel and appeal only the valuation of that component. Rasmussen v. Town of Fair Haven, 2016 VT 1, 201 Vt. 88, 136 A.3d 569, 2016 Vt. LEXIS 4 (2016).

Taxpayers’ complaints that board of civil authority failed to address value of their building or to find fair market value were unavailing, since taxpayers raised no issue about building before board of civil authority and did not attack listers’ determination of fair market value. Harris v. Town of Waltham, 158 Vt. 477, 613 A.2d 696, 1992 Vt. LEXIS 79 (1992).

Question of unequal taxation of property is a matter for the courts, and cannot be raised by a tax appeal. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 129 Vt. 1, 270 A.2d 584, 1970 Vt. LEXIS 194 (1970).

Vacation of assessment.

Where, upon appeal of person assessed to selectmen, one of the listers, with the consent of another, entered upon the list in the town clerk’s office that the assessment was vacated, so that no action was taken by the selectmen and the person assessed did not appear before them, it was competent for listers to treat the entry of vacation as error and to restore the assessment as it originally stood, though the two who vacated the assessment would be liable for damages if the matter were properly alleged. Fuller v. Gould, 20 Vt. 643, 1848 Vt. LEXIS 90 (1848).

Withdrawal of appeal.

Because a taxpayer’s three contiguous properties were one parcel for tax purposes, the taxpayer was obligated to make any lands comprising the parcel available for inspection, and when he refused to allow a complete inspection of the properties comprising his single parcel, including an inspection of the interior of any dwelling, the appeal was properly considered withdrawn. As the appeal was withdrawn at the board of civil authority level, the board of civil authority made no findings as to the appropriate valuation, and the hearing officer had no jurisdiction to consider de novo the appraised value of the property. Rasmussen v. Town of Fair Haven, 2016 VT 1, 201 Vt. 88, 136 A.3d 569, 2016 Vt. LEXIS 4 (2016).

Cited.

Cited in Heindel v. Town of Grafton, 140 Vt. 147, 435 A.2d 695, 1981 Vt. LEXIS 565 (1981); Corrette v. Town of St. Johnsbury, 140 Vt. 315, 437 A.2d 1112, 1981 Vt. LEXIS 619 (1981); Villeneuve v. Town of Waterville, 141 Vt. 154, 446 A.2d 358, 1982 Vt. LEXIS 498 (1982); Town of Cambridge v. Bassett, 142 Vt. 171, 453 A.2d 413, 1982 Vt. LEXIS 620 (1982); Kachadorian v. Town of Woodstock, 144 Vt. 348, 477 A.2d 965, 1984 Vt. LEXIS 481 (1984); City of Rutland v. McDonald's Corp., 146 Vt. 324, 503 A.2d 1138, 1985 Vt. LEXIS 432 (1985); Roy v. Town of Barnet, 147 Vt. 551, 522 A.2d 225, 1986 Vt. LEXIS 463 (1986); Adams v. Town of West Haven, 147 Vt. 618, 523 A.2d 1244, 1987 Vt. LEXIS 434 (1987); Kachadorian v. Town of Woodstock, 149 Vt. 446, 545 A.2d 509, 1988 Vt. LEXIS 57 (1988); Littlefield v. Town of Brighton, 151 Vt. 600, 563 A.2d 998, 1989 Vt. LEXIS 115 (1989); Alexander v. Town of Barton, 152 Vt. 148, 565 A.2d 1294, 1989 Vt. LEXIS 283 (1989); Elliott v. Town of Barnard, 153 Vt. 306, 571 A.2d 653, 1989 Vt. LEXIS 258 (1989).

Notes to Opinions

Time for appeal.

Commissioner of Taxes is without jurisdiction to grant extension of time for taking appeal from filing of grand list. 1952-54 Vt. Op. Att'y Gen. 404.

§ 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.”)

History

Source.

V.S. 1947, § 779. P.L. § 733. G.L. § 835. P.S. § 568. V.S. § 430. 1882, No. 2 , § 23.

§ 4406. Repealed.

History

Former § 4406. Former § 4406, relating to appeals by poll taxpayers, was repealed pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

§ 4406 was derived from V.S. 1947, § 781. P.L. § 735. G.L. § 837. 1915, No. 48 , § 13.

§ 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.

HISTORY: Amended 1983, No. 85 , § 11; 1991, No. 129 (Adj. Sess.), § 1; 1993, No. 49 , § 7, eff. May 28, 1993.

History

Source.

V.S. 1947, § 782. P.L. § 736. G.L. § 838. 1910, No. 47 , § 9.

Amendments

—1993. Substituted “14 days” for “fourteen days” preceding “after the date” and for “fifteen days from and” following “later than” in the first sentence.

—1991 (Adj. Sess.). In the first sentence inserted “or her” following “his” and “or city” following “town”, deleted “by him” preceding “determined”, inserted “by the clerk” thereafter, and substituted “fifteen” for “ten” following “later than” and “last date allowed for” for “date of such” following “after the”.

—1983. Substituted “fourteen” for “five” preceding “days” and added “of appeal” following “notice” in the first sentence.

§ 4408. Hearing by board.

  1. 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.
  2. , (c)[Repealed.]

HISTORY: 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.

History

Source.

V.S. 1947, § 783. P.L. § 737. G.L. § 839. 1910, No. 47 , § 10.

Amendments

—2011 (Adj. Sess.). Subsecs. (b), (c): Repealed.

—2011. Subsec. (b): Deleted “and unified towns and gores” following “gores” at the end of the first sentence.

—2009 (Sp. Sess.). Subsec. (a): Added the subsection designation.

Subsecs. (b) and (c): Added.

—1971. Section amended generally.

Applicability of subsecs. (b) and (c). 2009, No. 1 (Sp. Sess.), § H.58(1) provides that H.22 [which amended this section by adding subsecs. (b) and (c)] shall apply to appeals filed on or after July 1, 2009.

§ 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.

HISTORY: Amended 1971, No. 73 , § 10, eff. April 16, 1971; 1973, No. 104 , § 3, eff. April 25, 1973.

History

Source.

V.S. 1947, § 784. 1939, No. 20 . P.L. § 738. G.L. § 840. 1910, No. 47 , § 11.

Amendments

—1973. Substituted “certified” mail for “registered mail, postage prepaid”.

—1971. Specified board’s authority.

§ 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.

History

Source.

V.S. 1947, § 785. P.L. § 739. G.L. § 841. 1910, No. 47 , § 12.

§ 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.

History

Source.

V.S. 1947, § 780. P.L. § 734. G.L. § 836. 1910, No. 46 , § 6, Subs. 4, 5.

Subchapter 2. To Director or to Superior Court

History

Repeal of subchapter. Former §§ 4441-4451, relating to appeals to Commissioner of Taxes, are now covered by § 4461 et seq.

§ 4441. Repealed. 1969, No. 253 (Adj. Sess.), § 3.

History

Former § 4441. Former § 4441, related to appeals to Commissioner of Taxes, was derived from V.S. 1947, § 786: P.L. § 740: G.L. § 842: 1915, No. 39 , 1: 1910, No. 40 , § 1, and amended by 1959, No. 158 , § 1.

§ 4442. Repealed. 1959, No. 158, § 5, eff. May 5, 1959.

History

Former §§ 4442. Former § 4442, relating to appeal bond, was derived from V.S. 1947, § 795; P.L. § 750; 1933, No. 157 , § 689; 1919, No. 36 , § 1; G.L. § 852; 1917, No. 44 , § 2; 1915, No. 39 , § 11; 1910, No. 40 , § 10.

§§ 4443-4451. Repealed. 1969, No. 253 (Adj. Sess.), § 3.

History

Former §§ 4443-4451. Former §§ 4443-4451, relating to appeals to Commissioner of Taxes, are now covered by § 4461 et seq.

Former § 4443 was derived from V.S. 1947, § 789; P.L. § 744; G.L. § 845; 1917, No. 44 , § 1; 1915, No. 39 , § 4; 1910, No. 40 , § 4, and amended by 1959, No. 158 , § 2.

Former § 4444 was derived from V.S. 1947, § 790; P.L. § 745; G.L. § 846; 1915, No. 39 , § 5; 1910, No. 40 , § 5; and amended by 1959, No. 158 , § 3.

Former § 4445 was derived from V.S. 1947, § 792; P.L. § 747; G.L. § 848; 1915, No. 39 , § 7, and amended by 1957, No. 219 , § 2.

Former § 4446 was derived from V.S. 1947, § 791; P.L. § 746; G.L. § 847; 1915, No. 39 , § 6; 1910, No. 40 , § 6.

Former § 4447 was derived from V.S. 1947, § 787; P.L. § 741; G.L. § 843; 1915, No. 39 , § 2; 1910, No. 40 , § 2.

Former § 4448 was derived from V.S. 1947, § 788; P.L. § 743; G.L. § 844; 1915, No. 39 , § 3; 1910, No. 40 , § 3.

Former § 4449 was derived from V.S. 1947, § 793; P.L. § 748; G.L. § 849; 1915, No. 39 , § 8; 1910, No. 40 , § 7.

Former § 4450 was derived from V.S. 1947, § 794; P.L. § 749; G.L. § 850; 1915, No. 39 , § 9; 1910, No. 40 , § 8, and amended by 1963, No. 138 .

Former § 4451 was derived from V.S. 1947, § 796; P.L. § 751; 1933, No. 157 , § 690; G.L. § 853; 1917, No. 44 , § 3; 1915, No. 39 , § 12; 1910, No. 40 , § 11.

§ 4452. Valuations.

  1. 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.
  2. 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.
  3. The Division shall prescribe the form of such report and the officer or officers who shall make oath thereto.
  4. The valuations so furnished shall be considered along with any other information as may reasonably be required by such listers in determining and fixing the valuations of such property for the purposes of local taxation.

HISTORY: Added 1975, No. 184 (Adj. Sess.); amended 1983, No. 152 (Adj. Sess.); 1999, No. 49 , § 29, eff. June 2, 1999.

History

Amendments

—1999. Subsec. (a): Substituted “of” for “in” following “May 1” and “department of taxes” for “agency of administration” following “review of the”.

Subsec. (d): Inserted “along with any other information as may reasonably be required” following “shall be considered”.

—1983 (Adj. Sess.). Subsec. (a): Substituted “division of property valuation and review of the agency of administration” for “public service board” preceding “shall” and “division” for “board” following “utility to the”.

Subsec. (b): Substituted “division” for “board” preceding “not later”.

Subsec. (c): Substituted “division” for “board” preceding “shall”.

§§ 4453-4460. [Reserved for future use]

§ 4461. Time and manner of appeal.

  1. 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.
  2. 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.
  3. [Repealed.]
  4. 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.

HISTORY: 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.

History

Amendments

—2019 (Adj. Sess.) Subsec. (b): Substituted “an agent designated by the legislative body of the town” for “the agent of the town to prosecute and defend suits in which the town is interested” in the first sentence. Substituted “the agent designated by the legislative body” for “the town agent” in the second sentence. Substituted “that” for “which” in the last sentence.

—2019. Subsec. (a): Substituted “after” for “of” in the third sentence, added “; 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” at the end of the sixth sentence. su

—2017. Subsec. (b): Inserted “business” following “at least six” and “until the six”, respectively, in the second sentence.

—2005 (Adj. Sess.). Subsecs. (a) and (b): Substituted “$70.00” for “$30.00” in the last sentence.

Subsec. (c): Repealed.

Subsec. (d): Substituted “pursuant to subchapter 5 of chapter 7” for “pursuant to chapter 7, subchapter 5”.

—1999. Subsec. (a): Inserted “within 30 days of entry of the decision of the board of civil authority” following “Civil Procedure” at the end of the third sentence and added the fifth sentence.

—1997 (Adj. Sess.). Subsec. (a): Rewrote the subsection, which had set forth detailed procedures for filing an appeal.

—1997. Substituted “$30.00” for “$15.00” in the sixth sentence of subsec. (a) and in the third sentence of subsec. (b) and added subsecs. (c) and (d).

—1993 (Adj. Sess.). Subsec. (a): Substituted “the board of listers of a town, or the selectboard” for “or the selectmen” preceding “of a town aggrieved” and inserted “of property valuation and review” following “director” in the first sentence, added the second through fifth sentences, rewrote the seventh sentence as the seventh and eighth sentences, and substituted “the taxpayer’s” for “his” preceding “agent” in the tenth sentence.

—1983 (Adj. Sess.). Subsec. (a): Deleted “by the presiding judge, sitting alone and” preceding “without jury” in the second sentence.

—1979 (Adj. Sess.). Subsec. (b): Added the words “not involving appeals of the applying taxpayers” at the end of the first sentence.

—1977. Subsec. (b): Act No. 66 added provisions which provide that town agent shall have at least 6 days after taxpayer’s application for appeal in which to take the appeal; and provided that entry fee shall be paid by the applicants.

Act. No. 105, substituted “director” for “commissioner”.

—1973 (Adj. Sess.). Changed “county court” to “superior court”.

—1971 (Adj. Sess.). Subsec. (a): Amended generally.

Subsec. (b): Substituted “county” court for court “of chancery” and added “entry” before “fee” at end.

1997 (Adj. Sess.) amendment. 1997, No. 161 (Adj. Sess.), § 26, provided in part that the amendment to subsec. (a) shall be retroactive to January 1, 1998.

Application and prospective repeal of 1993 (Adj. Sess.) amendment. 1993, No. 131 (Adj. Sess.), § 2, provided that the amendments to subsec. (a) by § 1 of that act shall apply to appeals from appraisals made with respect to property held on April 1, 1995 through April 1, 1996. § 2 of that act further provides for the repeal of the amendment to this section by § 1 of that act with respect to appeals from appraisals made with respect to property held after April 1, 1996 unless continued by further act of the General Assembly.

Transitional provisions. 2019, No. 84 (Adj. Sess.), § 12 provides: “Any elected town agent in office on the effective date of this act [July 1, 2020] may serve the remainder of his or her term.”

CROSS REFERENCES

Farmland appraisal contracts, see § 3846 of this title.

ANNOTATIONS

Appealable matters.

A taxpayer may appeal a reassessment of the taxpayer’s property to the Superior Court and, if the taxpayer shows that the taxpayer’s property is assessed at a higher percentage of fair market value than comparable properties in the town, the court must list the taxpayer’s property at a corresponding value. Heindel v. Town of Grafton, 140 Vt. 147, 435 A.2d 695, 1981 Vt. LEXIS 565 (1981).

Appeals pending on effective date.

This subchapter does not affect substantive rights and does not indicate an intent that it shall not be applied to pending appeals; it is procedural in nature and applies to pending appeals. In re Reed, 129 Vt. 102, 272 A.2d 127, 1970 Vt. LEXIS 213 (1970).

Burden of proof.

In an appeal from a reassessment of property by a town, once the town introduces the appraisal of the taxpayer’s property into evidence, the burden is on the taxpayer to overcome the presumption of validity of the appraisal, which can be satisfied by introduction of credible evidence fairly and reasonably tending to show that the property is assessed at more than fair market value, or that the assessment is at a higher percentage of fair market value than comparable properties. Heindel v. Town of Grafton, 140 Vt. 147, 435 A.2d 695, 1981 Vt. LEXIS 565 (1981).

Construction.

The provisions of this subchapter are procedural in nature, apply to pending appeals, and do not affect substantial rights. Town of Barnet v. New England Power Co., 130 Vt. 268, 291 A.2d 396, 1972 Vt. LEXIS 267 (1972).

Construction with other laws.

Legislative acts freezing the grand list valuation for hydroelectric generating facilities did not violate plaintiff’s right to a remedy under the Vermont Constitution by barring judicial review of appraisal value for three years, because the freeze did not affect plaintiff’s access to the judicial process and its right to bring a tax appeal pursuant this section. USGen New Eng., Inc. v. Town of Rockingham, 2003 VT 102, 176 Vt. 104, 838 A.2d 927, 2003 Vt. LEXIS 293 (2003).

This section providing for de novo tax appeal from board of civil authority to either a board of appraisers appointed by the Commissioner of Taxes or to the Superior Court, provides for separate and distinct avenues of appeal and appeal may not be had from the board of appraisers to the Superior Court under general rules providing for appeal to Superior Court by any party entitled thereto by law in a contested case and for review otherwise available by law. In re Appeal of City of Barre, 134 Vt. 519, 365 A.2d 519, 1976 Vt. LEXIS 717 (1976).

The phrase “unless some other court is expressly provided by law” in 3 V.S.A. § 815(a) applies to statutory requirements that specifically limit the courts to which an appeal can be taken and did not apply to property tax appeal under this subchapter. Town of Barnet v. Central Vt. Public Service Corp., 131 Vt. 578, 313 A.2d 392, 1973 Vt. LEXIS 357 (1973).

Evidence.

In administrative tax appraisal appeal, where television station owner refused to address theory of board of appraisers as to how television transmitting facility should be valued, it was not error for board to adopt appraisal of town’s expert, which was based on original cost, adjusted to reflect current reproduction cost, less depreciation. Mt. Mansfield TV, Inc. v. Town of Stowe, 137 Vt. 435, 407 A.2d 172, 1979 Vt. LEXIS 1011 (1979).

In administrative tax appraisal appeal, board of appraisers, in appraising fair market value of television transmitting facility, could accept appraisal of town’s expert witness, which valued property at what it could be sold for on the open market as a functioning transmitting station, after board repeatedly invited taxpayer to submit evidence of property’s fair market value as a functioning station and taxpayer refused, insisting property should be valued with reference to what it could be sold for piecemeal in the electronics market. Mt. Mansfield TV, Inc. v. Town of Stowe, 137 Vt. 435, 407 A.2d 172, 1979 Vt. LEXIS 1011 (1979).

Findings of board.

Where findings of board of appraisers in tax appraisal administrative appeal were not a clear statement of what was decided and how and merely restated the evidence, they could not stand and case would be remanded for the preparation of proper findings. Hoefer v. Town of Brattleboro, 137 Vt. 434, 407 A.2d 183, 1979 Vt. LEXIS 1002 (1979).

Hearing of appeal.

Under provisions of this section, appeals are to be heard in the Superior Court by the presiding judge, sitting alone and without a jury; therefore, participation by assistant judges in deliberation process and signing of orders dismissing appeal was improper. Mowle v. Town of Sherburne, 140 Vt. 155, 436 A.2d 770, 1981 Vt. LEXIS 577 (1981).

Issues.

Although appellee did not appeal denial of its motion to dismiss claim, it could assert error in such denial so long as it did not seek to enlarge its own rights or lessen those of plaintiffs. Punderson v. Town of Chittenden, 136 Vt. 221, 388 A.2d 373, 1978 Vt. LEXIS 722 (1978).

Multiple appeals.

Under this section’s provision that a taxpayer aggrieved by a decision of the board of civil authority may appeal from the decision either to the Director, Division of Property Valuation and Review, or to the Superior Court, while not every minor choice between alternative positions constitutes a “decision,” a separately stated determination regarding distinct property, whether of different location, ownership, or kind, constitutes a “decision,” within the ordinary meaning of that word, and where board of civil authority issued taxpayer two sets of findings and conclusions, one on real property and the other on personal property, there were two appealable decisions and taxpayer could appeal one to the Director and the other to the Superior Court, and policy against multiplicity of litigation did not apply as it is not multiplicity of litigation to press two separate appeals based on two separate appealable decisions. Britton Lumber Co. v. Town of Fairlee, 138 Vt. 206, 413 A.2d 808, 1980 Vt. LEXIS 1132 (1980).

Notice of appeal.

Upon appeal to Superior Court from decision of board of civil authority, notice of appeal is required to be served by a sheriff, constable, or other person authorized by law upon the town clerk, the town agent, and the chairman of the board of listers personally. Mowle v. Town of Sherburne, 140 Vt. 155, 436 A.2d 770, 1981 Vt. LEXIS 577 (1981).

Other means of review.

Extraordinary relief in the Superior Court in the nature of certiorari was not available to town challenging valuation of property for tax purposes by board of appraisers appointed by Commissioner of Taxes where all the issues in town’s petition could have been raised by direct appeal to Supreme Court. In re Appeal of City of Barre, 134 Vt. 519, 365 A.2d 519, 1976 Vt. LEXIS 717 (1976).

A county court de novo hearing need not always precede Supreme Court review of a board of tax appraisers decision. Town of Barnet v. Central Vt. Public Service Corp., 131 Vt. 578, 313 A.2d 392, 1973 Vt. LEXIS 357 (1973).

In State property tax matters, de novo hearing before the county court is clearly an alternative to hearing before the State board of tax appraisers. Town of Barnet v. Central Vt. Public Service Corp., 131 Vt. 578, 313 A.2d 392, 1973 Vt. LEXIS 357 (1973).

Petition for writ of certiorari, formerly used to review tax appraisals due to lack of regular means of review, could not be maintained to review tax appraisal where recently enacted statutory review procedure existed, even though litigation was set in motion by listers’ appraisal made prior to effective date of procedure provided by statutes. Town of Barnet v. New England Power Co., 130 Vt. 268, 291 A.2d 396, 1972 Vt. LEXIS 267 (1972).

Presumptions.

In an appeal from a reassessment of property by a town, a presumption of validity and legality attaches to the actions of the board of listers. Heindel v. Town of Grafton, 140 Vt. 147, 435 A.2d 695, 1981 Vt. LEXIS 565 (1981).

Scope of appeal.

Generally, scope of appeal is not limited by the notice of appeal, especially in the area of tax appeals, where review is de novo, and this section’s requirement that notice of appeal shall set forth briefly the grounds upon which the appeal is based would not be read to limit scope of appeal, so that where notice in tax appeal stated fair market value was the issue on appeal, it was not error to admit evidence of corresponding listed values. City of Barre v. Town of Orange, 138 Vt. 484, 417 A.2d 939, 1980 Vt. LEXIS 1269 (1980).

Question of unequal taxation of property is a matter for the courts, and cannot be raised by a tax appeal. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 129 Vt. 1, 270 A.2d 584, 1970 Vt. LEXIS 194 (1970).

Service of process.

Failure to raise in a timely manner a defense based on insufficiency of service of process in a tax appeal under this section is a waiver of that defense. Mountainview Ass'n v. Town of Wilmington, 147 Vt. 627, 523 A.2d 1239, 1987 Vt. LEXIS 430 (1987).

Where a defendant has full notice of an appeal and no other prejudice to the defendant is shown, a taxpayer who has made a good-faith but defective effort at service of process should be allowed to cure such defect by making service on the proper party. Mountainview Ass'n v. Town of Wilmington, 147 Vt. 627, 523 A.2d 1239, 1987 Vt. LEXIS 430 (1987).

Where plaintiffs, property owners in town, in property tax appeals challenging the valuation established for their property to the Superior Court pursuant to this section, made proper service on town clerk and town agent, but no service was made on chairman of board of listers, argument of town that this was a failure to comply with service requirements was disingenuous in light of town’s stipulation below that the same individual was serving as both town agent and chairman of the board of listers, the individual was personally served within the meaning of subsec. (a) of this section and V.R.C.P. 4(d)(1), governing process, and on the facts the town did not and could not argue it suffered a lack of notice of the taxpayers’ appeal. Hojaboom v. Town of Swanton, 141 Vt. 43, 442 A.2d 1301, 1982 Vt. LEXIS 471 (1982).

Cited.

Cited in Rutland County Club v. City of Rutland, 140 Vt. 142, 436 A.2d 730, 1981 Vt. LEXIS 573 (1981); Rooney Vermont Associates v. Town of Pownal, 140 Vt. 150, 436 A.2d 733, 1981 Vt. LEXIS 574 (1981); Corrette v. Town of St. Johnsbury, 140 Vt. 315, 437 A.2d 1112, 1981 Vt. LEXIS 619 (1981); City of Winooski v. Barnes, 142 Vt. 27, 451 A.2d 1140, 1982 Vt. LEXIS 602 (1982); Town of Cambridge v. Bassett, 142 Vt. 171, 453 A.2d 413, 1982 Vt. LEXIS 620 (1982); Soucy v. Soucy Motors, Inc., 143 Vt. 615, 471 A.2d 224, 1983 Vt. LEXIS 596 (1983); Vermont Division of State Buildings v. Town of Duxbury, 144 Vt. 228, 475 A.2d 235, 1984 Vt. LEXIS 433 (1984); Bailey v. Town of Craftsbury, 144 Vt. 260, 475 A.2d 1390, 1984 Vt. LEXIS 459 (1984); Kruse v. Town of Westford, 145 Vt. 368, 488 A.2d 770, 1985 Vt. LEXIS 304 (1985); Pizzagalli Construction Co. v. Town of Whitingham, 146 Vt. 490, 505 A.2d 678, 1986 Vt. LEXIS 317 (1986); In re Roy, 147 Vt. 403, 519 A.2d 1147, 1986 Vt. LEXIS 441 (1986); Roy v. Town of Barnet, 147 Vt. 551, 522 A.2d 225, 1986 Vt. LEXIS 463 (1986); Adams v. Town of West Haven, 147 Vt. 618, 523 A.2d 1244, 1987 Vt. LEXIS 434 (1987); Villeneuve v. Town of Cambridge, 148 Vt. 15, 527 A.2d 659, 1987 Vt. LEXIS 443 (1987); Littlefield v. Town of Brighton, 151 Vt. 600, 563 A.2d 998, 1989 Vt. LEXIS 115 (1989); In re Milot, 151 Vt. 615, 563 A.2d 1005, 1989 Vt. LEXIS 114 (1989); Alexander v. Town of Barton, 152 Vt. 148, 565 A.2d 1294, 1989 Vt. LEXIS 283 (1989).

§ 4462. Repealed. 1999, No. 49, § 46, eff. June 2, 1999.

History

Former § 4462. Former § 4462, relating to property tax appeals and triplicate copies, was derived from 1969, No. 253 (Adj. Sess.), § 1, and amended by 1971, No. 185 (Adj. Sess.), § 218; 1977, No. 105 , § 14(a).

§ 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.

HISTORY: 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.

History

Amendments

—2019 (Adj. Sess.) Substituted “an” for “town” following “taxpayer,”, inserted “designated by the legislative body of the town,” following “agent”, and deleted “town” following “taxpayer,” twice.

—2017. Substituted “14” for “10” following “on or before” in the first sentence and inserted a comma after “town agent”.

—2003 (Adj. Sess.). Substituted “mailing of the notice of appeal by the clerk under Rule 74(b) of the Vermont Rules of Civil Procedure” for “the entry of the board’s decision”.

—1999. Section amended generally.

—1977. Substituted “director” for “commissioner”.

—1971 (Adj. Sess.). Rephrased and omitted references to court of chancery and chancellor.

Transitional provisions. 2019, No. 84 (Adj. Sess.), § 12 provides: “Any elected town agent in office on the effective date of this act [July 1, 2020] may serve the remainder of his or her term.”

ANNOTATIONS

Objection not necessary.

Scope of a taxpayer’s appeal from an assessment was not limited to the issues identified by the taxpayer in his notice of appeal, and the town did not need to file an objection to the appeal to enable the hearing officer to consider if he had authority to consider the appraised value of the property de novo. Rasmussen v. Town of Fair Haven, 2016 VT 1, 201 Vt. 88, 136 A.3d 569, 2016 Vt. LEXIS 4 (2016).

§ 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.

HISTORY: Added 1969, No. 253 (Adj. Sess.), § 1; amended 1971, No. 185 (Adj. Sess.), § 220, eff. March 29, 1972; 1977, No. 105 , § 14(a).

History

Revision note

—2007. The language “in the book wherein the appeal was recorded under the provisions of section 4462 of this title” was deleted as a result of the repeal of section 4462 by 1999, No. 49 , § 46.

Amendments

—1977. Substituted “director” for “commissioner”.

—1971 (Adj. Sess.). Rephrased and omitted reference to court.

§ 4465. Appointment of property valuation hearing officer; oath; pay.

When an appeal to the Director is not withdrawn, 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 Director shall pay each hearing officer a sum not to exceed $150.00 per diem for each day wherein hearings are held, together with reasonable expenses as the Director 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.

HISTORY: 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.

History

Amendments

—2019 (Adj. Sess.). Substituted “$150.00” for “$120.00.”

—2015 (Adj. Sess.). Section heading: Substituted “valuation hearing” for “tax hearing”.

—2013. Substituted “hearing officer” for “appraiser” throughout the section.

—2005 (Adj. Sess.). Substituted “$120.00 per diem” for “$80.00 per diem” in the fifth sentence.

—1997. Substituted “$80.00” for “$50.00” in the fifth sentence.

—1995 (Adj. Sess.) Substituted “appraiser” for “board” in the section heading, rewrote the first sentence and made minor changes in phraseology throughout.

—1977. Substituted “director” for “commissioner”.

1995 (Adj. Sess.) amendment. 1995, No. 178 (Adj. Sess.), § 316 provides that the amendment to this section by § 293 of that act shall apply to appraisals for property tax years beginning on or after January 1, 1996.

CROSS REFERENCES

Service of subpoenas in civil actions, see V.R.C.P. 45.

ANNOTATIONS

Evidence.

In administrative tax appraisal appeal, board of appraisers, in appraising fair market value of television transmitting facility, could accept appraisal of town’s expert witness, which valued property at what it could be sold for on the open market as a functioning transmitting station, after board repeatedly invited taxpayer to submit evidence of property’s fair market value as a functioning station and taxpayer refused, insisting property should be valued with reference to what it could be sold for piecemeal in the electronics market. Mt. Mansfield TV, Inc. v. Town of Stowe, 137 Vt. 435, 407 A.2d 172, 1979 Vt. LEXIS 1011 (1979).

In administrative tax appraisal appeal, where television station owner refused to address theory of board of appraisers as to how television transmitting facility should be valued, it was not error for board to adopt appraisal of town’s expert, which was based on original cost, adjusted to reflect current reproduction cost, less depreciation. Mt. Mansfield TV, Inc. v. Town of Stowe, 137 Vt. 435, 407 A.2d 172, 1979 Vt. LEXIS 1011 (1979).

Findings.

Where findings of board of appraisers in tax appraisal administrative appeal were not a clear statement of what was decided and how and merely restated the evidence, they could not stand and case would be remanded for the preparation of proper findings. Hoefer v. Town of Brattleboro, 137 Vt. 434, 407 A.2d 183, 1979 Vt. LEXIS 1002 (1979).

Nature of board.

The board of tax appraisers is a quasi-judicial agency acting as a trier of fact. Town of Barnet v. New England Power Co., 130 Vt. 407, 296 A.2d 228, 1972 Vt. LEXIS 291 (1972).

Cited.

Cited in Heindel v. Town of Grafton, 140 Vt. 147, 435 A.2d 695, 1981 Vt. LEXIS 565 (1981); Kachadorian v. Town of Woodstock, 144 Vt. 348, 477 A.2d 965, 1984 Vt. LEXIS 481 (1984); Saufroy v. Town of Danville, 148 Vt. 624, 538 A.2d 168, 1987 Vt. LEXIS 574 (1987); Kachadorian v. Town of Woodstock, 149 Vt. 446, 545 A.2d 509, 1988 Vt. LEXIS 57 (1988); Littlefield v. Town of Brighton, 151 Vt. 600, 563 A.2d 998, 1989 Vt. LEXIS 115 (1989); Alexander v. Town of Barton, 152 Vt. 148, 565 A.2d 1294, 1989 Vt. LEXIS 283 (1989).

§ 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.

HISTORY: Added 1969, No. 253 (Adj. Sess.), § 1; amended 1995, No. 178 (Adj. Sess.), § 294; 2013, No. 73 , § 33.

History

Revision note—

Substituted “before appraiser” for “to director” in the section heading in conformity with 1995 (Adj. Sess.) amendment.

Amendments

—2013. Substituted “3 V.S.A. chapter 25” for “chapter 25 of Title 3” in first sentence; substituted “hearing officer” for “appraiser” throughout section.

—1995 (Adj. Sess.) Substituted “an appraiser” for “the board” in the first sentence and substituted “an appraiser” for “the appraisers” in the second sentence.

1995 (Adj. Sess.) amendment. 1995, No. 178 (Adj. Sess.), § 316, provided that the amendment to this section by § 294 of the act shall apply to appraisals for property tax years beginning on or after January 1, 1996.

ANNOTATIONS

Cited.

Cited in City of Winooski v. Barnes, 142 Vt. 27, 451 A.2d 1140, 1982 Vt. LEXIS 602 (1982); Town of Cambridge v. Bassett, 142 Vt. 171, 453 A.2d 413, 1982 Vt. LEXIS 620 (1982).

§ 4467. Determination of appeal.

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. 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 said 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. 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 his or her option to request an inspection under this section.

HISTORY: 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.

History

Revision note—

Reference to “court of chancery” was changed to “superior court” pursuant to 1973, No. 193 (Adj. Sess.), § 3.

Amendments

—2015 (Adj. Sess.). Section amended generally.

—2013. Substituted “hearing officer” for “appraiser” throughout section.

—2003 (Adj. Sess.). Added “and a housesite” preceding “value” in the first sentence.

—1999. Deleted “the” following “upon” and inserted “and to determine a homestead value if a homestead has been declared with respect to the property for the year in which the appeal is taken” at the end of the first sentence.

—1995 (Adj. Sess.) Section amended generally.

—1983 (Adj. Sess.). Inserted “state” preceding “board” in the first and second sentences and added the fifth sentence.

—1973. Section amended generally.

Effective date of amendments—

1983 (Adj. Sess.). 1983, No. 215 (Adj. Sess.), § 4, eff. May 10, 1984, provided: “This act shall take effect from passage and affect tax years beginning on January 1, 1984 and thereafter.”

1995 (Adj. Sess.) amendment. 1995, No. 178 (Adj. Sess.), § 316, provided that the amendment to this section by § 295 of that act shall apply to appraisals for property tax years beginning on or after January 1, 1996.

Municipal quasi-judicial proceedings; temporary suspension of in-person hearing and inspection requirements. 2019, No. 106 (Adj. Sess.), § 1(b)(2) and (b)(3) provide: “(2) Notwithstanding 32 V.S.A. § 4467 , during a declared state of emergency under 20 V.S.A. chapter 1 due to COVID-19, 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 Board members or hearing officer conducting the inspection.”

ANNOTATIONS

Burden of proof.

To prevail on appeal of property valuation taxpayer must show an arbitrary or unlawful valuation. Sondergeld v. Town of Hubbardton, 150 Vt. 565, 556 A.2d 64, 1988 Vt. LEXIS 231 (1988).

On appeal of property valuation, town has initial burden to produce evidence of fair market value; once town has met its burden, taxpayer retains burden of persuasion as to contested issues. Sondergeld v. Town of Hubbardton, 150 Vt. 565, 556 A.2d 64, 1988 Vt. LEXIS 231 (1988).

If the taxpayer introduces credible evidence fairly and reasonably tending to show that taxpayer’s property was appraised at more than its fair market value, the presumption that the appraisal is valid and legal disappears. Adams v. Town of West Haven, 147 Vt. 618, 523 A.2d 1244, 1987 Vt. LEXIS 434 (1987).

Even after the presumption of validity of a property appraisal disappears, the burden of persuasion on all contested issuers on appeal of the appraisal remains with the taxpayer; it does not shift to the town. Kruse v. Town of Westford, 145 Vt. 368, 488 A.2d 770, 1985 Vt. LEXIS 304 (1985).

A taxpayer satisfies burden of going forward with evidence to overcome the presumption that appraisal of taxpayer’s property is valid when taxpayer introduces credible evidence fairly and reasonably tending to show that taxpayer’s property was appraised at more than its fair market value. Kruse v. Town of Westford, 145 Vt. 368, 488 A.2d 770, 1985 Vt. LEXIS 304 (1985).

Once the presumption of validity of a property appraisal is overcome by a taxpayer, the town must produce evidence to justify its appraisal and can prevail by either demonstrating that the method of appraisal substantially complied with relevant constitutional and statutory requirements or by substantiating the appraisal with independent evidence relevant to the fair market value of the subject property and the listed value of comparable properties within the town. Kruse v. Town of Westford, 145 Vt. 368, 488 A.2d 770, 1985 Vt. LEXIS 304 (1985).

Taxpayer who appealed appraisal of real estate to the State board of appraisers but merely submitted a letter stating the basis of his grievance, rather than presenting factual evidence, failed to satisfy burden of presenting sufficient evidence to overcome the presumption of the appraisal’s validity. Manganelli v. Town of Proctor, 144 Vt. 451, 479 A.2d 155, 1984 Vt. LEXIS 501 (1984).

The duty of overcoming presumption of validity of appraisal of real estate lies with the aggrieved taxpayer; if the taxpayer presents sufficient evidence raising a question of fact, the presumption is extinguished. Manganelli v. Town of Proctor, 144 Vt. 451, 479 A.2d 155, 1984 Vt. LEXIS 501 (1984).

The burden of producing evidence to overcome the presumption of validity of appraisal of real estate is satisfied by the introduction of credible evidence fairly and reasonably tending to show that the property was assessed at more than the fair market value or that the listed value exceeded the percentage of listed value actually applied to the general mass of property in the community. Manganelli v. Town of Proctor, 144 Vt. 451, 479 A.2d 155, 1984 Vt. LEXIS 501 (1984).

Taxpayer’s burden of overcoming presumption of validity and legality of actions of listers may be satisfied by credible evidence fairly and reasonably tending to show that the property was assessed at more than fair market value or that the listed value exceeded the percentage of listed value actually applied to the general mass of property in the community; or the taxpayer may attack the town’s method of appraisal directly by evidence demonstrating that the method used was invalid. Beaudry v. Town of Chester, 143 Vt. 182, 463 A.2d 220, 1983 Vt. LEXIS 469 (1983).

Once a taxpayer presents evidence overcoming presumption of validity and legality of actions of listers, the town, to prevail, must produce evidence to justify the appraisal and may either show that the method of appraisal substantially complied with the relevant constitutional and statutory requirements, or substantiate the appraisal with independent evidence relative to the fair market value of the property and the listed value of comparable properties in the town. Beaudry v. Town of Chester, 143 Vt. 182, 463 A.2d 220, 1983 Vt. LEXIS 469 (1983).

In a de novo appeal to the Superior Court under this section, a presumption of validity and legality attaches to the actions of the listers, and upon evidence of the appraisal being introduced, that presumption remains until countervailing evidence is introduced fairly and reasonably showing that the property was appraised in excess of its fair market value. Jeffer v. Town of Chester, 142 Vt. 23, 451 A.2d 823, 1982 Vt. LEXIS 578 (1982).

Upon appeal of property valuation, once presumption of validity of the appraisal disappears, the burden of persuasion remains on the taxpayer as to all contested issues. Rutland County Club v. City of Rutland, 140 Vt. 142, 436 A.2d 730, 1981 Vt. LEXIS 573 (1981).

On appeal of property valuation, once relevant evidence challenging the assessment has been introduced to overcome the presumption of the validity of the appraisal, in order to prevail, the town must produce evidence to justify the appraisal, which can be done either by demonstrating that the method of appraisal substantially complied with the relevant constitutional and statutory requirements or by substantiating the appraisal with independent evidence relative to the fair market value of the subject property and the listed value of comparable properties within the municipality. Rutland County Club v. City of Rutland, 140 Vt. 142, 436 A.2d 730, 1981 Vt. LEXIS 573 (1981).

In tax appeal proceeding, landowner attacking assessment as not being comparable to similar properties at all times had burden of persuasion on the issue. Schwartz v. Town of Norwich, 137 Vt. 130, 400 A.2d 991, 1979 Vt. LEXIS 955 (1979).

In a de novo appeal to Superior Court of appraisal of land for tax purposes, the burden of persuasion remains on the taxpayer as to all contested issues. Leroux v. Town of Wheelock, 136 Vt. 396, 392 A.2d 387, 1978 Vt. LEXIS 639 (1978).

Once a taxpayer presents evidence overcoming presumption of validity and legality of actions of listers, the town, to prevail, must produce evidence to justify the appraisal and may either show that the method of appraisal substantially complied with the relevant constitutional and statutory requirements or substantiate the appraisal with independent evidence relative to the fair market value of the property and the listed value of comparable properties in the town. Leroux v. Town of Wheelock, 136 Vt. 396, 392 A.2d 387, 1978 Vt. LEXIS 639 (1978).

Taxpayer’s burden of overcoming presumption of validity and legality of actions of listers may be satisfied by credible evidence fairly and reasonably tending to show that the property was assessed at more than fair market value or that the listed value exceeded the percentage of listed value actually applied to the general mass of property in the community; or the taxpayer may attack the town’s method of appraisal directly by evidence demonstrating that the method was invalid. Leroux v. Town of Wheelock, 136 Vt. 396, 392 A.2d 387, 1978 Vt. LEXIS 639 (1978).

In de novo appeal of appraisal of land to Superior Court, where taxpayers showed that land appraisals averaged 37 1/2 percent under sales price of recently sold properties and appraisal of homes averaged 35 percent under sales price of recently sold homes and that to be equitable in view of those percentages their property, appraised at $106,400.00 in 1973 and $110,400.00 in 1975, should be valued at $79,500.00 for both years, taxpayers placed the burden of producing evidence to justify the appraisal on the town. Leroux v. Town of Wheelock, 136 Vt. 396, 392 A.2d 387, 1978 Vt. LEXIS 639 (1978).

In de novo appeal to Superior Court questioning validity of town’s method of appraising property value, burden of persuasion as to all contested issues remains on taxpayer. Welch v. Town of Ludlow, 136 Vt. 83, 385 A.2d 1105, 1978 Vt. LEXIS 692 (1978).

Through taxpayer’s own testimony and that of real estate appraiser using willing buyer, willing seller definition of fair market value, taxpayer clearly satisfied burden of producing credible evidence fairly and reasonably tending to show that property was assessed at more than fair market value. Welch v. Town of Ludlow, 136 Vt. 83, 385 A.2d 1105, 1978 Vt. LEXIS 692 (1978).

In de novo appeal to Superior Court questioning validity of town’s method of appraising property value, once taxpayer introduces credible evidence fairly and reasonably tending to show that property was assessed at more than fair market value or that listed value exceeded percentage of listed value actually applied to general mass of property in community, to prevail, town has burden of producing evidence to justify appraisal and may meet its burden by introducing evidence demonstrating substantial compliance with constitutional and statutory requirements relative to fair market value and uniformity, or by introducing independent evidence of fair market value of subject property and listed value of comparable properties within town sufficient to justify appraisal. Welch v. Town of Ludlow, 136 Vt. 83, 385 A.2d 1105, 1978 Vt. LEXIS 692 (1978).

Allocation of burdens of proof set forth in Schweizer v. Town of Pomfret (1976) 134 Vt. 436, 365 A.2d 134, and New England Power Co. v. Town of Barnet (1976) 134 Vt. 498, 367 A.2d 1363, are equally applicable in proceedings before State tax appeals board. Town of Walden v. Bucknam, 135 Vt. 326, 376 A.2d 761, 1977 Vt. LEXIS 618 (1977).

Where taxpayer clearly met its burden of showing patent inequality in the ratio of fair market to listed value applied to its property as compared to that applied to other taxable property in the town, tax appeal board’s action in lowering by 40 percent the fair market value of taxpayer’s property would be upheld, in absence of any showing that the board had abused its authority under this section and although the record gave no indication that any “common level” or ratio was applied to taxpayer’s property, or that such ratio even existed in the town. Town of Barnet v. Palazzi Corp., 135 Vt. 298, 376 A.2d 24, 1977 Vt. LEXIS 612 (1977).

When a town’s appraisal of property for tax purposes is challenged there is a presumption that the appraisal is valid and the property owner has the burden of producing evidence to overcome the presumption, a burden satisfied by credible evidence fairly and reasonably tending to show assessment at more than fair market value or a listed value exceeding the percentage of listed value applied to the general mass of property in the community, at which point the town has the burden of justifying the appraisal. New England Power Co. v. Town of Barnet, 134 Vt. 498, 367 A.2d 1363, 1976 Vt. LEXIS 713 (1976).

In a proceeding challenging the appraisal of property for tax purposes, the burden of persuasion as to the contested issues remains at all time with the taxpayer. New England Power Co. v. Town of Barnet, 134 Vt. 498, 367 A.2d 1363, 1976 Vt. LEXIS 713 (1976).

Certiorari.

Petition stating that parcel of property was listed in grand list at a higher acreage than it actually contained and raising several other questions relating to matters of fact was insufficient to authorize the grant of a writ of certiorari. Villeneuve v. Commissioner of Taxes, 128 Vt. 356, 264 A.2d 774, 1970 Vt. LEXIS 233 (1970).

It was Supreme Court’s duty, upon being presented with a petition for writ of certiorari by taxpayer attacking personal property appraisal and board of appraisers’ upholding of it upon administrative review, to examine the evidence and determine whether there was the competent proof of facts necessary to authorize the adjudication, and whether in making it, any rule of law affecting the taxpayer’s rights was broken. In re Heath, 128 Vt. 519, 266 A.2d 812, 1970 Vt. LEXIS 265 (1970).

Commissioner of Taxes was a necessary party to taxpayer’s petition for certiorari where, and only because, the record was in the Commissioner’s possession. In re Heath, 128 Vt. 519, 266 A.2d 812, 1970 Vt. LEXIS 265 (1970).

Comparable properties.

Approach of taxpayers’ expert, and his exclusion of certain sales, was inconsistent with cases holding that all property within the same class was considered “comparable” for purposes of the statute governing appeals, not just property that was appreciating at the same rate. The trial court did not err in rejecting the taxpayers’ evidence and looking instead to a town-wide ratio. Dewey v. Town of Waitsfield, 2008 VT 41, 184 Vt. 92, 956 A.2d 508, 2008 Vt. LEXIS 42 (2008).

In the assessment of real property, evidence of comparable sales are admissible although comparable properties are rarely, if ever, identical properties. Absent abuse of discretion, the degree of comparability goes to the weight of the evidence and is a matter for the trier of fact. Scott Construction, Inc. v. City of Newport Board of Civil Authority, 165 Vt. 232, 683 A.2d 382, 1996 Vt. LEXIS 70 (1996).

If comparable properties exist within town, comparison is made between current market value and listed value to determine equalization ratio for property tax purposes. Vermont Electric Power Co. v. Town of Cavendish, 158 Vt. 369, 611 A.2d 389, 1992 Vt. LEXIS 56 (1992).

For equalization ratio purposes, comparable properties within town means properties of same general class as subject property, even if those properties would not meet initial comparability criteria on basis of factors like building size, age, description, condition, use, income and expenses, and surroundings. Vermont Electric Power Co. v. Town of Cavendish, 158 Vt. 369, 611 A.2d 389, 1992 Vt. LEXIS 56 (1992).

For purposes of establishing equalization ratio under this section, “comparable properties within the town” means properties of the same general class as the subject properties, even if the properties within the set selected for equalization analysis would not meet the initial valuation comparability criteria on basis of factors like building size, age, description, condition, use, income and expenses, and surroundings. Philbin v. Town of St. George, 156 Vt. 640, 588 A.2d 1060, 1991 Vt. LEXIS 38 (1991) (mem.).

Even though decision of board of appraisers omitted direct comparisons between subject and comparable properties, board met its obligation to consider fair market value of residential property, where board first identified comparable properties and then proceeded to recite in detail categories in subject property it considered misgraded in relation to same categories in comparables. Gionet v. Town of Goshen, 152 Vt. 451, 566 A.2d 1349, 1989 Vt. LEXIS 187 (1989).

Where on appeal of property appraisal to the State board of appraisers town’s expert testified that the neighboring property offered by taxpayer as comparable, to taxpayer’s was smaller and, unlike taxpayer’s, was without a garage or fireplace, the board’s finding of the fair market value of taxpayer’s property, which was higher than the appraisal of the property offered as comparable, was supported by credible evidence and would not be disturbed. Kruse v. Town of Westford, 145 Vt. 368, 488 A.2d 770, 1985 Vt. LEXIS 304 (1985).

Where unique property is the subject of litigation under this section, all property within the taxing municipality is comparable for purposes of determining the proper corresponding listed value. Kachadorian v. Town of Woodstock, 144 Vt. 348, 477 A.2d 965, 1984 Vt. LEXIS 481 (1984).

In taxpayer’s proceeding for lower tax appraisal of land, it was error to refuse to allow taxpayer to testify to appraisal placed on taxpayer’s adjoining property in the next town as part of the basis for opinion of the fair market value of the property at issue. Ames v. Town of Danby, 136 Vt. 78, 385 A.2d 1075, 1978 Vt. LEXIS 691 (1978).

Where property the appraisal of which is appealed is unique, and the court is required to find whether its listed value corresponds to the listed value of comparable properties and to set it in the list at a corresponding value if it does not, all property within the town shall be considered comparable and the court may consider a sales-ratio study analyzing the average of ratio between sales price and listed value of land sold in arms-length transactions within the town. New England Power Co. v. Town of Barnet, 134 Vt. 498, 367 A.2d 1363, 1976 Vt. LEXIS 713 (1976).

The statute relating to tax appraisal mandates the use of comparable property values in the determination of an appeal from the board of civil authority’s appraisal when one of the prime issues is that the listed property of comparable properties does not correspond to the listed value of plaintiff’s land. Bookstaver v. Town of Westminster, 131 Vt. 133, 300 A.2d 891, 1973 Vt. LEXIS 280 (1973).

On appeal from appraisal of property for tax purposes the court must consider the value of comparable properties within the same town and in such case it is not enough for the court to simply state that such were considered, rather findings are required on that critical issue. Bookstaver v. Town of Westminster, 131 Vt. 133, 300 A.2d 891, 1973 Vt. LEXIS 280 (1973).

Constitutional law.

Legislature clearly intended that State board of appraisers would adjudicate constitutional questions in determining the validity of town appraisals; this section specifically requires the board to take into account the applicable provisions of the U.S. and Vermont Constitutions. Alexander v. Town of Barton, 152 Vt. 148, 565 A.2d 1294, 1989 Vt. LEXIS 283 (1989).

Construction with other laws.

The Legislature did not intend that appeals under § 3708 of this title, governing payments in lieu of taxes for lands held by the Agency of Natural Resources, be governed by the same standard and procedures that it established for this section. Town of Victory v. State, 2004 VT 110, 177 Vt. 383, 865 A.2d 373, 2004 Vt. LEXIS 312 (2004).

Valuation of land of a municipal corporation situated outside its territorial limits for tax purposes is governed by this section, and not § 3659 of this title, where property similar to the property at issue cannot be found within the taxing municipality. City of Barre v. Town of Orange, 152 Vt. 442, 566 A.2d 951, 1989 Vt. LEXIS 180 (1989).

Where § 3659 of this title provided that municipal property outside the limits of the municipality shall be taxed by the municipality in which the property lies, the property to be valued at the same value as similar property, and property similar to the property at issue could not be found, that section did not apply and this section, relating to tax appeals generally and providing that, if it is found on appeal that the listed value does not correspond to the listed value of comparable properties within the town, the property shall be set in the listing at a corresponding value, was to be applied. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 134 Vt. 325, 360 A.2d 882, 1976 Vt. LEXIS 666 (1976).

Court’s duty and power.

Upon appeal by taxpayers from decisions of a town board of civil authority, which applied separate equalization ratios to separate classes of real property, the State board of appraisers had the jurisdiction to reach a decision, despite this section which allows the board to equalize property values only to “comparable properties within the town.” Not every dispute over what is a comparable property must be resolved initially as a dispute over jurisdiction. Taxpayers are entitled to argue for a view of comparability as favorable as they can reasonably achieve without having their appeal summarily dismissed because they crossed over an unseen jurisdictional line. Knollwood Building Condominiums v. Town of Rutland, 166 Vt. 529, 699 A.2d 31, 1997 Vt. LEXIS 99 (1997).

This section mandates trial court to try dispute anew, as though it had never been heard before, and trial court is required to determine correct valuation in light of requirements of law and provisions of State and federal constitutions. In re Milot, 151 Vt. 615, 563 A.2d 1005, 1989 Vt. LEXIS 114 (1989).

In de novo appeal of property evaluation for tax purposes, court’s function was to determine whether the listed value of the property corresponded with the listed value of comparable properties, and if not it was for the court to determine the appropriate relief by setting the property in the list at a corresponding value. Rutland Country Club, Inc. v. City of Rutland, 137 Vt. 590, 409 A.2d 591, 1979 Vt. LEXIS 1089 (1979).

Where town’s reappraisal of property was unacceptable as it used a method not in compliance with statute, lower court, in which taxpayer sought a lower appraisal, would not be ordered to set property in grand list at valuation in effect during next year prior to reappraisal; such an order would be proper had town introduced no other evidence of fair market value and uniformity of comparable properties’ assessments; but where town introduced evidence on such issues, and taxpayer also introduced evidence on such issues, lower court should set fair market value and proper listing of property in a new trial. Ames v. Town of Danby, 136 Vt. 78, 385 A.2d 1075, 1978 Vt. LEXIS 691 (1978).

Determination of value generally.

Where the State appraiser was presented with testimony from an expert who examined a total of 80 properties in the town and the disparity between the listed values of those properties as compared to taxpayers’ properties led the appraiser to conclude that there were a large number of properties in the town comparable to the subject property that were assessed substantially below fair market value, those differences supported the State appraiser’s conclusion that, in fact, the town did not treat all residential properties the same when it assigned values for listing purposes. Allen v. Town of W. Windsor, 2004 VT 51, 177 Vt. 1, 852 A.2d 627, 2004 Vt. LEXIS 162 (2004).

Partition of taxpayers’ property (former dairy farm consisting of about 148 acres and two residences) for appraisal purposes did not violate this section even though it refers to “the property” and not to parts of a property, as there is nothing inconsistent in a statutory reference to “the property” and a valuation analysis that considers parts of the whole. Scott Construction, Inc. v. City of Newport Board of Civil Authority, 165 Vt. 232, 683 A.2d 382, 1996 Vt. LEXIS 70 (1996).

Determinations by the board of appraisers on appeal involve a two-step process; the board must first determine the fair market value of the property in question and then “equalize” the property to insure that it is listed comparably to corresponding properties in the town. Gionet v. Town of Goshen, 152 Vt. 451, 566 A.2d 1349, 1989 Vt. LEXIS 187 (1989).

When a tax assessment is appealed to the State board of appraisers, the board must establish the fair market value of the subject property and equalize that value to ensure comparable listing with other corresponding properties. Kachadorian v. Town of Woodstock, 149 Vt. 446, 545 A.2d 509, 1988 Vt. LEXIS 57 (1988).

In proceeding to determine valuation of property for tax purposes, court could not list taxpayers’ property higher than fair market value, even if comparable properties were listed above fair market value; so that where court determined the fair market value of the property and ordered the property listed at that value, town could not complain that the court failed to make findings of the values of comparable properties. Brown v. Town of Windsor, 139 Vt. 129, 422 A.2d 1268, 1980 Vt. LEXIS 1485 (1980).

In administrative tax appraisal appeal, where television station owner refused to address theory of board of appraisers as to how television transmitting facility should be valued, it was not error for board to adopt appraisal of town’s expert which was based on original cost, adjusted to reflect current reproduction cost, less depreciation. Mt. Mansfield TV, Inc. v. Town of Stowe, 137 Vt. 435, 407 A.2d 172, 1979 Vt. LEXIS 1011 (1979).

Where board of tax appeals reduced listed value of petitioners’ property established by local board of civil authority, but review of board’s written report of findings indicated that while findings stated that comparison of petitioners’ property to other similar properties in the town was made, there was no finding that properties mentioned in the report were comparable to the petitioners’ property, conclusion rendered was not supported by board’s findings of fact since to merely state that inequities existed was not a proper or sufficient method for board to discharge its duties under this section. Town of Walden v. Bucknam, 135 Vt. 326, 376 A.2d 761, 1977 Vt. LEXIS 618 (1977).

Provision in this section that board of tax appeal consider “comparable properties” in appraising property did not require that board’s review of appraised value of personal property be restricted exclusively to comparison of other taxable personal property in the jurisdiction, and board correctly concluded that all property, real and personal, must be subjected to a uniform ratio of fair market to listed value. Town of Barnet v. Palazzi Corp., 135 Vt. 298, 376 A.2d 24, 1977 Vt. LEXIS 612 (1977).

Where this section requiring State board of tax appeals to make specific finding concerning consideration of the fair market value of comparable properties, when on appeal of tax appraisal from board of civil authority one of the principal issues is that the listed value of comparable properties did not correspond to the listed value of plaintiff’s property, was not complied with, and board of tax appeals merely stated that it had “checked” comparable properties, there was reversible error. Schweizer v. Town of Pomfret, 134 Vt. 436, 365 A.2d 134, 1976 Vt. LEXIS 696 (1976).

In property appraisals by the board of tax appraisers, the fair market valuation must be determined in accordance with statutory requirements and correspond to the listed values of comparable properties within the town. Town of Barnet v. Central Vt. Public Service Corp., 131 Vt. 578, 313 A.2d 392, 1973 Vt. LEXIS 357 (1973).

Equalization.

When the parties agreed that the fair market value of the taxpayers’ property was $1,000,000.00, the only question before the appraiser was calculation of an appropriate equalization ratio (ER). The town presented credible evidence to support its proposed ER, and it was not required to provide the taxpayers with an adequate explanation as to why the resulting listed value differed from the listed value found below; in any event, regardless of the position taken by the town, the appraiser was not bound by the findings below, and it was ultimately for the appraiser to weigh the evidence and determine the correct valuation of the property. Shaffer v. Town of Waitsfield, 2008 VT 44, 183 Vt. 428, 956 A.2d 520, 2008 Vt. LEXIS 43 (2008).

Appraiser appropriately looked to town-wide sales after concluding that taxpayers’ evidence of comparable sales was insufficient to calculate an equalization ratio. Shaffer v. Town of Waitsfield, 2008 VT 44, 183 Vt. 428, 956 A.2d 520, 2008 Vt. LEXIS 43 (2008).

Appraiser’s calculation of an equalization ratio (ER) was erroneous when not only did the appraiser fail to explain exactly how he arrived at his result, but his ultimate conclusion was contradicted by his own findings. There was no evidence that any of the 2005 sales identified by the taxpayers were valid sale transactions for purposes of calculating an ER, and the appraiser’s crude averaging of these unvalidated sales with a town-wide common level of appraisal was equally arbitrary and erroneous. Shaffer v. Town of Waitsfield, 2008 VT 44, 183 Vt. 428, 956 A.2d 520, 2008 Vt. LEXIS 43 (2008).

Whole point of calculating and applying an equalization ratio (ER) is to ensure proportionality among a town’s taxpayers. Having calculated and applied an ER, the appraiser does not need to then make additional findings that the listed value is in fact proportionate to comparable properties, and there is similarly no requirement that the appraiser make findings regarding the uniformity of each individual component of a taxpayer’s property. Shaffer v. Town of Waitsfield, 2008 VT 44, 183 Vt. 428, 956 A.2d 520, 2008 Vt. LEXIS 43 (2008).

Taxpayers’ evidence of the listed value of comparable properties was meaningless absent evidence of the fair market value of these properties. Listed value alone, in the absence of fair market value, is useless in arriving at a ratio for equalization purposes; simply adducing evidence regarding the listed value of a comparable property, without ascertaining and applying an equalization ratio to ensure equitable taxation among similar properties, does not prove correct valuation. Shaffer v. Town of Waitsfield, 2008 VT 44, 183 Vt. 428, 956 A.2d 520, 2008 Vt. LEXIS 43 (2008).

Because the court could not discern from the record precisely how the State appraiser implemented a time adjustment or why its application to all classes of property rendered an equalization ratio more accurate, it remanded the case for additional findings. Dewey v. Town of Waitsfield, 2008 VT 41, 184 Vt. 92, 956 A.2d 508, 2008 Vt. LEXIS 42 (2008).

Because there was evidence presented to the Superior Court that residential property in a town was experiencing a rapid rate of appreciation prior to April 1, 2002, it appeared that the most accurate equalization ratio (ER) would be derived from all sales, adjusted for time if appropriate, occurring in the year prior to—or the six-month period before and after—the April 1, 2002 appraisal date. The court therefore reversed and remanded for the application of such an ER, subject to any arguments that might be raised as to why such an ER was inappropriate on the facts of the case. Dewey v. Town of Waitsfield, 2008 VT 41, 184 Vt. 92, 956 A.2d 508, 2008 Vt. LEXIS 42 (2008).

When the trial court found taxpayers’ expert to be inconsistent in his calculation and application of proper equalization ratios, it acted well within its discretion in looking to all property sales within the town to ensure that the taxpayers were not paying a disproportionate share of the town’s tax burden. Dewey v. Town of Waitsfield, 2008 VT 41, 184 Vt. 92, 956 A.2d 508, 2008 Vt. LEXIS 42 (2008).

Where evidence is presented showing a steep rate of appreciation, the most accurate equalization ratio is determined by looking at sales closest in time to the appraisal date—whether one year prior to the appraisal date or six months before and after the appraisal date—unless the trier of fact is persuaded by the evidence that such an approach is unfair, flawed, or otherwise inappropriate. Dewey v. Town of Waitsfield, 2008 VT 41, 184 Vt. 92, 956 A.2d 508, 2008 Vt. LEXIS 42 (2008).

State appraiser had wide discretion in calculating an appropriate equalization ratio and was not required to adopt a town’s approach. Nor was the appraiser obligated to explain in detail why he was not persuaded by the town’s position. Dewey v. Town of Waitsfield, 2008 VT 41, 184 Vt. 92, 956 A.2d 508, 2008 Vt. LEXIS 42 (2008).

There was no error in the State appraiser’s conclusion that the most relevant data in a case was derived from a study of sales within one year of the appraisal date. As reflected in his decision, the appraiser was persuaded by taxpayers’ expert that home values were rapidly rising in the town, and thus, that recent data provided a more reliable and accurate equalization ratio. Dewey v. Town of Waitsfield, 2008 VT 41, 184 Vt. 92, 956 A.2d 508, 2008 Vt. LEXIS 42 (2008).

State board of appraisers properly applied town’s average equalization ratio (AER) to determination of listed value of plaintiff utility company’s property, since there was only one other comparable property in town and AER was sole and best alternative evidence. Vermont Electric Power Co. v. Town of Cavendish, 158 Vt. 369, 611 A.2d 389, 1992 Vt. LEXIS 56 (1992).

For purposes of establishing equalization ratio under this section, “comparable” properties include all properties within the class of property to which the subject property belongs. Philbin v. Town of St. George, 156 Vt. 640, 588 A.2d 1060, 1991 Vt. LEXIS 38 (1991) (mem.).

Where a fixed value like net book value is the basis for appraisal of property, equalization ratios applicable to market value properties under this section are immaterial. Grand Union Co. v. City of Winooski, 152 Vt. 193, 566 A.2d 398, 1988 Vt. LEXIS 246 (1988).

State board of appraisers is required to look at both fair market value and “listed” value of comparable properties so that the valuation set by the board can be “equalized”—that is, reduced from fair market value to listed value by the percentage actually used for comparable properties in the town. Alexander v. Town of Barton, 152 Vt. 148, 565 A.2d 1294, 1989 Vt. LEXIS 283 (1989).

Where defects in computer program resulted in undervaluation of some properties, and sufficient evidence on fair market value of comparable properties was not presented, city-wide equalization ratio was to be applied as if property were “unique.” In re Milot, 151 Vt. 615, 563 A.2d 1005, 1989 Vt. LEXIS 114 (1989).

Where a tax assessment is appealed to the State board of appraisers, if comparable properties exist within the town, a comparison must be made between their current market value and their listed value; this comparison will yield the equalization ratio that must be applied to the fair market value of the subject property to determine its listed value. Kachadorian v. Town of Woodstock, 149 Vt. 446, 545 A.2d 509, 1988 Vt. LEXIS 57 (1988).

On appeal of property valuation to board of appraisers, the fair market value of the property must first be determined and then “equalized” to insure that the property is listed comparably to corresponding properties in town. Kachadorian v. Town of Woodstock, 144 Vt. 348, 477 A.2d 965, 1984 Vt. LEXIS 481 (1984).

On appeal of property valuation to board of appraiser, when comparable properties exist within the town, their current market value must be compared with their current listed value to arrive at an equalization rate, and this rate must then be applied to the subject property’s fair market value to produce the proper listed value. Kachadorian v. Town of Woodstock, 144 Vt. 348, 477 A.2d 965, 1984 Vt. LEXIS 481 (1984).

Estoppel.

There was no merit to taxpayers’ judicial estoppel argument when the prior litigation cited by the taxpayers involved entirely different tax years and, therefore, entirely different assessments; as a result, the town was not precluded from utilizing a different appraisal report in the instant litigation than it relied upon in the previous litigation. Moreover, the taxpayers had failed to demonstrate how their reliance on the actions taken by the town during the prior proceedings had prejudiced them in any way. Boivin v. Town of Addison, 2010 VT 67, 188 Vt. 571, 5 A.3d 897, 2010 Vt. LEXIS 65 (2010) (mem.).

Evidence.

In establishing the listed values of property that was part of a dairy farm, the trial court did not err in crediting the methods and conclusions of the town appraiser. The mere fact that the appraiser was not himself a dairy farmer was not enough to show an abuse of discretion in crediting his testimony and report; as for the trial court’s failure to credit the taxpayers’ “regression analysis,” the trial court properly found the town appraiser’s testimony more compelling than the taxpayers’ testimony with regard to the appropriate appraisal method. Boivin v. Town of Addison, 2010 VT 67, 188 Vt. 571, 5 A.3d 897, 2010 Vt. LEXIS 65 (2010) (mem.).

Towns are statutorily required to submit fair market values to the Division of Property Valuation and Review (PVR), which then uses these values to arrive at a “common level of appraisal” (CLA) ratio. There was no indication that a town did anything but what it was statutorily required to do—that is, submit its grand list values to the PVR; therefore, it was entirely reasonable for the town and the trial court to rely on the CLA derived from statewide equalization studies. Boivin v. Town of Addison, 2010 VT 67, 188 Vt. 571, 5 A.3d 897, 2010 Vt. LEXIS 65 (2010) (mem.).

Taxpayers’ argument regarding the admission of a town appraiser’s updated study failed. The report differed from a pretrial report only in the fact that the pretrial report was based on an estimate of the town’s equalization rate, while the report relied on at trial utilized the finalized equalization study; furthermore, the taxpayers raised no objection to any part of the town appraiser’s testimony at trial. Boivin v. Town of Addison, 2010 VT 67, 188 Vt. 571, 5 A.3d 897, 2010 Vt. LEXIS 65 (2010) (mem.).

Proceeding before an appraiser was a de novo hearing, which required the appraiser to try the dispute anew, as though it had never been heard before. This means that a town was not limited to proffering—and the appraiser was not limited to considering—only such evidence as was presented below, and that the appeal presented the taxpayers with the risk of increase as well as the chance of decrease. Shaffer v. Town of Waitsfield, 2008 VT 44, 183 Vt. 428, 956 A.2d 520, 2008 Vt. LEXIS 43 (2008).

Although the State board of appraisers is normally limited to comparing to properties in the same class as that of the taxpayer’s property, where the board concludes that it lacks evidence of a statistically representative sample, it may use evidence of other classes. Therefore, the board acted well within its discretion in rejecting the equalization proposal of a town, which used different equalization ratios for different classes of real property, and using instead an average ratio for all categories of real property derived from State valuation data, as the ratios for separate classes of property were based on small sample sizes. Knollwood Building Condominiums v. Town of Rutland, 166 Vt. 529, 699 A.2d 31, 1997 Vt. LEXIS 99 (1997).

If State board of appraiser concludes that it lacks statistically representative sample of comparable property, it may use other evidence to determine appropriate equalization ratio; however, if property is unique within town, its listed value is determined by applying average of equalization ratios for all town properties. Vermont Electric Power Co. v. Town of Cavendish, 158 Vt. 369, 611 A.2d 389, 1992 Vt. LEXIS 56 (1992).

State board of appraisers erred in looking only at appraisal of only other utility company in town when determining whether property tax appraisal for plaintiff utility company was appropriate; other relevant evidence existed. Vermont Electric Power Co. v. Town of Cavendish, 158 Vt. 369, 611 A.2d 389, 1992 Vt. LEXIS 56 (1992).

For purposes of determining whether equalization ratio under this section adequately reflects the average of all ratios for properties within the class of comparable properties, a property owner, the taxing authority, and the courts may rely on any relevant evidence. Philbin v. Town of St. George, 156 Vt. 640, 588 A.2d 1060, 1991 Vt. LEXIS 38 (1991) (mem.).

State board of appraisers did not err by not considering evidence of fair market value of comparable properties offered by taxpayer, where there were differences between the comparables and taxpayer’s property but no evidence about the differences and their effect on value and taxpayer testified that the properties “were not truly comparable” and that his property was “unique.” Elliott v. Town of Barnard, 153 Vt. 306, 571 A.2d 653, 1989 Vt. LEXIS 258 (1989).

Where taxpayer failed to offer evidence of the ratio of listed values to fair market values for comparable properties or evidence to town-wide equalization ratio, State board of appraisers had adequate justification for accepting town’s position that the listed value of taxpayer’s property equaled the fair market value. Elliott v. Town of Barnard, 153 Vt. 306, 571 A.2d 653, 1989 Vt. LEXIS 258 (1989).

In de novo trial under this section, evidence was not limited to evidence presented to board of civil authority, and trial court properly considered evidence of higher fair market value, where defect in computer program had resulted in undervaluation of some properties even though city did not file cross-appeal. In re Milot, 151 Vt. 615, 563 A.2d 1005, 1989 Vt. LEXIS 114 (1989).

Once presumption of validity accorded appraisal by board of civil authority disappears, town must produce evidence justifying appraisal, either by showing that it substantially complied with relevant statutory and constitutional requirements, or by substantiating it with independent evidence relative to property’s fair market value and listed value of comparable properties. Littlefield v. Town of Brighton, 151 Vt. 600, 563 A.2d 998, 1989 Vt. LEXIS 115 (1989).

Where presumption of validity of property appraisal was overcome by taxpayer, town’s evidence of listed value of comparable property, without application of equalization rates, was insufficient to support property valuation. Littlefield v. Town of Brighton, 151 Vt. 600, 563 A.2d 998, 1989 Vt. LEXIS 115 (1989).

When taxpayers in appraisal case did not introduce evidence of sales of comparable lakefront lots on the same lake, their speculation that property on a large lake was more valuable than property on a small pond did not substitute for evidence. Sondergeld v. Town of Hubbardton, 150 Vt. 565, 556 A.2d 64, 1988 Vt. LEXIS 231 (1988).

The State board of appraisers has discretionary power to review the evidence and establish fair market value based on that evidence. Kachadorian v. Town of Woodstock, 149 Vt. 446, 545 A.2d 509, 1988 Vt. LEXIS 57 (1988).

Whatever property the State board of appraisers uses to establish fair market value of a property is an evidentiary question and within its discretion; only if the property or properties used are so dissimilar that they are of no comparative value whatsoever will its findings be disturbed on appeal. Kachadorian v. Town of Woodstock, 149 Vt. 446, 545 A.2d 509, 1988 Vt. LEXIS 57 (1988).

The weight to be given testimony, including the testimony of experts, is always within the discretion of the board. Adams v. Town of West Haven, 147 Vt. 618, 523 A.2d 1244, 1987 Vt. LEXIS 434 (1987).

On appeal of a property appraisal, the State board of appraisers, as the trier of fact, is under no obligation to accept, interpret, or apply evidence in accordance with the views of either party. Kruse v. Town of Westford, 145 Vt. 368, 488 A.2d 770, 1985 Vt. LEXIS 304 (1985).

Where on appeal of property appraisal to the State board of appraisers taxpayer overcame the presumption that the appraisal was valid by comparing his property with a neighboring property which had been appraised at a lower value, the town met its burden of producing evidence to justify its appraisal when its expert testified that the property offered by taxpayer as comparable was smaller and, unlike taxpayer’s was without a garage or fireplace. Kruse v. Town of Westford, 145 Vt. 368, 488 A.2d 770, 1985 Vt. LEXIS 304 (1985).

Taxpayer failed to show evidence below was insufficient to support finding that properties were not appraised in excess of fair market value where taxpayer relied on testimony of one witness, who was taxpayer’s employee, and witness relied for his valuation on purchase cost of a small portion of the property and the purchase was not at “arm’s length” and thus not a reliable indicator of fair market value. Mettowee Lumber & Plastics Co. v. Town of Sandgate, 138 Vt. 63, 411 A.2d 368 (1980).

In administrative tax appraisal appeal, board of appraisers, in appraising fair market value of television transmitting facility, could accept appraisal of town’s expert witness, which valued property at what it could be sold for on the open market as a functioning transmitting station, after board repeatedly invited taxpayer to submit evidence of property’s fair market value as a functioning station and taxpayer refused, insisting property should be valued with reference to what it could be sold for piecemeal in the electronics market. Mt. Mansfield TV, Inc. v. Town of Stowe, 137 Vt. 435, 407 A.2d 172, 1979 Vt. LEXIS 1011 (1979).

Which properties the court will consider and compare in reaching its decision as to fair market value is an evidentiary question laying within its sound discretion, and such findings will not be disturbed unless the properties are so dissimilar as to give rise to no comparison at all. Monti v. Town of Northfield, 135 Vt. 97, 369 A.2d 1373, 1977 Vt. LEXIS 565 (1977).

Fair market value.

Where a town met its burden of production with respect to fair market value and taxpayer failed to show an arbitrary or unlawful valuation, reversal of the State appraiser’s decision setting taxpayer’s property in the town grand list at less than its fair market value was required because it was contrary to statutory requirements. Barrett v. Town of Warren, 2005 VT 107, 179 Vt. 134, 892 A.2d 152, 2005 Vt. LEXIS 249 (2005).

The fair market value of property is that price which the property will bring in the market place taking into consideration its availability, use, and limitations, and should not be based on only one criterion. Kachadorian v. Town of Woodstock, 149 Vt. 446, 545 A.2d 509, 1988 Vt. LEXIS 57 (1988).

The fair market value of a comparable property in another town is relevant to the fair market value of the subject property, though not necessarily conclusive on that issue. Kachadorian v. Town of Woodstock, 149 Vt. 446, 545 A.2d 509, 1988 Vt. LEXIS 57 (1988).

Opinions of well informed persons based upon the purposes for which the property is suited are to be considered in arriving at fair market value. Kachadorian v. Town of Woodstock, 149 Vt. 446, 545 A.2d 509, 1988 Vt. LEXIS 57 (1988).

Superior Court’s findings in regard to valuation of real estate for tax purposes, read as a whole, clearly established fair market value and basis therefore where owner’s expert testified that he considered three methods of appraisal, that he relied most heavily on the income approach, that on that basis alone he appraised the property at $250,000.00, and that his final opinion of fair market value was $280,000.00. Brown v. Town of Windsor, 139 Vt. 129, 422 A.2d 1268, 1980 Vt. LEXIS 1485 (1980).

Board of tax appeals, in proceedings held pursuant to this section, is under duty to render findings on the fair market value of the subject property. Town of Walden v. Bucknam, 135 Vt. 326, 376 A.2d 761, 1977 Vt. LEXIS 618 (1977).

Whether the board of civil authority visited person’s property or not for assessment of taxes has little bearing in the trial de novo and the trial court’s obligation to make its own determination as to fair market value. Monti v. Town of Northfield, 135 Vt. 97, 369 A.2d 1373, 1977 Vt. LEXIS 565 (1977).

On appeal to State board of tax appeals from town board of civil authority’s affirmance of property appraisal, State board could, in determining the fair market value of the property, take into account lease and option to purchase. Townsend v. Town of Middlebury, 134 Vt. 438, 365 A.2d 515, 1976 Vt. LEXIS 697 (1976).

Upon appeal from administrative authority’s tax appraisal, lower court, which under this section is to determine the correct valuation of the property, has the duty to appraise the property at its fair market value. Vermont Marble Co. v. Town of West Rutland, 134 Vt. 308, 360 A.2d 91, 1976 Vt. LEXIS 660 (1976).

Supreme Court will not disturb the listers’ or board’s determinations of fair market value of real and personal property unless errors of law affecting the merits of the case appear. In re Heath, 128 Vt. 519, 266 A.2d 812, 1970 Vt. LEXIS 265 (1970).

Findings and conclusions.

In a property tax appeal, the trial court was not bound by the findings of the board of civil authority or limited to the evidence presented below. The proceeding before the court was de novo, which required the court to try the dispute anew, as though it had never been heard before; thus, it followed that a town did not need to file a cross-appeal to advocate for a higher fair market value than that found by the board of civil authority. Dewey v. Town of Waitsfield, 2008 VT 41, 184 Vt. 92, 956 A.2d 508, 2008 Vt. LEXIS 42 (2008).

Trial court did not err in setting the fair market value of taxpayers’ property at $1,500,000.00; the trial court was presented with competing evidence as to fair market value from the taxpayers and a town, and it found the town’s evidence more persuasive. Its findings reflected the proper number of adjustments made to each comparable property, and they accounted for a mathematical error discovered at trial. Dewey v. Town of Waitsfield, 2008 VT 41, 184 Vt. 92, 956 A.2d 508, 2008 Vt. LEXIS 42 (2008).

In determining fair market value, the trial court was not required to make a specific finding regarding the effect of a transmission line on the taxpayers’ property. The trial court had no specific duty to make findings, requested or otherwise, on each point raised; findings were sufficient if they disposed of the issues presented. Dewey v. Town of Waitsfield, 2008 VT 41, 184 Vt. 92, 956 A.2d 508, 2008 Vt. LEXIS 42 (2008).

The board of appraisers did not fail to make adequate findings of fact concerning what comparable properties were rejected and which were used in its market data approach. The board’s valuation fell squarely between the town’s valuation and the taxpayer’s valuation and was within the evidence and, more importantly, within the range of rationality. Lake Morey Inn Golf Resort v. Town of Fairlee, 167 Vt. 245, 704 A.2d 785, 1997 Vt. LEXIS 268 (1997).

The board of appraisers’ conclusions in regard to its use of the cost approach were supported by adequate findings of fact. The board, in detail, described the formula and data it used to compute the value of the property. Lake Morey Inn Golf Resort v. Town of Fairlee, 167 Vt. 245, 704 A.2d 785, 1997 Vt. LEXIS 268 (1997).

In assessing real property, the law merely requires that the court sift through the evidence and make findings sufficient to indicate to the parties how it reached its ultimate conclusion, not that it make findings tailored to any particular theory of valuation. Scott Construction, Inc. v. City of Newport Board of Civil Authority, 165 Vt. 232, 683 A.2d 382, 1996 Vt. LEXIS 70 (1996).

Although State board of appraisers is statutorily required to make site visits as part of assessment of property, the board is not required to indicate the results of its visit in findings and conclusions. Giorgetti v. City of Rutland, 154 Vt. 9, 572 A.2d 933, 1990 Vt. LEXIS 33 (1990).

A simple declaration that the property is unique does not satisfy the board of appraiser’s duty of stating in its findings the basis for its conclusion. Adams v. Town of West Haven, 147 Vt. 618, 523 A.2d 1244, 1987 Vt. LEXIS 434 (1987).

Findings of fact must state how a decision was reached in order to give a taxpayer reasons for the board’s result as well as to give the Supreme Court an adequate basis for review. Adams v. Town of West Haven, 147 Vt. 618, 523 A.2d 1244, 1987 Vt. LEXIS 434 (1987).

On appeal of a property appraisal, the State board of appraisers is required to sift the evidence and make findings sufficient to indicate to the parties how it reached its ultimate conclusion. Kruse v. Town of Westford, 145 Vt. 368, 488 A.2d 770, 1985 Vt. LEXIS 304 (1985).

On appeal of a property appraisal, the board of appraisers is required to make finding of fact supporting its ultimate determination of value. Shetland Properties, Inc. v. Town of Poultney, 145 Vt. 189, 484 A.2d 929, 1984 Vt. LEXIS 570 (1984).

In making findings of fact upon review of appraisal of property, the board of appraisers has a duty to sift the evidence and make a clear statement so that the parties and the Supreme Court will know what was decided and how that decision was reached. Shetland Properties, Inc. v. Town of Poultney, 145 Vt. 189, 484 A.2d 929, 1984 Vt. LEXIS 570 (1984).

Where board of appraisers affirmed reappraisal of taxpayer’s real estate but its findings of fact contained no comparison of the characteristics of taxpayer’s property with those characteristics of properties which it found to be comparable, the board’s failure to make specific findings of fact to support its conclusions concerning comparable property values constituted reversible error. Shetland Properties, Inc. v. Town of Poultney, 145 Vt. 189, 484 A.2d 929, 1984 Vt. LEXIS 570 (1984).

Where on appeal of property reappraisal the board of appraisers merely recited certain testimony in the case and accepted the conclusions of the listers regarding a material change in the property, without findings of fact sufficient to support its conclusions, the board committed reversible error. Shetland Properties, Inc. v. Town of Poultney, 145 Vt. 189, 484 A.2d 929, 1984 Vt. LEXIS 570 (1984).

On appeal of property appraisal State board of appraisers is required to make findings of fact supporting its ultimate determination and it has a duty to sift the evidence and make a clear statement so that the parties and the Supreme Court will know what was decided and how the decision was reached. Manganelli v. Town of Proctor, 144 Vt. 451, 479 A.2d 155, 1984 Vt. LEXIS 501 (1984).

Where on appeal of property valuation, board of appraiser found that the fair market value of taxpayers’ property was $380,000.00 and applied a ration of 32 percent, representing the “overall appraisal ratio [of all properties] in the town,” but make no findings as to the fair market value shown by comparable properties within the town and resulting equalization rate or that taxpayers’ property was unique, thus justifying the application of the general town ratio, the findings were insufficient, inconsistent, and could be resolved only through conjecture and, therefore, could not stand. Kachadorian v. Town of Woodstock, 144 Vt. 348, 477 A.2d 965, 1984 Vt. LEXIS 481 (1984).

On appeal of property appraisal, State board of appraisers is under a duty to render findings on the fair market value of the subject property. Bailey v. Town of Craftsbury, 144 Vt. 260, 475 A.2d 1390, 1984 Vt. LEXIS 459 (1984).

Where on appeal State board of appraisers made findings that compared the listed values of plaintiffs’ properties with the listed value of comparable properties within the town, but failed to find the fair market value of plaintiffs’ properties, the matter would be remanded for a finding on the fair market value. Bailey v. Town of Craftsbury, 144 Vt. 260, 475 A.2d 1390, 1984 Vt. LEXIS 459 (1984).

In making findings of fact upon review of appraisal of property, the board of appraisers has a duty to sift the evidence and make a clear statement so that the parties and the Supreme Court will know what was decided and how the decision was reached. Chelsea Limited Partnership v. Town of Chelsea, 142 Vt. 538, 458 A.2d 1096, 1983 Vt. LEXIS 428 (1983).

Findings by board of appraisers, on appeal of town’s appraisal of property, rejecting cost method used by the listers to ascertain the fair market value of taxpayer’s property, adopting income method of ascertaining fair market value, and incorporating unrefuted evidence presented by taxpayer as to the income valuation, were adequate to support board’s decision as to the amount at which the property would be set in the grand list. Chelsea Limited Partnership v. Town of Chelsea, 142 Vt. 538, 458 A.2d 1096, 1983 Vt. LEXIS 428 (1983).

On appeal of a property appraisal, the board of appraisers is required to make findings of fact supporting its ultimate determination of value. Chelsea Limited Partnership v. Town of Chelsea, 142 Vt. 538, 458 A.2d 1096, 1983 Vt. LEXIS 428 (1983).

This section mandates a finding of fair market value of subject properties. Villeneuve v. Town of Waterville, 141 Vt. 154, 446 A.2d 358, 1982 Vt. LEXIS 498 (1982).

Trial court properly sustained the listers’ and board of civil authority’s appraisals as to woodlots owned by taxpayers, a substantial increase over the fair market value in the previous year, where the trial court found the fair market values of the properties involved and also found the sale price of a comparable property, although not specifically stating it was fair market value; the finding of a sale price, although not as specific as it might have been, was sufficient to support the judgment, as the sale price, which was arrived at in an arms-length transaction by a willing buyer and seller, was functionally the same as the fair market value. Villeneuve v. Town of Waterville, 141 Vt. 154, 446 A.2d 358, 1982 Vt. LEXIS 498 (1982).

Where the board of appraisers, on appeal from town’s valuation of property, admitted appraisal report of town’s expert, which included a clear mathematical error, and there was no other credible evidence supporting his conclusion, the board’s reliance upon the erroneous fair market value figure of the expert in determining the appraised value of the property constituted error. Corrette v. Town of St. Johnsbury, 140 Vt. 315, 437 A.2d 1112, 1981 Vt. LEXIS 619 (1981).

In making findings of fact upon review of valuation of property, the board of appraiser has a duty to sift the evidence and make a clear statement so that the parties and the Supreme Court will know what was decided and how the decision was reached. Corrette v. Town of St. Johnsbury, 140 Vt. 315, 437 A.2d 1112, 1981 Vt. LEXIS 619 (1981).

On appeal of a property appraisal, the board of appraisers, after a de novo hearing, is obliged to make findings of facts supporting its ultimate determination of value. Corrette v. Town of St. Johnsbury, 140 Vt. 315, 437 A.2d 1112, 1981 Vt. LEXIS 619 (1981).

This section mandates the use of comparable property values and where this is the principal issue on appeal, the board of appraisers must make specific findings in that regard. Corrette v. Town of St. Johnsbury, 140 Vt. 315, 437 A.2d 1112, 1981 Vt. LEXIS 619 (1981).

Where findings of fact of board of appraisers on appeal from property valuation alleging that appraisal was inequitable when compared with comparable properties merely set forth the positions of both parties and the evidence in support of their claims, only made positive findings in respect to the descriptions of the real estate involved and found as facts all of the comparables testified to by all of the parties, but made no reference to the specific individual properties used in evidence, the absence of findings as to comparables and absence of positive findings on the evidence presented left the board’s conclusions unsupported and, in reaching a conclusion without findings of facts sufficient to support it conclusions, the board committed reversible error. Corrette v. Town of St. Johnsbury, 140 Vt. 315, 437 A.2d 1112, 1981 Vt. LEXIS 619 (1981).

Although findings are required in tax appeals once made, a party will not be heard to object to their adequacy unless party has requested new or further findings. Jeffer v. Town of Chester, 138 Vt. 478, 417 A.2d 937, 1980 Vt. LEXIS 1264 (1980).

Where lower court held that method listers used to appraiser property followed the statutory requisites, considering factors including location, use, access, road frontage, view, size, type, and sales of comparable properties, and listers viewed other properties and the subject property, appraisal would not be disturbed unless some error of law was made, and no error was shown where taxpayer placed in evidence only one small assertedly comparable parcel appraised at approximately half the per acre value of his property and that parcel was much steeper in grade and thus less valuable. Mettowee Lumber & Plastics Co. v. Town of Sandgate, 138 Vt. 63, 411 A.2d 368 (1980).

Where court in de novo appeal of property evaluation for tax purposes made inconsistent findings on the meaning and measure of fair market value as applied to the property, and Supreme Court’s evaluation of lower court’s intentions could only be reached by conjecture, reversal and remand for resolution of the inconsistency was required. Rutland Country Club, Inc. v. City of Rutland, 137 Vt. 590, 409 A.2d 591, 1979 Vt. LEXIS 1089 (1979).

Failure of court hearing de novo appeal of appraisal of property for tax purpose to make requisite findings of fair market value was prejudicial error requiring reversal. Leroux v. Town of Wheelock, 136 Vt. 396, 392 A.2d 387, 1978 Vt. LEXIS 639 (1978).

In appeal to lower court from administrative authority’s tax appraisal, court committed reversible error where its conclusions as to value of the land had no basis under the facts found. Vermont Marble Co. v. Town of West Rutland, 134 Vt. 308, 360 A.2d 91, 1976 Vt. LEXIS 660 (1976).

Function of board of appraisers.

Determination of whether properties are “comparable” for purposes of establishing equalization ratio under this section is within the sound discretion of the State board of appraisers. Philbin v. Town of St. George, 156 Vt. 640, 588 A.2d 1060, 1991 Vt. LEXIS 38 (1991) (mem.).

Upon appeal of appraisal, board of appraisers is not required to sit as trier of fact and determine whether facts introduced to overcome presumption of validity of appraisal of property are more believable than the facts supporting the assessment; the standard for evaluation of the facts sought to be used to overcome the burden is not one of credibility, requiring a subjective evaluation of the evidence, but rather of admissibility, requiring evaluation of whether the fact offered in proof affords a basis for a rational inference of the fact to be proved. Rutland County Club v. City of Rutland, 140 Vt. 142, 436 A.2d 730, 1981 Vt. LEXIS 573 (1981).

The ultimate decision of the board of tax appraisers is focused upon the critical question of whether a taxpayer’s property has been appraised at its fair market value within the legal concepts of that term and in compliance with statutory requirements. Town of Barnet v. New England Power Co., 130 Vt. 407, 296 A.2d 228, 1972 Vt. LEXIS 291 (1972).

Inspection.

Statutes clearly require an inspection at both the board of civil authority (BCA) and State appraiser appeals, and neither the board of civil authority nor the State appraiser is afforded discretion to ignore this requirement. Garbitelli v. Town of Brookfield, 2009 VT 109, 186 Vt. 648, 987 A.2d 327, 2009 Vt. LEXIS 128 (2009) (mem.).

Full inspection is a prerequisite to review by the State appraiser. Garbitelli v. Town of Brookfield, 2009 VT 109, 186 Vt. 648, 987 A.2d 327, 2009 Vt. LEXIS 128 (2009) (mem.).

State appraiser properly dismissed a taxpayer’s appeals from reappraisals on the ground that the taxpayer had refused to allow a full interior inspection. The limited inspections taxpayer did allow were insufficient to overcome the presumption in favor of the board of civil authority’s determination; estoppel did not apply because the taxpayer offered no evidence demonstrating that the State appraiser intended to induce reliance on the sufficiency of a limited inspection and because the taxpayer chose to limit the inspection of the taxpayer’s properties; and although it was inappropriate for the town appraiser to communicate with the State appraiser while the taxpayer’s appeals were pending, the statutes requiring inspection did not allow the State appraiser any discretion to ignore this requirement. Garbitelli v. Town of Brookfield, 2009 VT 109, 186 Vt. 648, 987 A.2d 327, 2009 Vt. LEXIS 128 (2009) (mem.).

Absence of an adequate inspection by the State appraiser upon appeal of the board of civil authority decision demands dismissal. Inherent in such an appeal is the presumption that the challenged appraisal is valid and the duty of overcoming this presumption of validity lies with the aggrieved taxpayer; in the absence of an adequate inspection, there is simply no way that the taxpayer can present the evidence needed to extinguish this presumption. Garbitelli v. Town of Brookfield, 2009 VT 109, 186 Vt. 648, 987 A.2d 327, 2009 Vt. LEXIS 128 (2009) (mem.).

Listed values.

Approach taken by an appraiser in determining listed value was consistent with the applicable statute and with case law. After the parties agreed to the fair market value, the appraiser considered evidence to determine an appropriate equalization ratio; an opinion letter offered by taxpayers in support of the value-added methodology was irrelevant to this analysis, and even assuming that the document was excluded in error, the taxpayers failed to show that they suffered any harm from its exclusion. Shaffer v. Town of Waitsfield, 2008 VT 44, 183 Vt. 428, 956 A.2d 520, 2008 Vt. LEXIS 43 (2008).

Appeals to the board of appraisers are hearings de novo, and the board is required to make findings of fact supporting its ultimate determination; where conflicting evidence has been presented, the board must state clearly what evidence it credits and why, so that the parties and Supreme Court will know how the decision was reached; further, unless the board’s determination of value is supported by adequate findings, it will not be affirmed. Beach Properties, Inc. v. Town of Ferrisburg, 161 Vt. 368, 640 A.2d 50, 1994 Vt. LEXIS 24 (1994).

State board of appraisers’ function, to determine whether listed value of property corresponds to listed value of comparable properties within town, requires two steps: establishment of fair market value and equalization of that value to insure comparable listing of comparable properties. Vermont Electric Power Co. v. Town of Cavendish, 158 Vt. 369, 611 A.2d 389, 1992 Vt. LEXIS 56 (1992).

State board of appraisers committed error by looking at the listed value of properties which were not comparable to the property before it, in determining whether there were differences between listed and fair market values. Alexander v. Town of Barton, 152 Vt. 148, 565 A.2d 1294, 1989 Vt. LEXIS 283 (1989).

In deciding whether property’s listed value is comparable to that of other properties, State board of appraisers must use two-step procedure: first, it must determine subject property’s fair market value; and second, that value must be equalized to ensure listing is comparable to corresponding properties. Littlefield v. Town of Brighton, 151 Vt. 600, 563 A.2d 998, 1989 Vt. LEXIS 115 (1989).

When a tax assessment is appealed to the State board of appraisers, if the property is unique within the town, its listed value is determined by applying the common equalization ration of all properties in the town to its market value. Kachadorian v. Town of Woodstock, 149 Vt. 446, 545 A.2d 509, 1988 Vt. LEXIS 57 (1988).

On appeal of property valuation to board of appraisers, the listed value of a comparable property within the town is not to be used in determining a subject property’s fair market value, and listed value alone, in the absence of fair market value, is useless in arriving at a ration for equalization purposes. Kachadorian v. Town of Woodstock, 144 Vt. 348, 477 A.2d 965, 1984 Vt. LEXIS 481 (1984).

Where unique property is the subject of litigation, under this section providing that if upon appeal from appraisal of property for tax purposes it is found that the listed value of the property does not correspond to the listed value of comparable properties within the town the property shall be set in the list at a corresponding value, all property within the town is comparable for the purpose of determining the proper corresponding listed value. New England Power Co. v. Town of Barnet, 134 Vt. 498, 367 A.2d 1363, 1976 Vt. LEXIS 713 (1976).

Since the county board of appraisers exercise a judicial function, the correctness of its actions will be inquired into where substantial questions of law affecting the merits of a case are in issue. In re Heath, 128 Vt. 519, 266 A.2d 812, 1970 Vt. LEXIS 265 (1970).

Prejudicial error.

Where, in landowner’s proceeding for lowering of land’s appraisal for property tax purposes, court was required by statute to find fair market value and, because of its confusion over fair market value and listed value, court made a finding only as to listed value, there was prejudicial error requiring reversal. Ames v. Town of Danby, 136 Vt. 78, 385 A.2d 1075, 1978 Vt. LEXIS 691 (1978).

Where a prime issue raised before the board of tax appraisers by petitioners was whether the evidence introduced by them established that the listed value of comparable properties corresponded to the listed value of petitioner’s land, board’s failure to decide the issue was not in compliance with this section and was prejudicial error. In re Reed, 129 Vt. 102, 272 A.2d 127, 1970 Vt. LEXIS 213 (1970).

Presumptions.

By producing the expert appraiser’s testimony that the properties were overvalued, the time-share owners overcame the presumption of validity of a town’s tax appraisal. Jackson Gore Inn v. Town of Ludlow, 2020 VT 11, 211 Vt. 498, 228 A.3d 643, 2020 Vt. LEXIS 15 (2020).

The presumption of validity of appraisal disappears once the taxpayer introduces evidence showing that the appraisal exceeded fair market value. Elliott v. Town of Barnard, 153 Vt. 306, 571 A.2d 653, 1989 Vt. LEXIS 258 (1989).

Presumption of validity accorded appraisal reached by board of civil authority is overcome and disappears once taxpayer presents evidence that fairly and reasonably indicates that property was assessed at more than fair market value or that listed value exceeded percentage of fair market value applied generally within community. Littlefield v. Town of Brighton, 151 Vt. 600, 563 A.2d 998, 1989 Vt. LEXIS 115 (1989).

Taxpayers’ objections to appraisal of property, supported by references to valuation standards in State appraisal manual, together with taxpayers’ testimony of value of property and of neighboring properties, overcame presumption of validity of town appraisal in hearing before State board of appraisers under this section. Littlefield v. Town of Brighton, 151 Vt. 600, 563 A.2d 998, 1989 Vt. LEXIS 115 (1989).

A tax appraisal by a municipality enjoys a presumption of validity, and a taxpayer challenging the appraisal has both the initial burden of overcoming the presumption and the underlying burden of proving that the standard of this section was violated. Alison v. Town of Rochester, 150 Vt. 525, 554 A.2d 259, 1988 Vt. LEXIS 204 (1988).

In a de novo appeal to the Superior Court under this section, a presumption of validity and legality attaches to the actions of the listers, and once the town introduces the appraisal of the taxpayer’s property into evidence, the burden of going forward with evidence to overcome the presumption resides with the taxpayer. Beaudry v. Town of Chester, 143 Vt. 182, 463 A.2d 220, 1983 Vt. LEXIS 469 (1983).

A presumption that an appraisal is valid and legal accompanies a taxpayer’s appeal to the State board of appraisers; the burden rests on the taxpayer to go forward with evidence to overcome this presumption. Adams v. Town of West Haven, 147 Vt. 618, 523 A.2d 1244, 1987 Vt. LEXIS 434 (1987).

In appeals taken to the State board of appraisers there is a presumption that the appraisal is valid, and the burden rests with the taxpayer to go forward with evidence to overcome the presumption. Kruse v. Town of Westford, 145 Vt. 368, 488 A.2d 770, 1985 Vt. LEXIS 304 (1985).

The standard by which the trier must weigh the facts sought to be used to overcome the presumption of validity of a property appraisal is not one of credibility, but rather of admissibility, requiring evaluation of whether the fact offered in proof affords a basis for a rational inference of the fact to be proved. Kruse v. Town of Westford, 145 Vt. 368, 488 A.2d 770, 1985 Vt. LEXIS 304 (1985).

Inherent in an appeal before the State board of appraisers if the presumption that the challenged appraisal is valid. Manganelli v. Town of Proctor, 144 Vt. 451, 479 A.2d 155, 1984 Vt. LEXIS 501 (1984).

The presumption of validity attaching upon appeal of the town’s evaluation of property is overcome when credible evidence is introduced fairly and reasonably indicating that the property was assessed at more than the fair market value or that the listed value exceeded the fair market value applied generally to property within the community; upon the introduction of such evidence, the presumption disappears and becomes functus officio. Rutland County Club v. City of Rutland, 140 Vt. 142, 436 A.2d 730, 1981 Vt. LEXIS 573 (1981).

In an appeal taken to board of appraisers, there is a presumption that the appraisal is valid, and the property owner has the burden of going forward with evidence to overcome that presumption. Rutland County Club v. City of Rutland, 140 Vt. 142, 436 A.2d 730, 1981 Vt. LEXIS 573 (1981).

In a de novo appeal to the Superior Court of valuation of property for tax purposes a presumption of validity and legality attached to the lister’s actions and remains until evidence is introduced which fairly and reasonably tend to show the property was appraised in excess of its fair market value. Mettowee Lumber & Plastics Co. v. Town of Sandgate, 138 Vt. 63, 411 A.2d 368 (1980).

In a de novo appeal to Superior Court of appraisal of land for tax purposes, a presumption of validity and legality attaches to the actions of the listers, and once the town introduce the appraisal into evidence the burden of going forward with evidence to overcome the presumption resides with the taxpayer. Leroux v. Town of Wheelock, 136 Vt. 396, 392 A.2d 387, 1978 Vt. LEXIS 639 (1978).

In de novo appeal to Superior Court questioning validity of town’s method of appraising property value, presumption of validity and legality attaches to actions of listers, and once town introduces appraisal of taxpayer’s property into evidence, burden of going forward with evidence to overcome presumption resides with moving party. Welch v. Town of Ludlow, 136 Vt. 83, 385 A.2d 1105, 1978 Vt. LEXIS 692 (1978).

A presumption of validity and legality attaches to the actions of listers, and when a town introduces the appraisal into evidence, the burden of going forward with evidence to overcome the presumption rest with the taxpayer, and upon presentation of such evidence the presumption disappears and the town must then produce evidence of fair market value and evidence relative to listed values of comparable properties. Ames v. Town of Danby, 136 Vt. 78, 385 A.2d 1075, 1978 Vt. LEXIS 691 (1978).

In the de novo hearing required by this section the taxing authority has the burden of showing fair market value and having done so, the presumption is that the appraisal and subsequent listing is valid; in order to rebut this presumption, the taxpayer must produce countervailing evidence, such as the lack of uniformity, or a showing of excessiveness. Town of Barnet v. Palazzi Corp., 135 Vt. 298, 376 A.2d 24, 1977 Vt. LEXIS 612 (1977).

Property values.

Constitutional considerations of equal protection and proportional contribution require State board of appraisers to apply equalization ratio to subject property to ascertain its listed value. Vermont Electric Power Co. v. Town of Cavendish, 158 Vt. 369, 611 A.2d 389, 1992 Vt. LEXIS 56 (1992).

Fact that fair market value of plaintiff utility company’s property was established by methods other than review of sales of comparable properties does not make equalization ratio inapplicable; where equalization ratios are applied to property assessed at fair market value, constitutional considerations of equal protection and proportional contribution require that they be applied to all property so valued. Vermont Electric Power Co. v. Town of Cavendish, 158 Vt. 369, 611 A.2d 389, 1992 Vt. LEXIS 56 (1992).

Under the statutes relating to an appeal from the appraisal of property for tax purposes, the court is mandated to determine the correct valuation of the property taking into account the requirements of law and the provisions of the State and federal constitutions. Bookstaver v. Town of Westminster, 131 Vt. 133, 300 A.2d 891, 1973 Vt. LEXIS 280 (1973).

Purpose.

An appeal of property valuation to the board of appraisers is a de novo proceeding, and the board must first determine the fair market value of the property, then “equalize” that amount to insure that the property is listed comparably to corresponding properties in town. Gouin v. Town of Halifax, 148 Vt. 524, 535 A.2d 788, 1987 Vt. LEXIS 534 (1987).

Under this section, the board of appraisers must determine whether the listed value of the property corresponds to the listed value of comparable properties within the town. Gouin v. Town of Halifax, 148 Vt. 524, 535 A.2d 788, 1987 Vt. LEXIS 534 (1987).

One vital purpose of the statutes relating to tax appraisal appeals is to grant to an aggrieved taxpayer the opportunity to establish uniformity of evaluation as it relates to the taxpayer’s his property. Bookstaver v. Town of Westminster, 131 Vt. 133, 300 A.2d 891, 1973 Vt. LEXIS 280 (1973).

Real and personal property.

A town that values, for purposes of taxation, business personal property at fair market value may not have one equalization ratio for real property and another (or none) for personal property. Real and personal property must be considered comparable for purposes of this section. Knollwood Building Condominiums v. Town of Rutland, 166 Vt. 529, 699 A.2d 31, 1997 Vt. LEXIS 99 (1997).

Remand.

Decision of State board of appraisers was remanded where the record did not reveal whether statutorily mandated site visit had been conducted by board in connection with assessment of taxpayer’s property. Giorgetti v. City of Rutland, 154 Vt. 9, 572 A.2d 933, 1990 Vt. LEXIS 33 (1990).

Where record as certified to Supreme Court upon taxpayer’s petition for writ of certiorari to review board of appraisers’ appraisal of personal property was inadequate as a matter of law to determine the regularity of the board’s exercise of jurisdiction, cause would be remanded. In re Heath, 128 Vt. 519, 266 A.2d 812, 1970 Vt. LEXIS 265 (1970).

Review.

Although de novo review presumes the validity of a taxing authority’s decision only until a taxpayer produces some evidence to the contrary, this does not mean that a court ultimately owes no deference to the decision of the administrative agency. Mollica v. Div. of Prop. Valuation & Review, 2008 VT 60, 184 Vt. 83, 955 A.2d 1171, 2008 Vt. LEXIS 54 (2008).

Property owners could not assert their action challenging property tax assessments in a federal court because the State court provided potential for an adequate and complete remedy including consideration of the owners’ constitutional claims. Boivin v. Town of Addison, 2008 U.S. Dist. LEXIS 53777 (D. Vt. July 15, 2008), aff'd in part, 366 Fed. Appx. 201, 2010 U.S. App. LEXIS 3054 (2d Cir. 2010).

Court’s determination of whether fair market value of real estate corresponds to fair market value of comparable properties within the town will be upheld on appeal unless the properties are so different that comparison is illogical. Harte v. Town of Bennington, 153 Vt. 256, 571 A.2d 53, 1989 Vt. LEXIS 251 (1989).

Town had no standing to raise issue that board of appraisers failed to perform second step prescribed by this section, comparing the subject property to comparable properties for purposes of equalization, where any such failure could only have benefited the town. Gionet v. Town of Goshen, 152 Vt. 451, 566 A.2d 1349, 1989 Vt. LEXIS 187 (1989).

The Supreme Court’s function on appeal from a determination of the board of appraisers is to scrutinize the board’s actions in conducting its de novo review of a property appraisal. Kruse v. Town of Westford, 145 Vt. 368, 488 A.2d 770, 1985 Vt. LEXIS 304 (1985).

Since the county board of appraisers exercise a judicial function, the correctness of its actions will be inquired into where substantial questions of law affecting the merits of a case are in issue. In re Heath, 128 Vt. 519, 266 A.2d 812, 1970 Vt. LEXIS 265 (1970).

Supreme Court will not disturb the listers’ or board’s determinations of fair market value of real and personal property unless errors of law affecting the merits of the case appear. In re Heath, 128 Vt. 519, 266 A.2d 812, 1970 Vt. LEXIS 265 (1970).

Cited.

Cited in Rooney Vermont Associates v. Town of Pownal, 140 Vt. 150, 436 A.2d 733, 1981 Vt. LEXIS 574 (1981); Soucy v. Soucy Motors, Inc., 143 Vt. 615, 471 A.2d 224, 1983 Vt. LEXIS 596 (1983); Saufroy v. Town of Danville, 148 Vt. 624, 538 A.2d 168, 1987 Vt. LEXIS 574 (1987); Couse v. Town of Leicester, 156 Vt. 570, 593 A.2d 473, 1991 Vt. LEXIS 97 (1991); Miller v. Town of West Windsor, 167 Vt. 588, 704 A.2d 1170, 1997 Vt. LEXIS 282 (1997); USGen New Eng., Inc. v. Town of Rockingham, 2003 VT 102, 176 Vt. 104, 838 A.2d 927, 2003 Vt. LEXIS 293 (2003) (mem.).

§ 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.

HISTORY: 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.

History

Amendments

—2001. Inserted “one copy to the commissioner” in the first sentence.

—1999. Substituted “4461” for “4462” in the first sentence, and substituted “property” for “estate” and added the phrase beginning “except that if” at the end of the second sentence.

—1977. Substituted “director” for “commissioner”.

—1973. No. 86 added provisions relating to complete revaluation. No 106 added reference to “clerk of court” and “court”.

—1971 (Adj. Sess.). Rephrased and omitted reference to clerk of the court.

2001 amendment. 2001, No. 63 , § 283(b) provided: “Sections 279 [which amended section 5412 of this title] and 279a of this act [which amended this section] shall take effect upon passage [June 16, 2001] and apply to appeals from grand lists of April 1, 2001 and thereafter.”

ANNOTATIONS

Construction.

There is a material alteration or change in a subject property under this section when such alleged alteration or change is relevant and of consequence in the valuation of the property. Shetland Properties, Inc. v. Town of Poultney, 145 Vt. 189, 484 A.2d 929, 1984 Vt. LEXIS 570 (1984).

Contested cases.

Proceedings before tax appeals board brought by taxpayers aggrieved by decisions of board of civil authority sustaining listers’ appraisal of taxpayers’ real estate were contested case appealable directly to Supreme Court under Administrative Procedure Act. Amodeo v. Town of Readsboro, 137 Vt. 105, 401 A.2d 902, 1979 Vt. LEXIS 911 (1979).

Entry of judgment.

In absence of statutory authority, Supreme Court would consider date when tax appeals board’s determinations were received by Director of Property Valuation and Review as the date of entry of an appealable judgment. Amodeo v. Town of Readsboro, 137 Vt. 105, 401 A.2d 902, 1979 Vt. LEXIS 911 (1979).

Prior valuations of same property.

Appraisal of value established by appeal to State tax appeal board in 1971 action did not under the doctrine of res judicata bar litigation of appraisal value in 1973 of property since the only issue in the 1971 appeal was the appraisal value of the property in that year and the appraisal value of the property in 1973 was not and could not have been decided in the 1971 appeal. City of Barre v. Town of Orange, 139 Vt. 437, 430 A.2d 444, 1981 Vt. LEXIS 492 (1981).

Purpose.

Intent of this section is to prevent annual, unwarranted reappraisals and provide a reasonable period of stability following a taxpayer’s appeal to the board. Shetland Properties, Inc. v. Town of Poultney, 145 Vt. 189, 484 A.2d 929, 1984 Vt. LEXIS 570 (1984).

Reappraisal.

When a town had selectively reappraised a taxpayer’s property in 2007 in violation of the Proportional Contribution Clause, it would be inappropriate to remand the matter for a hearing on the property’s 2007 fair market value, as the taxpayer’s property had been subject to revaluation in 2007 when numerous other similarly situated properties inexplicably were not. Instead, the 2006 grand list figure was to be reinstated, and this figure was to become the basis for the grand list for the two next ensuing years. Selectboard, Town of Castleton v. Parento, 2009 VT 65, 186 Vt. 616, 988 A.2d 158, 2009 Vt. LEXIS 120 (2009) (mem.).

If it is determined that an individual reappraisal of real estate within three years of a prior appeal to the board of appraisers is warranted, the elements of a reappraisal should be limited to those which have been affected by the material alteration, change, or damage which provided the initial basis for undertaking the reappraisal; a change in one element of the previous appraisal, as approved by the board, would not necessarily provide a valid basis for the reconsideration of all the factors in the appraisal. Shetland Properties, Inc. v. Town of Poultney, 145 Vt. 189, 484 A.2d 929, 1984 Vt. LEXIS 570 (1984).

Untimely filing.

Where notice of appeal from decision of tax appeals board was not timely filed, Supreme Court did not have jurisdiction of appeal. Amodeo v. Town of Readsboro, 137 Vt. 105, 401 A.2d 902, 1979 Vt. LEXIS 911 (1979).

Cited.

Cited in Heindel v. Town of Grafton, 140 Vt. 147, 435 A.2d 695, 1981 Vt. LEXIS 565 (1981); Burton v. Town of Salisbury, 173 Vt. 177, 790 A.2d 394, 2001 Vt. LEXIS 413 (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.

HISTORY: Added 1975, No. 158 (Adj. Sess.), § 2.

ANNOTATIONS

Applicability.

Regardless of whether the town clerk had authority to assess taxes against the time-share owners, the clerk’s actions did not alone finalize the grand list, and the time-share owners were not entitled to the protection of the statute governing tax credits upon successful appeals because the appeals process had not been completed. Jackson Gore Inn v. Town of Ludlow, 2020 VT 11, 211 Vt. 498, 228 A.3d 643, 2020 Vt. LEXIS 15 (2020).

Chapter 133. Assessment and Collection of Taxes

CROSS REFERENCES

Tax good standing requirement for obtaining State license, governmental contract, or employment, see § 3113 of this title.

Requirement of filing of surety bonds by persons required to collect, withhold, remit, or pay taxes, see § 3114 of this title.

State payment in lieu of property taxes, see chapter 123, subchapters 4-4B of this title.

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.

History

Source.

V.S. 1947, § 797. P.L. § 752. G.L. § 865. P.S. § 605. V.S. § 467. R.L. § 367. G.S. 84, § 2. R.S. 77, § 2. R. 1797, p. 335, § 2. R. 1787, p. 125.

ANNOTATIONS

Review.

Determination of land’s fair market value for purposes of required uniformity in assessment of property taxes would not be disturbed on appeal unless some error of law appeared. International Paper Co. v. Town of Winhall, 133 Vt. 385, 340 A.2d 42, 1975 Vt. LEXIS 411 (1975).

—Rolling reappraisal.

“Rolling reappraisal” method of property valuation, reassessing one class of property each year determined to be most in need, was not inconsistent with the obligations imposed on towns as to the listing of real property. Alexander v. Town of Barton, 152 Vt. 148, 565 A.2d 1294, 1989 Vt. LEXIS 283 (1989).

Cited.

Cited in Kachadorian v. Town of Woodstock, 144 Vt. 348, 477 A.2d 965, 1984 Vt. LEXIS 481 (1984); Kachadorian v. Town of Woodstock, 149 Vt. 446, 545 A.2d 509, 1988 Vt. LEXIS 57 (1988).

§ 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.

History

Source.

V.S. 1947, § 747. P.L. § 702. G.L. § 808. 1917, No. 254 , § 776. 1908, No. 27 , § 1. P.S. § 576. 1896, No. 14 , §§ 1, 2. V.S. § 437. 1892, No. 12 , § 2. 1882, No. 1 , § 35. R.L. § 351. 1874, No. 12 . 1872, No. 8 . G.S. 83, § 30. G.S. 84, §§ 66, 67. 1855, No. 43 , § 29. 1854, No. 66 . 1851, No. 40 , §§ 1, 2.

CROSS REFERENCES

Grand tax lists, see chapter 129 of this title.

ANNOTATIONS

Proper list for assessment.

Where statute provided that selectmen should annually assess State school tax previous to the first day of January, but did not specify list on which it was to be assessed, it should be assessed on the list last completed and in force at the time of assessment. Sprague v. Abbott, 58 Vt. 331, 2 A. 123, 1885 Vt. LEXIS 7 (1885).

Where indebted school district was enlarged in March, 1873, by annexation of part of adjoining district and where, in April, 1874, the district as it was before its enlargement, in order to pay the debt, voted to assess a tax on the list of 1872, it should have been assessed on the list completed in May, 1874, as the district assumed. Hassam v. Edwards, 49 Vt. 7, 1876 Vt. LEXIS 65 (1876).

Where school district voted in October to raise money to defray expenses of school house, and without having proceeded to raise the money, on the following March voted to raise three hundred cents on the dollar for the same purpose, the latter vote superseded the former, and thereby became the only vote upon which a tax could be made out, and having been passed after the first day of March, was a vote of a tax on the grand list to be completed on the May following. Capron v. Raistrick, 44 Vt. 515, 1872 Vt. LEXIS 57 (1872).

Vote of tax after first day of March cannot be a lawful vote of a tax upon the grand list completed during the preceding May, though it was expressly made so, and fact that it was so made appeared from records of district. Capron v. Raistrick, 44 Vt. 515, 1872 Vt. LEXIS 57 (1872).

By this section, taxes voted at annual town meeting in March must be assessed upon the list of May following; where selectmen were directed to assess tax upon grand list of prior year; tax so assessed was invalid. Alger v. Curry, 38 Vt. 382 (1866), Same case, (1868) 40 Vt. 437.

§ 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.

History

Source.

V.S. 1947, § 739. P.L. § 694. G.L. § 804. 1910, No. 47 , §§ 16, 17.

Revision note—

Words “described in sections 4262-4264 of this title” were added to clarify the section.

CROSS REFERENCES

Taxes based on amended or corrected list, see § 4797 of this title.

§ 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.

History

Source.

V.S. 1947, § 734. P.L. § 689. G.L. § 799. P.S. § 574. V.S. § 435. R.L. § 353. 1874, No. 7 , § 2.

Revision note—

Words “described in section 4261 of this title” were added in the interest of clarity.

CROSS REFERENCES

Taxes based on amended or corrected list, see § 4797 of this title.

§ 4605. Assessment when appraisal on other than April 1.

  1. 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.
  2. 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.

History

Source.

Subsec. (a): 1957, No. 260 , § 6.

Subsec. (b): 1957, No. 260 , § 5.

Revision note—

Words “time allowed in section 4403 of this title” were substituted for “time allowed therefor” in the interest of clarity, and words “described in section 4047 of this title” were added for the same reason.

§ 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.

History

Source.

V.S. 1947, § 710. P.L. § 665. G.L. § 777. P.S. § 558. V.S. § 421. R.L. § 344. G.S. 83, § 23. 1855, No. 43 , § 22. 1844, No. 8 , § 2. 1841, No. 16 , § 24. 1825, No. 9 , § 19. 1820, p. 5, § 5.

CROSS REFERENCES

Proration of taxes, see 27 V.S.A. § 309 .

§ 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.

HISTORY: Amended 1957, No. 219 , § 2, eff. July 1, 1961.

History

Source.

V.S. 1947, § 798. P.L. § 753. G.L. § 866. P.S. § 606. 1898, No. 17 , § 1.

Amendments

—1957. “Appraisal” substituted for “quadrennial appraisal”.

ANNOTATIONS

Irregularities covered.

Inclusion of machinery in tax list both properly as a part of real estate to which it is fixed, and erroneously as personal property, and the assessment of it in each form, is within the scope of this section. Bixby v. Roscoe, 85 Vt. 105, 81 A. 255, 1911 Vt. LEXIS 217 (1911).

§ 4608. Resident ownership ratio.

  1. 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:
      1. resident of the town or city;
      2. resident of the State but not of the town or city;
      3. individual domiciled outside the State; or
      4. corporation, partnership, or other entity.
  2. 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.
  3. 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.
  4. 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.
  5. “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.

HISTORY: 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.

History

Amendments

—1991 (Adj. Sess.). Subsec. (a): Deleted “fair market” preceding “value” in subdiv. (1) and in the introductory paragraph of subdiv. (2).

Subsec. (b): Inserted “at fair market value” following “compute the percentage”.

—1991. Rewrote subdiv. (a)(2) and subsecs. (b) and (e).

—1977. Substituted “director” for “commissioner” or “commissioner of taxes”.

§ 4609. Military personnel penalty and interest exemption.

  1. 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.
  2. 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.

HISTORY: Added 1991, No. 110 , § 3, eff. June 28, 1991.

History

Applicability of enactment.

1991, No. 110 , § 5, provided that this section, which was enacted by § 3 of that act, shall take effect on June 28, 1991, and shall apply to taxable years beginning on and after January 1, 1990.

CROSS REFERENCES

Income tax deferral for military personnel called up for combat zone duty, see § 5830d of this title.

Subchapter 2. Collector of Taxes

CROSS REFERENCES

Fees of collectors of taxes, see § 1674 of this title.

Article 1. General Provisions

§ 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.

History

Source.

V.S. 1947, § 914. P.L. § 854. G.L. § 962. P.S. § 684. V.S. § 545. R.L. § 449. G.S. 84, § 62. R.S. 77, § 36. R. 1797, p. 346, § 14.

CROSS REFERENCES

Duty of collector to collect taxes, see 24 V.S.A. § 1528 .

ANNOTATIONS

Illegal taxes.

For noncollection of taxes illegally assessed, neither collector nor sureties on his bond are liable, but they are liable for misapplication or misappropriation of all moneys voluntarily paid to the collector on such taxes. Town of Tunbridge v. Smith, 48 Vt. 648, 1876 Vt. LEXIS 62 (1876).

Collector’s receipt for tax bills, whereby he agrees “to collect and pay over” taxes, is not to be construed to import an absolute agreement on his part to collect and pay over irrespective of the legality of the taxes, but there is, in such case, an implied agreement on part of town that taxes are valid and collectible. Town of Tunbridge v. Smith, 48 Vt. 648, 1876 Vt. LEXIS 62 (1876).

§ 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.

History

Source.

V.S. 1947, § 915. P.L. § 855. 1933, No. 15 , § 797. G.L. § 963. P.S. § 685. V.S. § 546. R.L. § 450. G.S. 84, § 63. R.S. 77, § 37. R. 1797, p. 346, § 14.

ANNOTATIONS

Expenses of indemnification.

Where suits arise against collector in attempting to collect tax upon rate bill furnished him by special committee appointed by district to remove and repair school house, and agent is appointed to defend said suits, district has legal right to raise tax to defray expense thereof. Johnson v. Colburn, 36 Vt. 693, 1864 Vt. LEXIS 34 (1864).

Promise by selectmen.

Selectmen under 24 V.S.A. § 872 , giving them “the general supervision of the affairs of the town,” have control of an invalid tax bill; thus, where plaintiff receiving tax bill as collector advanced and paid into treasury amount of same, and when its illegality was discovered by selectmen they instructed him not to force collections and promised to repay him what he did not collect by voluntary payment, the promise was binding on town. Miles v. Albany, 59 Vt. 79, 7 A. 601, 1886 Vt. LEXIS 11 (1886).

§ 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.

History

Source.

V.S. 1947, § 916. P.L. § 856. 1931, No. 9 , § 1. G.L. § 943. P.S. §§ 671, 672. V.S. §§ 532, 533. R.L. §§ 434, 435. 1880, No. 92 , §§ 1, 2.

§ 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.

HISTORY: Amended 1971, No. 199 (Adj. Sess.), § 17.

History

Source.

V.S. 1947, § 917. P.L. § 857. G.L. § 944. P.S. § 673. V.S. § 534. R.L. § 436. 1880, No. 92 , § 3.

Amendments

—1971 (Adj. Sess.). Deleted “in the state prison” following “imprisoned”.

§ 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.

History

Source.

V.S. 1947, § 918. P.L. § 858. G.L. § 945. P.S. § 674. V.S. § 535. R.L. § 437. 1880, No. 92 , § 4.

Revision note

—2021. Deleted “the preceding” preceding “section” and inserted “4644 of this title” following “section” for clarity.

§ 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.

History

Source.

V.S. 1947, § 842. 1935, No. 32 , § 2.

§ 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.

History

Source.

V.S. 1947, § 921. P.L. § 861. G.L. § 948. P.S. § 677. V.S. § 538. R.L. § 441. 1880, No. 92 , § 8.

ANNOTATIONS

Liability of surety.

Where town collector uses tax collected in one year in paying up arrearages for taxes collected in previous years, without knowledge of town authorities, his sureties are liable for amount so applied. Carpenter v. Town of Corinth, 62 Vt. 111, 22 A. 417, 1889 Vt. LEXIS 121 (1889).

Misapplication of tax.

If money collected on one tax bill is applied by collector on his receipt for another tax bill, it is a misapplication as far as collector is concerned. Town of Tunbridge v. Smith, 48 Vt. 648, 1876 Vt. LEXIS 62 (1876).

Collector and sureties on his bond are liable for the misapplication of all moneys voluntarily paid to the collector on illegal assessments. Town of Tunbridge v. Smith, 48 Vt. 648, 1876 Vt. LEXIS 62 (1876).

Notifying bondsmen.

When tax collector makes payment of taxes collected, and fails to state how they should by applied and treasurer also fails to notify bondsmen that no application has been made, arbitrary application made by treasurer is not conclusive, for money collected and paid to treasurer when bondsmen were sureties should be applied in extinguishment of their liability, unless they consent to different application. Ferrisburg v. Birkett, 60 Vt. 330, 14 A. 88, 1888 Vt. LEXIS 149 (1888).

Article 2. Expiration of Term, Death, Removal, or Disability of Collector

§ 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.

History

Source.

V.S. 1947, § 909. P.L. § 849. 1921, No. 37 , § 1. G.L. § 938. 1917, No. 47 , § 1. 1917, No. 254 , § 907. P.S. §§ 648, 666. V.S. §§ 510, 527. 1888, No. 8 , § 1. R.L. § 428. G.S. 84, § 53. R.S. 77, § 31. R. 1797, p. 345, § 13. R. 1787, p. 128.

§ 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.

History

Source.

V.S. 1947, § 910. P.L. § 850. G.L. § 939. P.S. § 667. V.S. § 528. R.L. § 429. G.S. 84, § 59. R.S. 77, § 35. R. 1797, P. 345, § 13.

§ 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.

History

Source.

V.S. 1947, § 911. P.L. § 851. G.L. § 940. P.S. § 668. V.S. § 529. 1888, No. 8 , § 1. R.L. §§ 403, 430, 431. 1874, No. 13 , § 3. 1864, No. 35 . G.S. 84, §§ 27, 54-57. 1861, No. 13 . 1850, No. 64 , § 1. 1843, No. 14 , § 4.

ANNOTATIONS

Collection under same warrant.

Where defendant was elected collector to fill vacancy January 8, 1863, and rate bill and State Treasurer’s warrant for State tax was dated January 1, 1863, and directed to the former Treasurer, and the same was put into the hands of the defendant January 28, 1863, for collection, the case comes within the provision for collection of taxes by successor by virtue of the same warrant issued to former collector and without any new direction in warrant. Wilson v. Seavey, 38 Vt. 221, 1865 Vt. LEXIS 87 (1865).

Oath of successor.

In action to collect taxes by successor appointed by selectmen, successor must, to prove that successor is the legally qualified collector, show that successor was sworn. Houston v. Russell, 52 Vt. 110, 1879 Vt. LEXIS 154 (1879).

§ 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.

HISTORY: Amended 1963, No. 24 .

History

Source.

V.S. 1947, § 912. P.L. § 852. G.L. § 941. P.S. § 669. V.S. § 530. R.L. § 432. G.S. 84, § 58. 1846, No. 40 .

Amendments

—1963. Deleted requirement that appointment be at request of disabled collector.

ANNOTATIONS

Removal from town.

Where collector has permanently removed from the town, selectmen have authority under this section to appoint a person to collect and pay over to the proper authority all unpaid taxes. Clement v. Hale, 47 Vt. 680, 1874 Vt. LEXIS 123 (1874).

§ 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.

History

Source.

V.S. 1947, § 913. P.L. § 853. G.L. § 942. P.S. § 670. V.S. § 531. R.L. § 433. G.S. 84, § 60. 1859, No. 37 , § 1.

Article 3. Liability for Neglect

History

Editor’s note—

References in §§ 4691-4694 to proceedings before a justice and appeals therefrom appear to be obsolete, since justices of the peace no longer have judicial jurisdiction. See 1973, No. 249 (Adj. Sess.).

§ 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.

HISTORY: Amended 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 899. P.L. § 839. 1919, No. 38 , § 8. G.L. § 928. P.S. § 656. V.S. § 517. R.L. § 417. 1870, No. 44 . G.S. 84, §§ 49, 50. R.S. 77, §§ 27, 28. R. 1797, p. 343, § 12. R. 1787, p. 129.

Editor’s note—

Reference to “justice” in this section probably is obsolete. See note preceding this section.

Amendments

—1977. Substituted “director” for “commissioner”.

ANNOTATIONS

Damages.

Rule of damages in a suit against a collector and his sureties is amount of rate bill not paid over agreeable to warrant. Charlotte v. Webb, 7 Vt. 38, 1835 Vt. LEXIS 6 (1835).

Pleadings.

Written petition is not necessary in proceedings under this section for an extent against a delinquent tax collector. Mt. Holly v. French, 75 Vt. 1, 52 A. 1038, 1902 Vt. LEXIS 83 (1902).

Misdescription of year of grand list, upon which certain tax was alleged to have been laid, in petition by selectmen to justice of the peace for extent against delinquent collector, does not invalidate extent granted thereon, and similar mistake in extent would not invalidate it. Clark v. Lathrop, 33 Vt. 140, 1860 Vt. LEXIS 80 (1860).

§ 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.

History

Source.

V.S. 1947, § 900. P.L. § 840. G.L. § 929. P.S. § 657. V.S. § 518. R.L. § 418. 1880, No. 86 , § 1. 1870, No. 44 . G.S. 84, § 51. R.S. 77, § 29. R. 1797, p. 343, § 12. R. 1787, p. 129.

Editor’s note—

Reference to “justice” in this section probably is obsolete. See note preceding § 4691.

ANNOTATIONS

Constitutionality.

Statute authorizing a justice of the peace to issue an extent against a delinquent collector is constitutional. In re Hackett, 53 Vt. 354, 1881 Vt. LEXIS 7 (1881).

Action on bond.

Issuing of extent against delinquent tax collector without more does not bar town from foreclosing chattel mortgages given by such collector to secure his official bond covering delinquency embraced in the extent; the remedies are consistent. Perry v. Shumway, 73 Vt. 191, 50 A. 1069, 1901 Vt. LEXIS 152 (1901).

In Hartland v. Hackett, 57 Vt. 92, the law of inconsistent remedies is misconceived and misapplied and the doctrine of that case is overruled. Perry v. Shumway, 73 Vt. 191, 50 A. 1069, 1901 Vt. LEXIS 152 (1901).

Prior demand of payment need not be averred in a suit upon constable’s or collector’s official bond, nor that a proceeding has been had to procure an extent against the collector himself, suit upon the bond being a cumulative remedy. Middlebury v. Nixon, 1 Vt. 232, 1828 Vt. LEXIS 18 (1828).

Pleadings.

Misdescription of year of grand list upon which certain tax was alleged to have been laid, in petition by selectmen to a justice of the peace for an extent against a delinquent collector, did not invalidate the extent granted thereon, and similar mistake in the extent would not have invalidated it. Clark v. Lathrop, 33 Vt. 140, 1860 Vt. LEXIS 80 (1860).

Property exempt.

Statute exempting certain property from attachment and execution does not embrace extents against delinquent collectors of town taxes; thus, where sheriff sold on an extent issued against delinquent tax collector, property exempt from execution, the same was not exempt from extent and sheriff was not liable in trespass. Hackett v. Amsden, 56 Vt. 201, 1883 Vt. LEXIS 101 (1883).

§ 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.

HISTORY: Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.

History

Source.

V.S. 1947, § 901. P.L. § 841. G.L. § 930. P.S. § 658. V.S. § 519. R.L. § 419. 1880, No. 86 , § 2.

Revision note—

Reference to “justice” and “to appeal within two hours” in this section probably is obsolete. See note preceding § 4691.

Amendments

—1973 (Adj. Sess.). Changed “county court” to “superior court”.

§ 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.

HISTORY: Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.

History

Source.

V.S. 1947, § 902. P.L. § 842. G.L. § 931. P.S. § 659. V.S. § 520. R.L. §§ 420, 422. 1880, No. 86 , §§ 3, 6.

Editor’s note—

Reference to “justice” and to appeal “within 48 hours” in this section probably is obsolete. See note preceding § 4691.

Amendments

—1973 (Adj. Sess.). Changed “county court” to “superior court”.

§ 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.

HISTORY: Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.

History

Source.

V.S. 1947, § 903. P.L. § 843. G.L. § 932. P.S. § 660. V.S. § 521. R.L. § 421. 1880, No. 86 , § 4.

Amendments

—1973 (Adj. Sess.). Changed “county court” to “superior court”.

§ 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.

History

Source.

V.S. 1947, § 904. P.L. § 844. G.L. § 933. P.S. § 661. V.S. § 522. R.L. § 423. G.S. 84, § 52. R.S. 77, § 30. R. 1797, p. 343, § 12.

§ 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.

History

Source.

V.S. 1947, § 905. P.L. § 845. G.L. § 934. P.S. § 662. V.S. § 523. R.L. § 424. 1880, No. 27 .

§ 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.

History

Source.

V.S. 1947, § 919. P.L. § 859. G.L. § 946. P.S. § 675. V.S. § 536. R.L. § 439. 1880, No. 92 , § 6.

§ 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.

History

Source.

V.S. 1947, § 920. P.L. § 860. G.L. § 947. P.S. § 676. 1906, No. 63 , § 33. V.S. § 537. R.L. § 440. 1880, No. 92 , § 7.

§§ 4700, 4701. Repealed.

History

Former §§ 4700, 4701. Former § 4700, relating to poor debtor’s oath, was repealed because it is now obsolete. § 4700 was derived from V.S. 1947, § 906. P.L. § 846. G.L. § 935. P.S. § 663. 1906, No. 63 , § 33. V.S. § 524. R.L. § 425. 1880, No. 88 , § 1, and amended by 1973, No. 193 (Adj. Sess.), § 3.

Former § 4701, relating to service of petition by poor debtor confined in jail, was repealed because it is now obsolete. § 4701 was derived from V.S. 1947, § 907. P.L. § 847. G.L. § 936. P.S. § 664. V.S. § 525. R.L. § 426. 1880, No. 88 , § 2.

§ 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.

History

Source.

V.S. 1947, § 908. P.L. § 848. G.L. § 937. P.S. § 665. V.S. § 526. R.L. § 427. 1880, No. 89 .

Subchapter 3. Collection of State and County Taxes

CROSS REFERENCES

Inclusion in property tax bills of notice describing current use value appraisal program, see § 3761 of this title.

§ 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.

History

Source.

V.S. 1947, § 812. P.L. § 770. G.L. § 878. P.S. § 607. V.S. § 468. 1882, No. 1 , § 38. 1882, No. 1 27 , § 2. R.L. § 368. 1880, No. 91 , § 1. G.S. 84, § 3. 1860, No. 53 , § 15. R.S. 77, § 3. R. 1797, p. 336, § 3. R. 1787, p. 125.

§ 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.

History

Source.

V.S. 1947, § 548. P.L. § 493. G.L. § 554. P.S. § 386. V.S. § 279. R.L. § 197. G.S. 8, § 14. 1860, No. 53 , § 7.

Revision note—

Word “State” inserted before “treasurer” for clarity.

§ 4733. Repealed. 2003, No. 122 (Adj. Sess.), § 294c.

History

Former § 4733. Former § 4733, relating to abstract of tax warrants, was derived from V.S. 1947, § 540; P.L. § 485; G.L. § 545; 1917, No. 254 , § 533; P.S. § 377; V.S. § 271; R.L. § 189. G.S. 8, § 6; P.S. § 378 and 1906, No. 17 , § 1.

§ 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.

History

Source.

V.S. 1947, § 813. P.L. § 771. G.L. § 879. P.S. § 609. V.S. § 470. R.L. § 372. G.S. 84, § 5. R.S. 77, § 24. R. 1797, p. 318, § 3. 1793, p. 56, § 3.

§ 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.

History

Source.

V.S. 1947, § 894. P.L. § 834. G.L. § 921. P.S. § 649. R. 1906, § 598. V.S. § 511. 1886, No. 1 , § 4. R.L. § 411. 1880, No. 91 , § 5. 1874, No. 60 . 1863, No. 19 . G.S. 84, § 41. R.S. 77, § 15. R. 1797, p. 340, § 10. R. 1787, p. 127, § 4.

ANNOTATIONS

Evidence.

Extent issued by Treasurer of the State against inhabitants of town, which has been paid by them, is admissible in evidence, without showing previous proceedings of the Treasurer. Charlotte v. Webb, 7 Vt. 38, 1835 Vt. LEXIS 6 (1835).

§ 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.

History

Source.

V.S. 1947, § 895. P.L. § 835. G.L. § 923. P.S. § 651. V.S. § 512. R.L. § 412. 1880, No. 91 , § 6. G.S. 84, § 44. G.S. § 11. R.S. 77, § 18.

Revision note—

Reference to “an action of contract” changed to “a civil action” pursuant to V.R.C.P. 2 and 81(c) and 1971, No. 185 (Adj. Sess.), § 236(d).

Words “on this statute” changed to “under this section” in the interest of clarity.

§ 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.

History

Source.

V.S. 1947, § 896. P.L. § 836. G.L. § 924. P.S. § 652. R. 1906, § 601. V.S. § 513. R.L. § 413. G.S. 84, § 45. R.S. 77, § 21. R. 1797, p. 340, § 11. R. 1787, p. 127.

ANNOTATIONS

Action at law.

Though State Treasurer has right to issue an extent against a sheriff for neglect in levying and returning an extent against a delinquent constable, he is not thereby deprived of his remedy by action at law for the same neglect. State Treasurer v. Kelsey, 4 Vt. 371, 1832 Vt. LEXIS 48 (1832).

If Treasurer brings action for neglect and recovers judgment therefor, sheriff’s bail are liable in scire facias for amount of judgment, and cannot plead in bar thereof the delay or neglect of the Treasurer to issue an extent against such sheriff, or that the Treasurer’s extent against the delinquent constable was not seasonably issued. State Treasurer v. Kelsey, 4 Vt. 371, 1832 Vt. LEXIS 48 (1832).

Direction of extent.

When sheriff who has neglected to execute an extent is out of office, the extent against him may be directed to and served by the sheriff who is in office at the time, and need not be directed to the high bailiff. State Treasurer v. Weeks, 4 Vt. 215, 1832 Vt. LEXIS 25 (1832).

More than one neglect.

When sheriff neglected to execute two extents against different constables, State Treasurer may issue one extent against such sheriff for both neglects. State Treasurer v. Weeks, 4 Vt. 215, 1832 Vt. LEXIS 25 (1832).

Pleadings.

Declaration alleging that Treasurer issued his extent in due form of law, bearing date, etc., is sufficient, without averring it to be signed by him where the objection was not raised by special demurrer. State Treasurer v. Weeks, 4 Vt. 215, 1832 Vt. LEXIS 25 (1832).

Venue.

Neglect of sheriff in not serving and returning an extent issued by State Treasurer against delinquent constable, is a neglect happening in county where Treasurer resides, though it be a different county from that in which sheriff officiates. State Treasurer v. Kelsey, 4 Vt. 371, 1832 Vt. LEXIS 48 (1832).

§ 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.

History

Source.

V.S. 1947, § 897. P.L. § 837. G.L. § 925. P.S. § 653. V.S. § 514. R.L. § 414. G.S. 84, § 46. R.S. 77, § 22. R. 1797, p. 341, § 11. R. 1787, p. 127.

§ 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.

History

Source.

V.S. 1947, § 898. P.L. § 838. G.L. § 927. P.S. § 655. V.S. § 516. R.L. § 416. G.S. 84, § 48. R.S. 77, § 20. R. 1797, p. 341, § 11. R. 1787, p. 128.

Subchapter 4. Collection of Town and Other Taxes

CROSS REFERENCES

Inclusion in property tax bills of notice describing current use value appraisal program, see § 3761 of this title.

Article 1. General Provisions

§ 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.

HISTORY: Amended 1973, No. 249 (Adj. Sess.), § 99, eff. April 9, 1974.

History

Source.

V.S. 1947, § 814. P.L. § 772. G.L. § 880. P.S. § 610. V.S. § 471. R.L. § 373. G.S. 84, §§ 6, 7. R.S. 77, §§ 25, 26. R. 1797, p. 343, § 12. R. 1787, p. 129.

Amendments

—1973 (Adj. Sess.). Substituted “district judge” for “justice”.

§ 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.

HISTORY: Amended 1993, No. 68 , § 2.

History

Source.

Subsec. (a): V.S. 1947, § 815. P.L. § 773. 1933 S., No. 2, § 1. G.L. § 881. P.S. § 611. V.S. § 472. R.L. § 374. G.S. 84, § 8. R.S. 77, § 4. 1831, No. 35 , § 1. R. 1797, p. 336, § 3. R. 1787, p. 125.

Subsec. (b): V.S. 1947, § 838. 1935, No. 31 , § 1. P.L. § 784. 1933, S., No. 2, § 4. G.L. § 4139. 1917, No. 254 , § 4073. P.S. § 3611. V.S. § 3081. V.S. § 3081. R.L. § 2747. 1866, No. 45 .

Amendments

—1993. Section amended generally.

ANNOTATIONS

Endorsement of time of receipt.

Omission by defendant to enter upon warrant the true day and year when he received same was not sufficient to invalidate his proceedings under it, and this may be shown by other evidence. Goodwin v. Perkins, 39 Vt. 598, 1867 Vt. LEXIS 46 (1867).

Necessity of notice.

To make unpaid tax “delinquent,” collector must give notice to taxpayer of time and place when and where he will be to receive tax. Brattleboro v. Carpenter, 104 Vt. 158, 158 A. 73, 1932 Vt. LEXIS 132 (1932).

Notice to taxpayer required under this section or § 4792 of this title when town elects to proceed by warrant, is equally essential when collection of tax is by a suit at law under §§ 5221-5226 of this title. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

All cases in this State hold that notice to resident taxpayers of the time and place when and where the collector will be to receive the tax is an essential part of the duty of the collector, and that no valid sale can be made without it, unless excused by a demand and unequivocal refusal to pay. Brush v. Watson, 81 Vt. 43, 69 A. 141, 1908 Vt. LEXIS 115 (1908).

Power to give notice.

Collector has no authority under this section to give taxpayer notice of tax standing against him until the tax bill is placed in his hands for collection. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

Refusal to pay tax.

Absolute refusal to pay tax justifies collector in proceeding to collect it, without giving notice where he will receive it. Hurlburt v. Green, 42 Vt. 316, 1869 Vt. LEXIS 83 (1869); Downer v. Woodbury, 19 Vt. 329, 1847 Vt. LEXIS 37 (1847); Wheelock v. Archer, 26 Vt. 380, 1854 Vt. LEXIS 26 (1854).

Types of notice.

Where official who collects poll tax uses penalty of suspension of operator’s license as sanction against those failing to pay the tax, due process requires personal notice of the tax in writing to those risking license suspension. Aiken v. Malloy, 132 Vt. 200, 315 A.2d 488, 1974 Vt. LEXIS 324 (1974).

§ 4773. Date and method of payment; discount.

  1. 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.
  2. 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.

HISTORY: Amended 2003, No. 100 (Adj. Sess.), § 2.

History

Source.

V.S. 1947, § 837. P.L. § 783. 1933, No. 18 , § 3. G.L. § 4138. 1917, No. 254 , § 4072. P.S. § 3610. 1906, No. 96 , § 1. 1904, No. 28 , § 1. V.S. § 3080. R.L. § 2747. 1866, No. 45 .

Amendments

—2003 (Adj. Sess.). Subsec. (a): Added the “(a)” designation and amended generally.

Subsec. (b): Added.

2003 (Adj. Sess.). 2003, No. 100 (Adj. Sess.), § 5, eff. April 28, 2004, provided: “This act [which amends this section, and sections 1674 and 5137 of this title, and section 1530 of Title 24], shall take effect for the collection of taxes assessed on or after April 1, 2005.”

§ 4774. Discount allowed.

  1. 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.
    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: (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:
      1. the payment made was equal to the taxes due without regard to the discount under section 4773 of this title; and
      2. 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.

HISTORY: Amended 1987, No. 13 ; 2007, No. 121 (Adj. Sess.), § 30.

History

Source.

1957, No. 132 , § 1. V.S. 1947, § 841. 1935, No. 32 , § 1. P.L. § 787. 1933 S., No. 2, § 3. 1933, No. 18 , § 2. G.L. § 891. P.S. § 621. 1898, No. 18 , §§ 1, 2. V.S. § 482. 1888, No. 7 , § 2. R.L. § 384. 1880, No. 90 , § 3.

Amendments

—2007 (Adj. Sess.) Subsec. (b): Designated the introductory paragraph as present subdiv. (1), redesignated former subdivs. (1) and (2) as subdivs. (A) and (B), substituted “$10.00” for “$2.00” in (B), and designated the concluding paragraph as present subdiv. (2).

—1987. Designated the existing provisions of the section as subsec. (a) and added subsec. (b).

ANNOTATIONS

Cited.

Cited in Rooney Vermont Associates v. Town of Pownal, 140 Vt. 150, 436 A.2d 733, 1981 Vt. LEXIS 574 (1981).

Article 2. Collection by Treasurer

§ 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.

History

Source.

V.S. 1947, § 839. P.L. § 785. 1933, No. 157 , § 720. G.L. § 889. 1917, No. 254 , § 857. P.S. § 619. 1896, No. 15 , § 1. V.S. § 480. 1888, No. 7 , § 1. 1886, No. 5 , § 1. R.L. §§ 382, 388. 1880, No. 90 , §§ 1, 7.

ANNOTATIONS

Certification by selectmen.

Tax bill delivered to treasurer in accordance with this section need not be certified by the selectmen, and what it is may be shown by parol. Wilmot v. Lathrop, 67 Vt. 671, 32 A. 861, 1895 Vt. LEXIS 99 (1895).

Under St. 1886, No. 5 , towns must vote each year to collect their taxes through the treasurer, and in case of a town not so voting its treasurer has no authority to issue warrant for the collection of a delinquent tax. Waite v. Hyde Park Lumber Co., 65 Vt. 103, 25 A. 1089, 1892 Vt. LEXIS 9 (1892).

Liability of treasurer.

Where municipality collects its taxes through its treasurer, such treasurer, in the absence of any breach of duty on his part, is chargeable only with money treasurer has actually received. Town of Brookfield v. Bigelow, 80 Vt. 428, 68 A. 656, 1908 Vt. LEXIS 88 (1908).

Payments to treasurer.

Payments of taxes to the treasurer are voluntary, and treasurer receives such payments merely as treasurer receives money of the town from any other source. Town of Brookfield v. Bigelow, 80 Vt. 428, 68 A. 656, 1908 Vt. LEXIS 88 (1908).

Warrant.

There is no requirement that selectmen attach warrant to tax bill which they make out and furnish to treasurer, provisions of 24 V.S.A. § 1521 , requiring selectmen to attach “proper” warrants to tax bills, referring only to those which they deliver to collector of taxes. Federal Land Bank v. Flanders, 105 Vt. 204, 164 A. 539, 1933 Vt. LEXIS 204 (1933).

§ 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.

HISTORY: Amended 1987, No. 53 , eff. May 15, 1987; 1993, No. 68 , § 3.

History

Source.

V.S. 1947, § 840. 1935, No. 31 , § 2. P.L. § 786. 1933, No. 18 , § 1. 1933, No. 157 , § 721. G.L. § 890. P.S. § 620. 1906, No. 34 , § 1. V.S. § 481. R.L. § 383. 1880, No. 90 , § 2.

Amendments

—1993. Section amended generally.

—1987. Deleted “nor more than ninety days” preceding “and the treasurer” and inserted “or her” following “his” in two places and following “him” in the second sentence.

ANNOTATIONS

Adequacy of notice.

This section, which requires town treasurer to post public notices announcing due date for taxes and to mail notices to each taxpayer, does not specify the time limit for mailing actual notice of taxes due. Rooney Vermont Associates v. Town of Pownal, 140 Vt. 150, 436 A.2d 733, 1981 Vt. LEXIS 574 (1981).

While this section, which requires treasurer to post public notices announcing due date for taxes not less than 30 days nor more than 90 days before due date for taxes and requires treasurer to mail notice to each taxpayer, was enacted by the Legislature to protect the taxpayer, substantial, rather than absolute, compliance with the provisions of the section is sufficient. Rooney Vermont Associates v. Town of Pownal, 140 Vt. 150, 436 A.2d 733, 1981 Vt. LEXIS 574 (1981).

Where town treasurer posted delinquent tax notices 96 days in advance of the due date for taxes instead of the 90 days required by this section, with result that notices were not posted so far in advance that it would be unreasonable to expect someone to remember the due date, and where no evidence was presented that notices were not also still posted 90 days before due date, failure to strictly follow provisions of this section did not bar collection of interest and penalty for late payment of taxes. Rooney Vermont Associates v. Town of Pownal, 140 Vt. 150, 436 A.2d 733, 1981 Vt. LEXIS 574 (1981).

Necessity for notice.

Notice to taxpayer required under this section, when town elects to proceed by warrant, is essential when collection of tax is by a suit at law under §§ 5221-5226 of this title. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

Where delinquent tax bills were turned over to collector and collector demanded payment thereof but made no further effort to collect them, town did not give required notice and hence could not proceed to collect under §§ 5221-5226 of this title, where it did not appear that collector’s demand was met by such refusal as would obviate necessity for notice. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

Requirement that town treasurer on receipt of a tax bill post notices in at least three public places, and publish the same for one week in the public newspapers of the town, “calling upon the taxpayers to pay their respective taxes within ninety days from the date of such notices,” is a prerequisite to such treasurer’s authority to issue a warrant under § 4793 of this title, providing that at the expiration of such ninety days the treasurer shall issue a warrant against delinquent taxpayers for the amount of taxes remaining unpaid, and deliver the same to the collector of taxes. Smith v. Stannard, 81 Vt. 319, 70 A. 568, 1908 Vt. LEXIS 151 (1908).

Power to give notice.

Treasurer has no authority under this section to give taxpayer notice of tax standing against taxpayer, until the tax bill is placed in taxpayer’s hands for collection. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

§ 4793. Warrant against delinquents.

  1. 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.
  2. 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.

HISTORY: Amended 1997, No. 26 , § 2.

History

Source.

1957, No. 132 , § 1. V.S. 1947, § 841. 1935, No. 32 , § 1. P.L. § 787. 1933, S., No. 2, § 3. 1933, No. 18 , § 2. G.L. § 891. P.S. § 621. 1898, No. 18 , §§ 1, 2. V.S. § 482. 1888, No. 7 , § 2. R.L. § 384. 1880, No. 90 , § 3.

Revision note—

Former first sentence of this section concerning discounts was deleted as covered by § 4774 of this title.

Amendments

—1997. Designated the existing text of the section as subsec. (a) and substituted “15 days” for “twenty days” and “a” for “his” following “shall issue” in the first sentence of that subsection and added subsec. (b).

ANNOTATIONS

Liability of treasurer.

Where checks were tendered for payment of taxes after warrant for delinquent taxes had been delivered to collector and tax collector had mailed delinquent tax notices, town treasurer could not accept the checks because the warrant for collection had been forwarded to the tax collector, and the whole responsibility for collection rested with the latter. Rooney Vermont Associates v. Town of Pownal, 140 Vt. 150, 436 A.2d 733, 1981 Vt. LEXIS 574 (1981).

After treasurer delivers delinquent tax bills to collector, the whole responsibility of collecting rests on latter; and the only duty in the premises thereafter devolving on the treasurer is to receive and account for any money paid him by the collector. Town of Brookfield v. Bigelow, 80 Vt. 428, 68 A. 656, 1908 Vt. LEXIS 88 (1908).

Under this system, payments of taxes to the treasurer are voluntary, and treasurer receives such payments merely as treasurer receives money of town from any other source. Town of Brookfield v. Bigelow, 80 Vt. 428, 68 A. 656, 1908 Vt. LEXIS 88 (1908).

Notes to Opinions

Construction with other laws.

As between this section and § 4874 of this title, the latter controls as to installment collection of taxes. 1954-56 Vt. Op. Att'y Gen. 191.

§ 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.

History

Source.

V.S. 1947, § 847. P.L. § 789. G.L. § 892. 1910, No. 49 , § 1.

§ 4795. Repealed. 1993, No. 68, § 5.

History

Former § 4795. Former § 4795, relating to notice to nonresidents, was derived from V.S. 1947, § 849; 1935, No. 31 , § 3; P.L. § 791; G.L. § 895; P.S. § 624; V.S. § 486; R.L. § 387; and 1880, No. 90 , § 6.

§ 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.

HISTORY: Amended 1993, No. 68 , § 4.

History

Source.

V.S. 1947, § 848. P.L. § 790. G.L. § 894. P.S. § 623. 1898, No. 18 , § 1. V.S. § 485. R.L. § 386. 1880, No. 90 , § 5.

Amendments

—1993. Inserted “or her” following “his” and substituted “thirty” for “ninety” preceding “days” in the first sentence and inserted “or she” preceding “is allowed” in the second sentence.

ANNOTATIONS

Return of warrant.

A treasurer’s warrant for collection of taxes under this section is returnable to treasurer who issued it, and treasurer alone can allow an amendment of officer’s return thereon, and treasurer may allow almost any amendment in accordance with the facts and at almost any time, so that it does not affect rights already acquired upon the strength of the return, and when amended the return is prima facie evidence for the officer making it. Taylor v. Moore, 63 Vt. 60, 21 A. 919, 1890 Vt. LEXIS 53 (1890).

§ 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.

History

Source.

V.S. 1947, § 740. P.L. § 695. G.L. § 805. 1910, No. 47 , § 18.

§ 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.

History

Source.

V.S. 1947, § 741. P.L. § 696. G.L. § 806. 1910, No. 47 , § 19.

§ 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.

HISTORY: Added 1977, No. 30 .

Article 3. Disputes as to Tax Jurisdiction

§ 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.

History

Source.

V.S. 1947, § 930. P.L. § 870. G.L. § 964. 1917, No. 254 , § 933. 1915, No. 49 , § 1. 1912, No. 47 , § 1.

Revision note—

Reference to “an action of contract” changed to “a civil action” pursuant to V.R.C.P. 2 and 81(c) and 1971, No. 185 (Adj. Sess.), § 236(d).

Words “on this statute” changed to “under this section” in interest of clarity.

ANNOTATIONS

Equitable relief.

Payment of taxes under protest as provided by this section would not afford relief, precluding relief in equity, to landowners being taxed on their land by each of two towns due to boundary dispute, where landowners would have to bring two separate suits in different counties and a decision in an action against one town for recovery of taxes paid under protest would not be res judicata against the other town regardless of the outcome as both towns could not be made a party to the same suit, and the outcome would thus not necessarily resolve the situation and landowners would be compelled to speculate upon their chance of gaining relief at law when equity could grant relief, and to undergo protracted and expensive litigation with the burden of proof on them rather than the towns, where it rightfully and equitably rested. Poulin v. Town of Danville, 128 Vt. 161, 260 A.2d 208, 1969 Vt. LEXIS 219 (1969).

§ 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.

History

Source.

V.S. 1947, § 931. P.L. § 871. G.L. § 965. 1915, No. 49 , § 2. 1912, No. 47 , § 2.

Article 4. Collection of Taxes of Nonresidents

§ 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.

History

Source.

V.S. 1947, § 882. P.L. § 822. G.L. § 913. P.S. § 641. V.S. § 503. R.L. § 404. 1870, No. 43 .

§ 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.

History

Source.

V.S. 1947, § 883. P.L. § 823. G.L. § 914. P.S. § 642. V.S. § 504. R.L. § 405. G.S. 84, §§ 38, 39. 1859, No. 36 , §§ 1, 2.

ANNOTATIONS

Necessity of notice.

In provision that collector may notify a nonresident taxpayer of the tax due by a letter containing a statement of the amount of such tax and where the collector will receive payment thereof, the word “may” means “must” and without such notice collector can make no valid sale of nonresident’s real estate unless, on demand, latter unequivocably refuses to pay tax. Brush v. Watson, 81 Vt. 43, 69 A. 141, 1908 Vt. LEXIS 115 (1908).

§ 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.

History

Source.

V.S. 1947, § 884. P.L. § 824. G.L. § 915. P.S. § 643. V.S. § 505. R.L. § 406. G.S. 84, § 45. 1859, No. 36 , § 3.

Revision note—

Added “under section 4842 of this title” following “notified” in the interest of clarity.

CROSS REFERENCES

Fees of collectors of taxes generally, see § 1674 of this title.

Article 5. Installment Payment of Taxes

§ 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?”

History

Source.

V.S. 1947, § 851. P.L. § 792. 1933, No. 21 , § 1.

Notifying commissioner of vote to adopt installment provisions, prior law. V.S. 1947, § 858, derived from P.L. § 799; 1933, No. 21 , § 8, was repealed by 1951, No. 20 .

§ 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.

HISTORY: Amended 1959, No. 22 , eff. March 6, 1959; 1973, No. 203 (Adj. Sess.), eff. April 3, 1974; 1993, No. 68 , § 6.

History

Source.

V.S. 1947, § 852. 1937, No. 24 , § 1. 1937, No. 25 , § 1. P.L. § 793. 1933, No. 21 , § 2.

Revision note—

At beginning of first sentence added “to collect taxes on real and personal property in installments” following “voting” in interest of clarity.

Amendments

—1993. Deleted the former second sentence and deleted “at his option” preceding “may anticipate” in the fourth sentence.

—1973 (Adj. Sess.). Added exception for budget of 16 months or more and up to 6 installment collections on transitional budget.

—1959. Deleted the four dates on which installments could be made due.

Construction and intent of 1993 amendment. 1993, No. 68 , § 7, provided that no change in meaning was intended by the second deletion in § 6 of the act, which deleted “at his option” preceding “may anticipate” in the fourth sentence of this section, and that the change was made in order to make the language gender neutral.

§ 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 853. 1939, No. 24 . P.L. § 794. 1933, No. 21 , § 3.

Amendments

—1981 (Adj. Sess.). Inserted “for the first three months and thereafter one and one-half percent per month or fraction thereof” preceding “either from the due date of the last installment” in the first sentence.

—1973 (Adj. Sess.). Increased rate of interest.

—1963. Added last sentence relating to rescission.

§ 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.

HISTORY: Amended 1983, No. 131 (Adj. Sess.), § 1; 1997, No. 26 , § 3.

History

Source.

1957, No. 132 , § 2. V.S. 1947, § 854. P.L. § 795. 1933, No. 21 , § 4.

Amendments

—1997. Substituted “15 days” for “twenty days” and inserted “or within the time determined by the voters under section 4793 of this title” following “installment” in the first sentence, and substituted “the” for “his” preceding “unpaid taxes” in the second sentence.

—1983 (Adj. Sess.) Deleted “for which list the treasurer shall receive five cents per name to be added to the unpaid tax” following “delinquent” at the end of the first sentence.

Notes to Opinions

Construction with other laws.

As between this section and § 4793 of this title, the former controls as to installment collection of taxes. 1956-68 Vt. Op. Att'y Gen. 228.

Failure to pay installment.

Under this section, failure to pay installment when due does not thereby cause entire amount of tax due for year to become delinquent. 1956-58 Vt. Op. Att'y Gen. 228.

Notice required.

Under installment plan of tax payment there can be no delinquency until collector’s notice is given pursuant to this section. 1956-58 Vt. Op. Att'y Gen. 228.

§ 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.

History

Source.

V.S. 1947, § 855. P.L. § 796. 1933, No. 21 , § 5.

Revision note—

Reference to “an action of contract” changed to “a civil action” pursuant to V.R.C.P. 2 and 81(c); and 1971, No. 185 (Adj. Sess.), § 236(d).

§ 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.

HISTORY: Amended 1977, No. 118 (Adj. Sess.), § 3, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978.

History

Source.

V.S. 1947, § 856. 1935, No. 30 , § 2. P.L. § 797. 1933, No. 21 , § 6.

Revision note

—2013. Deleted “except poll taxes,” preceding “shall be collected” pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Amendments

—1977 (Adj. Sess.). Deleted reference to old age assistance taxes.

§ 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.

History

Source.

V.S. 1947, § 857. P.L. § 798. 1933, No. 21 , § 7.

§ 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.

History

Source.

V.S. 1947, § 859. P.L. § 800. 1933, No. 21 , § 9.

Article 6. Forms

§ 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.

History

Source.

V.S. 1947, § 10,610, opening paragraph.

§ 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.

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History

Source.

V.S. 1947, § 10,610, Form 36. P.L. § 9111, Form 36. G.L. § 7472, Form 36. P.S. § 6266, Form 35. R. 1906, § 6130, Form 35. V.S. § 5417, Form 33. R.L. § 4550, Form 25. 1863, No. 10 , § 1. G.S. 127, Form 24. R.S. 108, Form 23. R. 1797, p. 535.

Revision note—

Word “justice” in the section heading was changed to “district judge” and “Justice of the Peace” at end of form was changed to “District Judge” because justices of the peace no longer have judicial jurisdiction and district judges are authorized to issue a warrant to collect taxes other than State and county taxes. See 1973, No. 249 (Adj. Sess.) and § 4771 of this title.

ANNOTATIONS

Date of warrant.

Error in date of warrant apparent on its face would not render it invalid. Bellows v. Weeks, 41 Vt. 590, 1869 Vt. LEXIS 13 (1869).

Direction of warrant.

Omission of name of constable or collector in direction does not render warrant void; nor would insertion of name of person deceased vitiate warrant. Wilson v. Seavey, 38 Vt. 221, 1865 Vt. LEXIS 87 (1865).

Direction in tax warrant to collector to pay over tax, when collected, to selectmen instead of Treasurer, will not make it invalid. Clemons v. Lewis, 36 Vt. 673, 1864 Vt. LEXIS 28 (1864).

Issuance of warrant.

Justice of the peace, who is also one of the board of selectmen, may issue a warrant to collect a tax which, when collected, is to be paid to the board of selectmen to which justice of the peace belongs. Alger v. Curry, 40 Vt. 437, 1868 Vt. LEXIS 29 (1868).

Return of warrant.

Omission by tax collector, who commits delinquent to jail for nonpayment of tax, to certify doings on copy of warrant left with the jailor cannot be supplied by parol proof of proceedings, for the original warrant not being a returnable process, a certificate of collector thereon is not so far in the nature of a return as to be conclusive upon parties. Flint v. Whitney, 28 Vt. 680, 1856 Vt. LEXIS 100 (1856).

Sale pursuant to warrant.

Collector, acting in good faith and with due regard to rights of parties, may sell property en masse instead of selling by the parcel or by the unit enough to bring required amount, returning balance above tax and costs to person whose property is distrained; and if collector misapplies a part of balance in payment of interest, collector does not thereby become a trespasser, for wrong is not to property itself. Hughes v. Kelley, 69 Vt. 443, 38 A. 91, 1897 Vt. LEXIS 80 (1897).

§ 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

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HISTORY: Amended 1983, No. 131 (Adj. Sess.), § 2.

History

Source.

V.S. 1947, § 10,610, Form 37. P.L. § 9111, Form 37. G.L. § 7472, Form 37. P.S. § 6266, Form 36. R. 1906, § 6130, Form 36. V.S. § 5417, Form 34. 1894, No. 162 , § 4247, Form 34.

Amendments

—1983 (Adj. Sess.). Deleted “and five cents added to each such sum for this warrant” following “respectively”.

§ 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.

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HISTORY: Amended 1973, No. 193 (Adj. Sess.), § 3.

History

Source.

V.S. 1947, § 10,610, Form 38. P.L. § 9111, Form 38. G.L. § 7472, Form 38. 1917, No. 254 , § 7244, Form 38. P.S. § 6266, Form 37. V.S. § 5417, Form 35. R.L. § 4550, Form 18. 1872, No. 77 , § 3.

Revision note

—2013. Deleted “except poll taxes,” preceding “shall be collected” pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Amendments

—1973. (Adj. Sess.). “Superior Judge” substituted for “County Court” at end of form.

Subchapter 5. Assessment and Collection in Unorganized Towns and Gores

History

Revision note

—2007. Changed “unorganized” to “unified” pursuant to 2005, No. 105 (Adj. Sess.), § 1.

Amendments

—2011 (Adj. Sess.). 2011, No. 143 (Adj. Sess.), § 36, eff. May 15, 2012, substituted “Unorganized” for “Unified” preceding “Towns” in the subchapter heading.

CROSS REFERENCES

Unorganized towns and gores generally, see 24 V.S.A. chapter 43.

§ 4961. Assessment of tax.

  1. 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.
  2. 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.
  3. 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.

HISTORY: 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.

History

Source.

1955, No. 238 . V.S. 1947, § 922. P.L. § 862. 1927, No. 18 , § 1. 1921, No. 39 . 1919, No. 40 . G.L. § 949. 1917, No. 48 , § 1. 1917, No. 254 , § 918. 1912, No. 42 , § 1.

Amendments

—2011. Subsec. (c): Deleted “and tax rate” following “budget” in two places in the third sentence.

—2009. Subsec. (a): Substituted “and upon” for “A state tax of $0.50 is hereby annually assessed on” following “Chittenden County”.

Subsec. (c): Added.

—2003. Subsec. (b): Substituted “August 1” for “June 1” and “September 10” for “July 10”.

—1999. Subsec. (a): Substituted “$0.50 is hereby annually assessed” for “fifty cents” following “tax of” and deleted “for the purposes hereinafter provided shall be the only tax assessed or levied thereon, except the county tax” following “of Windham” at the end of the second sentence.

—1997. Subsec. (b): Deleted “a” preceding “proposed tax” and substituted “rates” for “rate” thereafter in the fifth sentence.

—1995. Subsec. (b): Substituted “rates” for “rate” following “tax” in the first, fourth and fifth sentences.

—1987. Section amended generally.

—1977 (Adj. Sess.) Section amended generally.

Pursuant to 1967, No. 331 (Adj. Sess.), § 5, eff. Jan. 1, 1969, this section, and §§ 4962, 4963, 4965-4968 of this title, no longer apply to the unorganized [now unified] towns and gores in Essex county, or to the supervisor or appraisers for those unorganized [now unified] towns and gores.

Termination of 1995 amendment. 1995, No. 63 , § 48h, provided for the termination of the amendment to this section by § 48f of that act on June 30, 1996.

§ 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.

HISTORY: Amended 1997, No. 50 , § 11, eff. June 26, 1997.

History

Source.

V.S. 1947, § 923. 1939, No. 19 , § 2. P.L. § 863. G.L. § 950. 1912, No. 42 , § 8.

Revision note—

Deleted “except poll taxes,” preceding “shall be collected” and “polls and” preceding “taxable property” pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Amendments

—1997. Substituted “director” for “commissioner of taxes” in the first sentence and for “commissioner” in the fourth sentence and inserted “issue a” preceding “receipt” in that same sentence.

For applicability of this section to unorganized [now unified] towns and gores in Essex county, see note set out under § 4961 of this title.

§ 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.

HISTORY: Amended 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 924. 1943, No. 21 , § 17. P.L. § 864. G.L. § 951. 1912, No. 42 , § 23.

Amendments

—1977. Substituted “director” for “commissioner”.

For applicability of this section to unorganized [now unified] towns and gores in Essex county, see note set out under § 4961 of this title.

§ 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.

History

Source.

V.S. 1947, § 925. P.L. § 865. G.L. § 954. 1915, No. 32 , § 4. 1912, No. 42 , § 16. P.S. § 589. V.S. § 450. R.L. § 357.

§ 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.

HISTORY: Amended 1959, No. 238 (Adj. Sess.), § 8(a), (b); 1971, No. 73 , § 11, eff. April 16, 1971; 1983, No. 195 (Adj. Sess.), § 5(b).

History

Source.

V.S. 1947, § 926. P.L. § 866. G.L. § 955. 1917, No. 48 , §§ 1, 4. 1912, No. 42 , §§ 27, 29. P.S. §§ 608, 679. V.S. §§ 469, 540. 1882, No. 8 , § 1. R.L. §§ 370, 443. 1880, No. 91 , § 3. 1865, No. 21 , § 5. 1862, No. 18 , § 3.

References in text.

§ 4303 of this title, referred to in this section, was repealed by 1999, No. 49 , § 6(b), effective June 2, 1999.

Revision note—

References to “finance director” were changed to “commissioner of finance” to conform references to new title and reorganization of State government. See 3 V.S.A. chapter 45.

References to “commissioner of finance and information support” changed to “commissioner of finance and management” in light of Executive Order No. 35-87, dated Aug. 6, 1987, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of the commissioner of that entity to the commissioner of the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

Amendments

—1983 (Adj. Sess.). Added “and information support” following “commissioner of finance”.

—1971. Added “equalized” before “grand list”.

—1959 (Adj. Sess.). Substituted “finance director” for “auditor of accounts”.

For applicability of this section to unorganized [now unified] towns and gores in Essex county, see note set out under § 4961 of this title.

§ 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.

History

Source.

V.S. 1947, § 927. P.L. § 867. G.L. § 956. 1917, No. 254 , § 925. 1912, No. 42 , § 24. P.S. § 680. V.S. § 541. R.L. § 444. 1865, No. 21 , §§ 6, 7. 1862, No. 18 , § 4.

For applicability of this section to unorganized [now unified] towns and gores in Essex county, see note set out under § 4961 of this title.

§ 4967. Transmission of taxes and credit to special fund.

  1. 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.
  2. 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.

HISTORY: Amended 1977, No. 105 , § 14(a); 2011, No. 162 (Adj. Sess.), § E.142.1.

History

Source.

V.S. 1947, § 928. 1943, No. 21 , § 18. P.L. § 868. G.L. § 957. 1917, No. 48 , § 6. 1915, No. 32 , § 6. 1912, No. 42 , § 35.

Amendments

—2011 (Adj. Sess.). Subsec. (a): Added the subsec. designation; deleted “except fees” following “duties” and substituted “department of finance and management to be credited to special fund accounts, which are hereby established” for “director quarterly, on the first Tuesday in February, May, August, and November. Such director shall keep separate accounts of the moneys so received by him or her from the respective supervisors”.

Subsec. (b): Added.

—1977. Substituted “director” for “commissioner” or “commissioner of taxes”.

For applicability of this section to unorganized [now unified] towns and gores in Essex county, see note set out under § 4961 of this title.

§ 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.

History

Source.

V.S. 1947, § 929. 1947, No. 44 , § 1. P.L. § 869. G.L. § 960. 1912, No. 42 , § 25. P.S. § 681, 682. V.S. §§ 542, 543. R.L. §§ 445, 446. 1865, No. 21 , §§ 6, 7, 8. 1862, No. 18 , § 4.

For applicability of this section to unorganized [now unified] towns and gores in Essex county, see note set out under § 4961 of this title.

§ 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.

HISTORY: Added 1977, No. 150 (Adj. Sess.), § 2.

Subchapter 6. Assessment and Collection in Unified Towns and Gores of Essex County

History

Amendments

—2005 (Adj. Sess.). 2005, No. 105 (Adj. Sess.), § 1, substituted “unified towns and gores of Essex County” for “unorganized towns and gores of Essex County” in the subchapter heading.

CROSS REFERENCES

Unorganized towns and gores generally, see 24 V.S.A. chapter 43.

§ 4981. Assessment of tax.

  1. A tax determined pursuant to this section is hereby annually assessed upon the grand list of the unified towns and gores in Essex County.
  2. 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.
  3. 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.
  4. 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.

HISTORY: 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.

History

Amendments

—2017 (Adj. Sess.). Subsec. (b): Substituted “September” for “August” in the second sentence and redesignated the former third through fifth sentences as subsecs. (c) and (d).

—2005 (Adj. Sess.). Pursuant to Act No. 105, § 1, substituted “unified” for “unorganized” preceding “towns and gores in Essex County” throughout the section.

—1999 (Adj. Sess.). Section amended generally.

—1977 (Adj. Sess.). Reduced rate of tax from six to three dollars.

—1973. Section amended generally.

1999 (Adj. Sess.). 1999, No. 139 (Adj. Sess.), § 5, eff. May 18, 2000, provided that the amendment to this section by § 1 of that act shall apply to grand lists for April 1, 2000 or after.

ANNOTATIONS

Construction.

The plain language of former 32 V.S.A. § 4983 demonstrated the Legislature’s intent to create a fiscal system in which the receipts and expenses for each year would be netted out at the close of each year, and any surplus of revenues over expenses would be paid over to the organized towns no later than July of the ensuing year. Accordingly, the Superior Court properly ordered distribution of money that had accumulated in a savings account to the 13 organized towns of Essex County. Town of Lunenburg v. Supervisor and Board of Governors of the Unorganized Towns and Gores of Essex County, 2006 VT 71, 180 Vt. 578, 908 A.2d 424, 2006 Vt. LEXIS 168 (2006) (mem.).

§ 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.

HISTORY: 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.

History

Amendments

—2005 (Adj. Sess.). Pursuant to Act No. 105, § 1, substituted “unified” for “unorganized” preceding “towns and gores in Essex County” throughout the section.

—1999 (Adj. Sess.). Section amended generally.

—1971. Section amended generally.

1999 (Adj. Sess.). 1999, No. 139 (Adj. Sess.), § 5, eff. May 18, 2000, provided that the amendment to this section by § 1 of that act shall apply to grand lists for April 1, 2000 or after.

§ 4983. Repealed. 1999, No. 139 (Adj. Sess.), § 3, eff. May 18, 2000.

History

Former § 4983. Former § 4983, relating to distribution of revenue, was derived from 1967, No. 331 (Adj. Sess.), § 3.

§ 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.

HISTORY: Added 1967, No. 331 (Adj. Sess.), § 3, eff. Jan. 1, 1969; amended 2017, No. 98 (Adj. Sess.), § 3, eff. April 11, 2018.

History

Amendments

—2017 (Adj. Sess.). Substituted “4301” for “4303” following “section”.

§ 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.

HISTORY: Added 1977, No. 150 (Adj. Sess.), § 1; amended 2005, No. 105 (Adj. Sess.), § 1.

History

Amendments

—2005 (Adj. Sess.). Substituted “unified towns and gores of Essex County” for “unorganized towns and gores of Essex County”.

Subchapter 7. Assessment and Collection of Poll Taxes

History

Revision note—

Reference to “Old Age Assistance” taxes was deleted from subchapter heading for conformity with scope of subchapter.

Repeal of poll taxes. Authority to levy and collect poll taxes under Part 2 of Subtitle 2 was repealed by 1977, No. 118 (Adj. Sess.), § 1(a), eff. Dec. 31, 1981.

References to “poll taxes” and “polls” are to be deleted wherever they appear in Vermont statutes, pursuant to 1977, No. 118 (Adj. Sess.), § 1(b) effective July 1, 1982.

§ 5011. Repealed.

History

Former § 5011. Former § 5011, relating to liability of spouses for poll taxes, was deleted pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

§ 5011 was derived from V.S. 1947, § 811. 1939, No. 22 , § 1. 1935, No. 30 , § 1. P.L. § 769. 1933, No. 20 and amended by 1977, No. 118 (Adj. Sess.), § 6.

§ 5012. Repealed. 1977, No. 118 (Adj. Sess.), § 12, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978.

History

Former § 5012. Former § 5012, relating to assessment and collection of old age assistance tax, was derived from 1955, No. 249 , § 2; 1951, No. 18 , § 2; V.S. 1947, § 799; 1937, No. 38 , § 1, P. IV; 1935, No. 29 , § 1, and amended by 1969, No. 256 (Adj. Sess.), § 1; 1973, No. 97 ; 1977, No. 105 , § 14(a), eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978.

§§ 5013-5023. Repealed.

History

Former §§ 5013-5023. Former §§ 5013-5023, pertaining to assessment and collection of poll taxes, were deleted pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Former § 5013, relating to poll taxes assessed as single tax, was derived from V.S. 1947, § 800. P.L. § 759. G.L. § 868. 1915, No. 48 , § 1.

Former § 5014, relating to assessment of poll taxes, was derived from V.S. 1947, § 802. P.L. § 760. G.L. § 869, 1915, No. 48 , § 2.

Former § 5015, relating to assessment of poll taxes, was derived from V.S. 1947, § 802. P.L. § 760. G.L. § 869. 1915, No. 48 , § 3.

Former § 5016, relating to certification of tax rates for use in assessing poll taxes, was derived from V.S. 1947, § 803. P.L. § 761. G.L. § 870. 1915, No. 48 , § 4.

Former § 5017, relating to collection of poll taxes, was derived from V.S. 1947, § 804. 1937, No. 22 , § 2. P.L. § 762. 1919, No. 37 , § 1. G.L. § 871. 1915, No. 48 , §§ 5, 10.

Former § 5018, relating to discounts for early poll taxes, was derived from V.S. 1947, § 805. 1937, No. 22 , § 2. P.L. § 763. G.L. § 872. 1917, No. 45 , § 1. 1915, No. 48 , § 11.

Former § 5019, relating to apportionment of poll taxes, was derived from V.S. 1947, § 806. P.L. § 764. G.L. § 873. 1917, No. 254 , § 841. 1915, No. 48 , § 6.

Former § 5020, which provided that property list not to include polls, was derived from V.S. 1947, § 807. P.L. § 765, 1933, No. 16 , § 2. G.L. § 874. 1915, No. 48 , §§ 7, 12.

Former § 5021, relating to notification to tax director as to time for payment of poll taxes, was derived from V.S. 1947, § 809. P.L. § 767. G.L. § 876. 1915, No. 48 , § 9.

Former § 5022, relating to special town meetings for purposes of fixing poll taxes, was derived from V.S. 1947, § 809. P.L. § 767. G.L. § 876. 1915, No. 48 , § 9.

Former § 5023, relating to adoption by towns of provisions for assessing and collecting poll taxes, was derived from V.S. 1947, § 810. P.L. § 768. 1919, No. 37 , § 3. G.L. § 877. 1915, No. 48 , § 14.

Subchapter 8. Tax Liens

CROSS REFERENCES

Federal tax liens, see 9 V.S.A. chapter 51, subchapter 7.

Article 1. Lien on Real Property

§ 5061. Force and effect of lien.

  1. 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.
  2. 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.
  3. [Repealed.]

HISTORY: 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.

History

Source.

V.S. 1947, § 885. 1945, No. 12 , § 1. P.L. §§ 780, 825. 1933, No. 19 , § 1. G.L. § 916. 1910, No. 52 , § 4.

Revision note—

Reference to “court of chancery” was changed to “presiding judge of the superior court” and all subsequent references to “court” were changed to “judge” in subsec. (b) pursuant to 1971, No. 185 (Adj. Sess.), § 236 and 1973, No. 193 (Adj. Sess.), § 3. See notes under 4 V.S.A. §§ 71 and 219.

Amendments

—1999. Subsec. (c): Repealed.

—1997 (Adj. Sess.). Subsec. (c): Added.

—1973. Authorized change of county court to superior court.

—1971. Authorized change from court of chancery to county court.

—1961. Designated original paragraph as subsec. (a) and added subsec. (b).

Retroactive application of repeal. 1999, No. 1 , § 60g(a), provided that the repeal of subsec. (c) is to apply retroactively to January 1, 1999.

ANNOTATIONS

Enforcement against realty.

When collector finds any personal property of a delinquent taxpayer, collector must first sell the same before extending warrant upon real estate, even though the personalty will not be sufficient to satisfy the lien. Richford Savings Bank & Trust Co. v. Thomas, 111 Vt. 393, 17 A.2d 239, 1941 Vt. LEXIS 169 (1941).

Though taxes legally assessed upon real estate are a first lien thereon, such lien is not enforceable while last owner on the first day of April in the year of such assessment has personal property from which the tax can be collected. Fulton v. Aldrich, 76 Vt. 310, 57 A. 108, 1904 Vt. LEXIS 140 (1904).

Filing.

This section requires filing as a prerequisite to creation of the lien. West v. Village of Morrisville, 563 F. Supp. 1101, 1983 U.S. Dist. LEXIS 17357 (D. Vt. 1983), vacated, 728 F.2d 130, 1984 U.S. App. LEXIS 25445 (2d Cir. 1984).

Filing in the public record is a prerequisite to enforcement of the lien arising under this section. West v. Village of Morrisville, 563 F. Supp. 1101, 1983 U.S. Dist. LEXIS 17357 (D. Vt. 1983), vacated, 728 F.2d 130, 1984 U.S. App. LEXIS 25445 (2d Cir. 1984).

Liens for delinquent electric charges are charges against the property, not personal obligations of the owner; since they are charges against the property and arise under this section, which requires filing as a prerequisite to the creation of the lien, the liens may not be enforced against subsequent owners of the property where the liens have not been filed. West v. Village of Morrisville, 563 F. Supp. 1101, 1983 U.S. Dist. LEXIS 17357 (D. Vt. 1983), vacated, 728 F.2d 130, 1984 U.S. App. LEXIS 25445 (2d Cir. 1984).

Judgment on lien.

Tax lien is not extinguished by attachment and levy of execution, since statute expressly preserves lien until taxes are fully paid or otherwise discharged, and they are not paid or otherwise discharged by unsatisfied judgment. Town of Highgate v. Missisquoi Lime Works, 104 Vt. 526, 162 A. 367, 1932 Vt. LEXIS 176 (1932).

Proceedings at law on lien.

Town may properly proceed by action at law to determine validity of tax and, when method proves inadequate to collect tax, then proceed in equity to foreclose lien. Town of Highgate v. Missisquoi Lime Works, 104 Vt. 526, 162 A. 367, 1932 Vt. LEXIS 176 (1932).

That town, by pursuing two remedies successively for enforcing collection of taxes, thereby imposing upon owner increased taxable costs, was not just cause for complaint, since owner might have avoided result by payment. Town of Highgate v. Missisquoi Lime Works, 104 Vt. 526, 162 A. 367, 1932 Vt. LEXIS 176 (1932).

Solicitor’s fee.

Where efforts of attorney did not reach full measure of procedures available and expert evidence was presented on issue of reasonable worth of services actually performed, lower court properly adjudicated reasonableness of fees allowed in suit originally begun as action to collect delinquent taxes. City of St. Albans v. Goodrich, 135 Vt. 241, 373 A.2d 549, 1977 Vt. LEXIS 595 (1977).

Cited.

Cited in Bennington Realty, LLC v. Jard Co., 169 Vt. 538, 726 A.2d 56, 1999 Vt. LEXIS 7 (1999) (mem.).

Article 2. Liens on Personal Property

§ 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.

History

Source.

V.S. 1947, § 823. 1939, No. 21 , § 1.

ANNOTATIONS

Creation of lien.

Personal property tax liens arise only when the tax collector exercises discretionary authority to act with respect to a particular taxpayer, and files a notice of tax lien. In re Summit Ventures, Inc., 135 B.R. 483, 1991 Bankr. LEXIS 1862 (Bankr. D. Vt. 1991).

Perfection of lien.

When town failed to comply with the notice requirement of this section to perfect its lien on personal property sale of such property was free and clear of any lien or claim by the town. Town of Bristol v. United States, 315 F. Supp. 908, 1970 U.S. Dist. LEXIS 10734 (D. Vt. 1970).

Cited.

Cited in In re New England Carpet Co., 26 B.R. 934, 1983 Bankr. LEXIS 6942 (Bankr. D. Vt. 1983).

Notes to Opinions

Recording procedures.

Town clerks should keep a separate book for recording liens, record a brief statement of the substance of the lien, index the record book alphabetically by the property owner’s lien, and file the notice of the lien chronologically in a separate lien file; and tax liens that affect title to real property should be noted in the grantor-grantee index. 1972-74 Vt. Op. Att'y Gen. 214.

§ 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.

History

Source.

1951, No. 19 . V.S. 1947, § 824. 1939, No. 21 , § 2.

ANNOTATIONS

Construction with other laws.

The filing of notice of claim of a tax lien under this section subsequent to the filing of a bankruptcy petition may not take effect as a lien against the proceeds of the personal property in the notice of lien since such a result is precluded by the automatic stay provision of 11 U.S.C. § 362(a) . In re Cummings Mkt., Inc., 53 B.R. 224, 1985 Bankr. LEXIS 5635 (Bankr. D. Vt. 1985).

Necessity for filing of notice.

A lien for taxes is not created under this section until the notice is filed; therefore, a lien on which notice has not been filed prior to the filing of a bankruptcy petition may be avoided by a trustee in bankruptcy under 11 U.S.C. § 545. In re New England Carpet Co., 26 B.R. 934, 1983 Bankr. LEXIS 6942 (Bankr. D. Vt. 1983).

Cited.

Cited in West v. Village of Morrisville, 563 F. Supp. 1101, 1983 U.S. Dist. LEXIS 17357 (D. Vt. 1983).

§ 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

Click to view

History

Source.

V.S. 1947, § 830. 1939, No. 21 , § 8.

§ 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.

History

Source.

V.S. 1947, § 831. 1939, No. 21 , § 9.

§ 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.

History

Source.

V.S. 1947, § 825. 1939, No. 21 , § 3.

§ 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.

History

Source.

V.S. 1947, § 827. 1939, No. 21 , § 5.

§ 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.

History

Source.

V.S. 1947, § 828. 1939, No. 21 , § 6.

§ 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.

HISTORY: Amended 1971, No. 84 , § 16, eff. July 1, 1971; 1993, No. 170 (Adj. Sess.), § 15.

History

Source.

1953, No. 169 , § 1. V.S. 1947, § 829. 1939, No. 21 , § 7.

Amendments

—1993 (Adj. Sess.). Substituted “$6.00” for “$3.00” in the first sentence.

—1971. Increased fee and deleted fee for discharge thereof.

ANNOTATIONS

Cited.

Cited in West v. Village of Morrisville, 563 F. Supp. 1101, 1983 U.S. Dist. LEXIS 17357 (D. Vt. 1983).

§ 5079. Sale or transfer of mobile homes; collection of taxes.

  1. A transfer of ownership of a mobile home shall be made pursuant to the requirements set forth in 9 V.S.A. chapter 72.
  2. , (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.

HISTORY: 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.

History

Amendments

—2009 (Adj. Sess.) Rewrote subsec. (a), repealed subsecs. (b) and (c), substituted “ 9 V.S.A. § 2602 ” for “subsection (b) of this section” in the first sentence, rewrote the second sentence of subsec. (d), and substituted “ 9 V.S.A. § 2602 (b)” for “subsection (b) of this section” in subsec. (f).

—2001 (Adj. Sess.) Subsec.(b): Inserted “not” preceding “constitute a release” in the fourth and fifth sentences.

—1999 (Adj. Sess.) Subsec. (a): Amended generally.

Subsec. (b): Amended generally.

Subsec. (c): Deleted “his” preceding “agent, who” and deleted “sells, transfers or” thereafter, inserted “from the town in which it was listed” preceding “without having” and inserted “or her” preceding “possession”.

Subsec. (d): Substituted “a mobile home” for “mobile homes sold, transferred or” preceding “removed from” in the beginning of the first sentence.

Subsec. (e): Substituted “against a mobile home shall” for “against mobile homes shall” and deleted “sale, transfer or” preceding “removal of”.

Subsec. (f): Deleted “in which a mobile home is sold, transferred, or” following “any town” and inserted “or she” following “he”.

Subsec. (g): Amended generally.

—1997 (Adj. Sess.). Subsec. (b): Deleted “real and personal” preceding “property taxes” and substituted “with regard to the mobile home, but not the mobile home site” for “against the owner” in the first sentence.

—1993 (Adj. Sess.). Subsec. (b): Added the second and third sentences.

—1983 (Adj. Sess.). Section amended generally.

—1977 (Adj. Sess.). Section amended generally.

—1977. Substituted “director” for “commissioner” or “commissioner of taxes”.

1999 (Adj. Sess.) amendment. 1999, No. 159 (Adj. Sess.), § 25, eff. May 29, 2000, provided in part that § 22 of that act, which amended this section, shall apply to tax assessments for 2001 and after, and shall apply to sales, transfers, trades, and removal on or after July 1, 2000.

Article 3. Lien on Wages

History

Revision note—

Reference to “Old Age Assistance and” in heading for this article was deleted pursuant to 1977, No. 118 (Adj. Sess.), § 7.

§§ 5091-5093. Repealed.

History

Former § 5091-5093. Former §§ 5091-5093, relating to liens on wages for poll taxes, were deleted pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Former § 5091, relating to citation and hearing for collection of delinquent poll taxes, was derived from V.S. 1947, § 832. 1937, No. 21 , § 1 and amended by 1973, No. 249 (Adj. Sess.), § 100; 1977, No. 118 (Adj. Sess.), § 7.

Former § 5092, relating to nature and amount of lien for delinquent poll taxes, was derived from V.S. 1947, § 833. 1937, No. 21 , § 2 and amended by 1973, No. 249 (Adj. Sess.), § 100; 1977, No. 118 (Adj. Sess.), § 7.

Former § 5093, relating to recovery of unpaid poll taxes from employer, was derived from V.S. 1947, § 834.

Subchapter 9. Delinquent Taxes

Article 1. General Provisions

§ 5131. Supervision by Director.

The Director shall supervise the collection of delinquent taxes by officials of towns and other municipal corporations.

HISTORY: Amended 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 886. P.L. § 826. 1919, No. 38 , § 1.

Amendments

—1977. Substituted “director” for “commissioner” or “commissioner of taxes”.

§ 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 and advise them concerning their official duties, and furnish them printed instructions and directions relating thereto; shall issue such bulletins as in his or her 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 him or her.

HISTORY: Amended 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 887. P.L. § 827. 1919, No. 38 , § 2.

Amendments

—1977. Substituted “director” for “commissioner”.

§ 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.

HISTORY: Amended 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 888. P.L. § 828. 1919, No. 38 , § 3.

Amendments

—1977. Substituted “director” for “commissioner”.

§ 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.

HISTORY: Amended 1959, No. 8 , eff. Feb. 26, 1959; 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 889. P.L. § 829. 1919, No. 38 , § 4.

Amendments

—1977. Substituted “director” for “commissioner”.

—1959. Raised compensation from $3 to $10.

§ 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.

HISTORY: Amended 1977, No. 105 , § 14(a).

History

Source.

V.S. 1947, § 890. P.L. § 830. 1919, No. 38 , § 5.

Amendments

—1977. Substituted “director” for “commissioner”.

§ 5136. Interest on overdue taxes.

  1. 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.
  2. 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 846. 1941, No. 16 . P.L. § 788. 1933, No. 157 , § 724. 1931, No. 10 . 1921, No. 38 . 1919, No. 39 , § 1.

Amendments

—1997. Subsec. (a): Added the second sentence.

—1981 (Adj. Sess.) Subsec. (a): Inserted “for the first three months and thereafter one and one-half percent per month or fraction thereof” preceding “from the due date of such tax” in the first sentence.

—1973. Subsec. (a): Original section designated as subsec. (a) and increased amount of allowable interest.

Subsec. (b): Added.

ANNOTATIONS

Appeal.

An appealed tax assessment is presumed valid during the time of the appeal, and if the taxes are not paid during that time, town may collect interest on the unpaid sum if the appeal fails. Villeneuve v. Town of Underhill, 130 Vt. 446, 296 A.2d 192, 1972 Vt. LEXIS 298 (1972).

Construction.

In order to give effect to the statute governing interest-collection, the Legislature intended interest authorized under that section to be included as an element of the obligation collectible by tax sale, or by other statutory means of property tax collection. Ran-Mar, Inc. v. Town of Berlin, 2006 VT 117, 181 Vt. 26, 912 A.2d 984, 2006 Vt. LEXIS 320 (2006).

Vote of town.

Where town, in voting as to interest charge on unpaid taxes after prescribed due date, did not adopt provisions of this section in the words of warning, but did vote, in substance, to do what statute provides shall be done when its provisions are adopted, and which town could not do unless it adopted such provisions, that vote was, in legal effect, adoption of provisions of section. Brattleboro v. Carpenter, 104 Vt. 158, 158 A. 73, 1932 Vt. LEXIS 132 (1932).

§ 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 836. 1939, No. 62 , § 1. 1937, No. 54 , § 1.

Revision note—

In second sentence deleted “poll,” preceding “personal property or real estate taxes” pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Amendments

—2007 (Adj. Sess.) Inserted “purchased at the expense of the municipality” following “permanent record” in the second sentence, deleted “detach and” preceding “deliver the” in the third sentence, and deleted the former fourth sentence.

—2003 (Adj. Sess.). Section amended generally.

—1977 (Adj. Sess.). Deleted reference to old age assistance taxes.

2003 (Adj. Sess.) amendment. 2003, No. 100 (Adj. Sess.), § 5, eff. April 28, 2004, provided: “This act [which amends this section, §§ 1674 and 4773 of this title, and 24 V.S.A. § 1530 ], shall take effect for the collection of taxes assessed on or after April 1, 2005.”

§ 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.

History

Source.

V.S. 1947, § 820. 1937, No. 23 , § 1. P.L. § 778. G.L. § 886. P.S. § 616. V.S. § 477. 1892, No. 14 , § 1. R.L. § 379. G.S. 84, § 15. R.S. 77, § 14. 1831, No. 35 , §§ 2, 3.

§ 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.

History

Source.

V.S. 1947, § 821. P.L. § 779. 1923, No. 25 , § 1.

ANNOTATIONS

Liability of persons assisting collector.

Person assisting collector in making legal levy will not become a trespasser by a subsequent abuse of authority by collector. Wheelock v. Archer, 26 Vt. 380, 1854 Vt. LEXIS 26 (1854).

§ 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.

History

Source.

V.S. 1947, § 822. 1939, No. 23 , § 1. P.L. § 781. G.L. § 888. P.S. § 618. V.S. § 479. R.L. § 381. 1876, No. 18 .

§ 5141. Collection from earnings of municipal employees.

  1. 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.
  2. 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.

HISTORY: Amended 1971, No. 185 (Adj. Sess.), § 223, eff. March 29, 1972.

History

Source.

V.S. 1947, § 850. 1935, No. 33 , § 1.

Amendments

—1971 (Adj. Sess.). Section amended generally.

CROSS REFERENCES

Wage garnishment, see § 3208 of this title.

Withholding of income taxes by employers, see chapter 151, subchapter 4 of this title.

§ 5142. Delinquent taxes; interest and collection fees.

  1. 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.
  2. 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.
  3. 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.

HISTORY: Added 1985, No. 91 ; amended 1989, No. 149 (Adj. Sess.), § 4, eff. April 24, 1990; 1997, No. 26 , § 4.

History

Amendments

—1997. Designated the existing text of the section as subsec. (a) and added subsecs. (b) and (c).

—1989 (Adj. Sess.). Substituted “collection fees” for “penalties” in the section heading, and in the text of the section substituted “a” for “an authorized” preceding “town official” and “any unpaid” for “the remaining” preceding “balance”, deleted “of” preceding “any interest” and substituted “and collection fees accruing to the town, whether relating to the collected or uncollected portion of taxes” for “or penalties thereon”.

Article 2. Lists of and Reports on Delinquent Payments

§ 5161. Repealed.

History

Former § 5161. Former § 5161, relating to list of delinquent poll taxes, was deleted pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

§ 5161 was derived from 1957, No. 78 , § 2. 1949, NO. 25, § 1. V.S. 1947, § 835. P.L. § 782. 1933, No. 40 , § 1. 1933, No. 157 , § 3452. G.L. § 4136. 1917, No. 254 , § 4070. 1912, No. 127 , § 1. P.S. § 3608. 1904, No. 74 , § 1.

§ 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.

HISTORY: Amended 1977, No. 118 (Adj. Sess.), § 9, eff. Feb. 3, 1978 for tax years beginning Jan. 1, 1978.

History

Source.

1957, No. 78 , § 3. V.S. 1947, § 843. 1937, No. 26 , § 1. 1935, No. 32 , 3.

Revision note—

Deleted reference to poll tax pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Amendments

—1977 (Adj. Sess.). Deleted reference to old age assistance taxes.

§ 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.

History

Source.

V.S. 1947, § 844. 1935, No. 32 , §§ 4, 5.

§ 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.

History

Source.

V.S. 1947, § 845. 1935, No. 32 , § 6.

§§ 5165-5167. Repealed. 2013, No. 73, §§ 35-37, eff. June 5, 2013.

History

Former §§ 5165-5167. Former § 5165, relating to report of delinquent taxes to Director, was derived from V.S. 1947, § 891; P.L. § 831; 1919, No. 38 , § 6 and amended by 1977, No. 105 , § 14(a).

Former § 5166, relating to report of payment to Director, was derived from V.S. 1947, § 892; P.L. § 832; 1933, No. 157 , § 759. 1925, No. 26 ; 1919, No. 38 , § 7 and amended by 1977, No. 105 , § 14(a).

Former § 5167, relating to reporting method of collection to Director, was derived from V.S. 1947, § 893; P.L. § 833; 1919, No. 38 , § 9 and amended by 1977, No. 105 , § 14(a).

Article 3. Distraint of Property

§ 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.

History

Source.

V.S. 1947, § 816. P.L. § 774. G.L. § 882. P.S. § 612. V.S. § 473. 1882. No. 11, § 11. R.L. § 375. 1876, No. 22 . G.S. 84, §§ 8, 9. R.S. 77, §§ 4, 5. R. 1797, p. 336, § 3. R. 1787, p. 126.

Revision note

—2021. Substituted “section 4772” for “subsection 4772(a)” because subsec. (a) was repealed and all subsection designations were deleted from 32 V.S.A. § 4772 by 1993 Acts and Resolves No. 68, § 2.

Revision note—. Words “the time for payment of tax as given in the notice required by § 4772(a) of this title” were substituted for “such time” in the interest of clarity.

ANNOTATIONS

Distraint, nature of.

Property subject to lease cannot be distrained for taxes. Bartlett v. Wilson, 60 Vt. 644, 15 A. 317, 1888 Vt. LEXIS 194 (1888).

In order to constitute a distraint of personal property, the collector must, either by himself or his servant, take and maintain the actual custody and control of the property. Dodge v. Way, 18 Vt. 457, 1846 Vt. LEXIS 72 (1846).

Fraudulent transfers.

Doctrine of fraud in law is limited to creditors and bona fide purchasers and does not apply in favor of State or town levying a tax; hence a chattel belongs to a third party and cannot be levied upon for tax due by taxpayer, although it formerly belonged to the latter and is still in his possession. Daniels v. Nelson, 41 Vt. 161, 1868 Vt. LEXIS 93 (1868).

Levy without notice.

Where collector called upon one legally assessed for the payment of a tax and the taxpayer absolutely refused to pay the tax, after such a refusal the collector was not required to give further time and specify the time and place when and where he would receive the tax, but might at once levy on the property of the one so refusing to pay. Wheelock v. Archer, 26 Vt. 380, 1854 Vt. LEXIS 26 (1854).

Property exempt.

Statute exempting certain property from attachment and execution does not apply to distress for taxes. Hackett v. Amsden, 56 Vt. 201, 1883 Vt. LEXIS 101 (1883).

By the law of this State, beasts of the plow are not exempt from distress for taxes. Sherwin v. Bugbee, 16 Vt. 439, 1844 Vt. LEXIS 102 (1844).

Tender of amount due.

If collector of a tax, after having demanded of a person the amount of his tax, performs travel for purpose of distraining property for payment of such tax, he is entitled to his fees for such travel; and a tender, after such travel is performed, of the amount of the tax and interest is insufficient, if the collector claims his travel fees. Joslyn v. Tracy, 19 Vt. 569, 1847 Vt. LEXIS 84 (1847).

§ 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.

History

Source.

V.S. 1947, § 817. P.L. § 775. G.L. § 883. P.S. § 613. V.S. § 474. 1882, No. 11 , § 2. R.L. §§ 10,376. 1878, No. 107 .

ANNOTATIONS

Prior law.

Where tax collector, before bank stock was made distrainable for taxes by the act of 1882, No. 11 , distrained the plaintiff’s bank stock, and advertised it for sale to pay another’s taxes, and thereupon the plaintiff, with full knowledge of all the facts and in possession of his stock, paid the taxes under protest, such payment was voluntary and not recoverable. Sowles v. Soule, 59 Vt. 131, 7 A. 715, 1886 Vt. LEXIS 15 (1886).

Where prior to passage of statute of 1882, No. 11 , § 2, making bank stock distrainable for taxes, plaintiff, as constable, sold certain bank stock to the defendant, who promised to pay for same, the selling was without law, and the promise without consideration. Barnes v. Hall, 55 Vt. 420, 1883 Vt. LEXIS 58 (1883).

§ 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.

History

Source.

V.S. 1947, § 818. P.L. § 776. G.L. § 884. P.S. § 614. V.S. § 475. R.L. § 377. G.S. 84, §§ 10-12. R.S. 77, §§ 6-8. R. 1797, p. 337, § 4. R. 1787, p. 127, § 3.

ANNOTATIONS

Adjournment of sale.

Adjournment of sale by a collector is proper; but it must be to a definite time. Buzzell v. Johnson, 54 Vt. 90, 1881 Vt. LEXIS 75 (1881).

Sale of property seized for taxes during period of adjournment is irregular, and renders collector a trespasser, even though the property sold well, was applied on the plaintiff’s taxes, and his attorney was present, knew of his mistake and said nothing. Buzzell v. Johnson, 54 Vt. 90, 1881 Vt. LEXIS 75 (1881).

Damages on invalid sale.

Where defendant tax collector distrained and sold plaintiff’s bank stock upon an illegal tax, and plaintiff bid it in and paid for it, the invasion of the plaintiff’s right was complete, even though no transfer was made upon the books of the bank, because the shares already stood in the plaintiff’s name. Sprague v. Fletcher, 69 Vt. 69, 37 A. 239, 1896 Vt. LEXIS 10 (1896).

Evidence of valid sale.

Collector of taxes who is sued as a trespasser for making distress may plead specially, and give in evidence his rate bill, warrant, and advertisement of the distress for sale; and what these do not prove he may show by parol evidence, but collector’s certificates showing seizure and sale of the distress for taxes are not legal evidence for the collector. Hathaway v. Goodrich, 5 Vt. 65, 1833 Vt. LEXIS 10 (1833).

Passage of title.

Title to property passes by operation of law and not, as in private sales, by contract of the parties. Austin v. Soule, 36 Vt. 645, 1864 Vt. LEXIS 24 (1864).

Presumption of valid sale.

Proceedings of collector subsequent to levy will be presumed correct unless from facts existing in the case they appear to be otherwise; and the fact that in making an adjournment of the sale he inserted “4 o’clock, A.M.” instead of “4 o’clock, P.M.” will not render him a trespasser in making the sale. Wheelock v. Archer, 26 Vt. 380, 1854 Vt. LEXIS 26 (1854).

Public place.

Requirement that goods levied upon and sold be advertised and sold at some “public place” means place where advertisement would be likely to attract general attention, so that its contents might reasonably be expected to become a matter of notoriety; a barn, dwelling house, shed, or even a rock or tree, if answering this condition, may be a public place within meaning of the statute. Austin v. Soule, 36 Vt. 645, 1864 Vt. LEXIS 24 (1864).

Return on warrant.

Neglect of collector to make return in writing of his proceedings on his warrant can have no effect to make him a trespasser ab initio; nor is he bound to certify such return to the person whose property has been taken to satisfy such tax, even though requested so to do by the owner of such property, and such return, if made, would not be proper evidence in his justification. Spear v. Tilson, 24 Vt. 420, 1852 Vt. LEXIS 57 (1852).

Time of sale and notice.

Tax sale is illegal without strict and literal compliance with statute; thus, when collector failed to post notice in some public place in town ten days before the sale, sale was held fatally defective. Cummings v. Holt, 56 Vt. 384, 1883 Vt. LEXIS 129 (1883).

Where property was distrained on the 21st of February and advertised on the 25th of February to be sold on third of March, the sale was held in compliance with the statute as to time. Alger v. Curry, 40 Vt. 437, 1868 Vt. LEXIS 29 (1868).

Requirement that collector keep a distress for taxes four days before advertising, and give six days’ notice before selling, does not restrict him to this time, though he may not advertise and sell in less time. Clemons v. Lewis, 36 Vt. 673, 1864 Vt. LEXIS 28 (1864).

Collector must advertise and sell within a reasonable time after the four and six days respectively have expired. Harriman v. School Dist., 35 Vt. 311, 1862 Vt. LEXIS 41 (1862).

Tax collector who has distrained property for payment of tax may post such property for sale before expiration of four days from time of taking property, provided day fixed for sale in six days from expiration of four days allowed owner to redeem property. Harriman v. School Dist., 35 Vt. 311, 1862 Vt. LEXIS 41 (1862).

§ 5194. Repealed. 1979, No. 21.

History

Former § 5194. Former § 5194, relating to arrest of delinquent taxpayer, was derived from V.S. 1947, § 819; G.L. § 885; P.S. § 615; V.S. § 476; R.L. §§ 10, 378; G.S. 84, §§ 13, 14; R.S. 77, §§ 9, 10; R. 1797, p. 337, § 5; R. 1787, p. 126.

Article 4. Action at Law

§ 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.

History

Source.

V.S. 1947, § 863. P.L. § 804. 1933, No. 19 , § 2. G.L. § 919. 1910, No. 52 , § 3. P.S. § 646. V.S. § 508. R.L. § 409. 1865, No. 15 , § 2. G.S. 84, § 37. 1859, No. 35 , § 4.

References in text.

§ 5225, referred to in this section, was repealed by 1971, No. 185 (Adj. Sess.), § 237, effective March 29, 1972.

ANNOTATIONS

Action for penalties and interest.

Town tax collector had no authority to bring action for recovery of penalties and interest accrued on delinquent taxes, since when payment of delinquent taxes is accepted in the amount of the tax alone, the right to collect penalties, interest, and costs is extinguished. Clase v. Fair, 129 Vt. 573, 285 A.2d 705, 1971 Vt. LEXIS 305 (1971).

Construction with other laws.

§§ 5291-5292 of this title require that an objection to the validity of assessment of taxes be filed with town clerk as a prerequisite to the raising of any defense in suit by municipality under this section to recover the tax. City of Winooski v. Matte, 125 Vt. 463, 218 A.2d 458, 1966 Vt. LEXIS 210, 1966 Vt. LEXIS 211 (1966).

Delinquent tax.

Under this section, a tax cannot be said to be delinquent until party liable therefor fails to pay same after receiving required notice. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

Misjoinder of counts.

As section authorizes collector to commence suit “in his name,” it is not a misjoinder to join two counts, when by one the defendant is attached to answer the plaintiff in his individual, and by the other, in his official, capacity. Wheeler v. Wilson, 57 Vt. 157, 1884 Vt. LEXIS 13 (1884).

Pleading.

In suit under this article, want of tax bill, essential to a recovery in such action, may be taken advantage of under general issue. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

Requisites to action.

Notice to taxpayer required by § 4772 or 4792 of this title, when town elects to proceed by warrant, is equally essential when collection of tax is by action at law under this section. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

§ 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.

History

Source.

V.S. 1947, § 860. P.L. § 801. G.L. § 917. 1910, No. 52 , § 1. P.S. § 644. 1900, No. 14 , § 1. V.S. § 506. R.L. § 407. 1865, No. 15 , § 1. 1864, No. 21 . G.S. 84, §§ 34, 35. 1859, No. 35 , §§ 1, 2.

ANNOTATIONS

Costs.

In action for collection of delinquent taxes, costs are to be taxed as may be deemed just and reasonable, and where in such suit plaintiff prevailed on numerous frivolous questions raised, though it failed to recover part of taxes for which it sued, it was awarded full costs. Montpelier v. Central Vermont Ry., 89 Vt. 36, 93 A. 1047, 1915 Vt. LEXIS 183 (1915).

Cumulative remedies.

Several statutory remedies for collection of taxes by sale of land, by collector, by action at law, and by enforcement of tax lien are not exclusive, but cumulative. Town of Highgate v. Missisquoi Lime Works, 104 Vt. 526, 162 A. 367, 1932 Vt. LEXIS 176 (1932).

Choice of one statutory remedy for enforcing collection of taxes does not bar right to proceed by any other statutory method. Town of Highgate v. Missisquoi Lime Works, 104 Vt. 526, 162 A. 367, 1932 Vt. LEXIS 176 (1932).

Notice as requisite.

Notice to taxpayer required under § 4772 or 4792 of this title, when town elects to proceed by warrant, is equally essential when collection of tax is by a suit at law under this section. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

Where it did not appear whether demand for payment was met by such a refusal to pay as obviated necessity for notice, mere demand for payment by treasurer with no further effort to collect did not amount to requisite notice. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

Pleading.

In suit under this section to recover taxes, want of tax bill, essential to a recovery in such action, may be taken advantage of under general issue. Town of Williamstown v. Williamstown Co., 101 Vt. 419, 144 A. 203, 1928 Vt. LEXIS 171 (1928).

Residence of taxpayer.

In action to collect a tax, fact that defendant’s name stood in list of town in favor of which tax was claimed, or decision of listers in setting defendant in said list, were not evidence upon question of defendant’s residence. Gregory v. Bugbee, 42 Vt. 480, 1869 Vt. LEXIS 108 (1869).

§ 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.

History

Source.

V.S. 1947, § 860. For derivation, see note under § 5222 of this title.

Revision note—

Section heading changed from “Recognizance required” to more accurately reflect content of section.

§ 5224. Trustee process.

  1. 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.
  2. 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.

History

Source.

Subsec. (a): V.S. 1947, § 860. For derivation, see note under § 5222 of this title.

Subsec. (b): V.S. 1947, § 861. For derivation, see note under § 5225 of this title.

Revision note

—2021. In subsec. (b), substituted “issued” for “issue” following “and execution” to correct a grammatical error.

CROSS REFERENCES

Trustee process generally, see 12 V.S.A. chapter 121.

ANNOTATIONS

Evidence.

In action to recover tax by a trustee process it was incumbent on plaintiff to show that at the date of the writ defendant had no known personal property in State sufficient to pay tax, and it was not error to admit, for the purpose of proving such fact, an inventory made by defendant and sworn to by him, which included no personal property. Bartlett v. Wilson, 60 Vt. 644, 15 A. 317 (1888), same case 59 Vt. 23, 8 A. 321.

Parties.

In suit begun by trustee process, in order to hold trustee, the fund in his hands must belong to defendant in his own right, and not as administrator. Coolidge v. Taylor, 85 Vt. 39, 80 A. 1038, 1911 Vt. LEXIS 204 (1911).

Administrator of tax collector may enter and prosecute to final judgment a suit begun by collector in his lifetime for collection of tax by trustee process. Smith v. Blair, 67 Vt. 658, 32 A. 504, 1895 Vt. LEXIS 96 (1895).

§ 5225. Repealed. 1971, No. 185 (Adj. Sess.), § 237, eff. March 29, 1972.

History

Former § 5225. Former § 5225, relating to sufficiency of tax complaint, was derived from V.S. 1947, § 861; 1939, No. 25 , § 9; P.L. § 802; 1933, No. 157 , § 751; G.L. § 918; 1910, No. 53 ; 1910, No. 52 , § 2; P.S. § 645; V.S. § 507; R.L. § 408; G.S. 84, § 36; 1859, No. 35 , § 3.

§ 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.

History

Source.

V.S. 1947, § 861. For derivation, see note under § 5225 of this title.

References in text.

§ 5225, referred to in this section, was repealed by 1971, No. 185 (Adj. Sess.), § 237, effective March 29, 1972.

ANNOTATIONS

Admissibility of evidence.

Under provision that tax bill regular on its face and placed in hands of officer for collection shall be prima facie evidence, tax bills to which no grounds of objection were set forth in answer were admissible in evidence. Brattleboro v. Carpenter, 104 Vt. 158, 158 A. 73, 1932 Vt. LEXIS 132 (1932).

§ 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.

HISTORY: Amended 1973, No. 249 (Adj. Sess.), § 102, eff. April 9, 1974.

History

Source.

V.S. 1947, § 862. P.L. § 803. 1933, No. 19 , § 3. G.L. § 920. P.S. § 647. V.S. § 509. R.L. § 410. 1865, No. 15 , § 3.

Amendments

—1973 (Adj. Sess.). Deleted reference to justice.

Article 5. Sale of Real Estate

§ 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.

History

Source.

Subdiv. (1): V.S. 1947, § 873. 1939, No. 25 , § 7.

Subdiv. (2): V.S. 1947, § 874. 1939, No. 25 , § 8.

Revision note

—2021. In subdiv. (2), substituted “subdivision (1) of this” for “the preceding” for clarity.

§ 5252. Levy and notice of sale; securing property.

  1. 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 is delinquent, the collector may extend a warrant on such land. 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 10 days prior thereto if the delinquent is a resident of the town and 20 days prior thereto if the delinquent is a nonresident of the town. If the notice by certified mail is returned unclaimed, 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.
    4. Give to the mortgagee or lien holder of record written notice of such sale at least 10 days prior thereto if a resident of the town and, if a nonresident, 20 days’ notice to the mortgagee or lien holder of record or his or her 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.
  2. 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.

HISTORY: Amended 1993, No. 141 (Adj. Sess.), § 16, eff. May 6, 1994; 2017, No. 7 , § 2; 2017, No. 117 (Adj. Sess.), § 3.

History

Source.

V.S. 1947, § 864. 1941, No. 17 . 1939, No. 25 , §§ 1, 3, 13. P.L. § 805. G.L. § 896. 1910, No. 50 , § 1. P.S. § 625. V.S. § 487. R.L. § 389. G.S. 84, § 17. 1855, No. 20 . R.S. 77, § 11. R. 1797, p. 338, § 7. R. 1787, p. 126.

Revision note

—2021. In subsec. (a), substituted “6248(b)” for “6248(c)” to correct the reference to 10 V.S.A. § 6248(c) , which was redesignated as subsec. (b) by 2015, No. 8 , § 4.

Amendments

—2017 (Adj. Sess.). Subsec. (a): Substituted “after” for “of” following “days” in the second sentence.

Subdiv. (a)(3), (a)(4): Substituted “certified” for “registered” preceding “mail” and added the second sentence.

—2017. Inserted “; securing property” following “sale” in the section heading; added the subsec. (a) designation; and added subsec. (b).

—1993 (Adj. Sess.). In the introductory paragraph, substituted “a” for “his” preceding “warrant” in the first sentence, added the second and third sentences, and substituted “the tax collector” for “he so” preceding “extends” and “the” for “his” thereafter in the fourth sentence.

Subdiv. (1): Substituted “the” for “his” following “copy of” and “the collector” for “him” preceding “for collection” in two places and for “he” preceding “has levied”.

Subdiv. (3): Added “and twenty days prior thereto if the delinquent is a nonresident of the town” following “resident of the town”.

Subdiv. (4): Substituted “the mortgagee or lien holder of record” for “him” following “notice to” and inserted “or her” preceding “agent”.

ANNOTATIONS

Advertising sale.

Collector’s advertisements of particular land taxes must be signed by him, as collector. Spear v. Ditty, 9 Vt. 282 (1837), same case 8 Vt. 419.

Cumulative remedies.

Several statutory remedies for collection of taxes, by sale of land by collector, by action at law, and by enforcement of tax lien, are not exclusive, but cumulative. Town of Highgate v. Missisquoi Lime Works, 104 Vt. 526, 162 A. 367, 1932 Vt. LEXIS 176 (1932).

That town, by pursuing two remedies successively for enforcing collection of taxes, thereby imposes upon owner increased taxable costs, was not just cause for complaint, since owner might have avoided result by payment. Town of Highgate v. Missisquoi Lime Works, 104 Vt. 526, 162 A. 367, 1932 Vt. LEXIS 176 (1932).

Purchase by collector.

Tax collector cannot personally or by agent purchase real estate at an official sale thereof made by himself to satisfy unpaid taxes assessed against it, and acquires no title to it by such transaction, notwithstanding statute provides for a redemption of property by the owner within a year after the sale and owner fails to redeem. Chandler v. Moulton, 33 Vt. 245, 1860 Vt. LEXIS 102 (1860).

Purposes of notice.

The purposes of the notices of levy and sale are (1) to inform the taxpayer that taxpayer’s property is to be sold so that taxpayer can prevent the sale by paying the delinquent taxes, and (2) to advise prospective purchasers that the land is to be sold. Chester Motors, Inc. v. Koledo, 146 Vt. 357, 503 A.2d 551, 1985 Vt. LEXIS 437 (1985).

Sufficiency of notice.

Description of property in the notice of a tax sale was sufficient under subdiv. (1) of this section, where the properties were identified by lot number, even though the properties were also identified by an erroneous reference to wrong warranty deed. Chester Motors, Inc. v. Koledo, 146 Vt. 357, 503 A.2d 551, 1985 Vt. LEXIS 437 (1985).

Where notice of levy for collection of delinquent real estate taxes was given to nonresident owner by registered and first class mail, by posting locally in a public place, and by publication for two consecutive weeks in the local newspaper, in the context of the entire notice procedure, failure to publish notice for a third consecutive week in the local newspaper did not constitute a jurisdictional defect negating authority to effectuate the tax sale. Turner v. Spera, 140 Vt. 19, 433 A.2d 307, 1981 Vt. LEXIS 548 (1981).

Notes to Opinions

Notice to mortgagee.

The written notice to be given a mortgagee or lien holder residing in town where land is situated when a duly recorded mortgage or other lien exists upon the land, need not be by personal service. 1938-40 Vt. Op. Att'y Gen. 447.

Notice to owner.

Delinquent taxpayer must be notified in writing by registered mail, of the tax sale of his property (1) if a resident of the town wherein such land is situated, at least 10 days prior to the sale, and (2) if a nonresident of the town wherein such land is situated or of the State, at least 20 days prior to the sale. 1938-40 Vt. Op. Att'y Gen. 447.

§ 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. Dated at , Vermont, this day of (month), (year). Collector of Town Taxes

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HISTORY: Amended 1995, No. 106 (Adj. Sess.), § 1.

History

Source.

V.S. 1947, § 865. 1939, No. 25 , § 1. P.L. § 805. G.L. § 896. 1910, No. 50 , § 1. P.S. § 625. V.S. § 487. R.L. § 389. G.S. 84, § 17. 1855, No. 20 . R.S. 77, § 11. R. 1797, p. 338, § 7. R. 1787, p. 126.

Amendments

—1995 (Adj. Sess.) Made stylistic changes to the form.

ANNOTATIONS

Cited.

Cited in Chester Motors, Inc. v. Koledo, 146 Vt. 357, 503 A.2d 551, 1985 Vt. LEXIS 437 (1985).

§ 5254. Sale of realty.

  1. 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.
  2. 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.

HISTORY: 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.

History

Source.

V.S. 1947, § 865. For derivation, see note under § 5253 of this title.

Amendments

—1999. Subsec. (a): Inserted “and fees” following “tax with costs” and “costs and fees” following “pay such taxes”.

—1995 (Adj. Sess.) Designated the existing provisions of the section as subsec. (a) and substituted “the real property on which the taxes are due shall be sold to pay such taxes” for “so much of the land may be sold as is necessary to pay such tax and costs” following “day of sale” in that subsection and added subsec. (b).

Repeal of 1995, No. 106 (Adj. Sess.) amendment. 1999, No. 49 , § 69, eff. June 2, 1999, repealed the amendment to this section by 1995, No. 106 (Adj. Sess.), § 2.

ANNOTATIONS

Accounting to taxpayer.

Where town purchased property sold for delinquent taxes, paying purchase price of $848.67, the amount of the taxes due, and town then resold the property for $5,314, it would be unconscionable for town to retain the difference between the taxes due and the proceeds on resale, and delinquent taxpayer was entitled to the difference. Bogie v. Town of Barnet, 129 Vt. 46, 270 A.2d 898, 1970 Vt. LEXIS 199 (1970) (Decided under prior law).

Interest.

In order to give effect to the statute governing interest collection, the Legislature intended interest authorized under that section to be included as an element of the obligation collectible by tax sale or by other statutory means of property tax collection. Ran-Mar, Inc. v. Town of Berlin, 2006 VT 117, 181 Vt. 26, 912 A.2d 984, 2006 Vt. LEXIS 320 (2006).

Limitation on authority.

Right to sell real estate to satisfy tax is wholly dependent on statute and is limited to authority expressed. Peterson v. Moulton, 120 Vt. 439, 144 A.2d 717, 1958 Vt. LEXIS 122 (1958).

Collector is authorized to sell only so much of land as is necessary to pay unpaid taxes with costs, and if collector sells more than is necessary for that purpose, then collector exceeds power conferred upon collector by law, and the sale is void. Peterson v. Moulton, 120 Vt. 439, 144 A.2d 717, 1958 Vt. LEXIS 122 (1958) (Decided under prior law).

Sale of excess property.

The burden is on the party seeking to justify a tax sale to prove that no excess property was sold. Price v. Leland, 149 Vt. 518, 546 A.2d 793, 1988 Vt. LEXIS 66 (1988) (Decided under prior law).

Where property appraised by town at $27,000 was sold at tax sale for $183.46, this grossly disparate amount led to a presumption that the town sold more of the property than was necessary to satisfy the taxes due, and unless that presumption was overcome, the tax sale was fatally defective. Price v. Leland, 149 Vt. 518, 546 A.2d 793, 1988 Vt. LEXIS 66 (1988) (Decided under prior law).

§ 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.

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History

Source.

V.S. 1947, § 866. 1939, No. 25 , § 1. P.L. § 805. G.L. § 896. 1910, No. 50 , § 1. P.S. § 625. V.S. § 487. R.L. § 389. G.S. 84, § 17. 1855, No. 20 . R.S. 77, § 11. R. 1797, p. 338, § 7. R. 1787, p. 126.

ANNOTATIONS

Defective report as evidence.

Report of sale lodged in clerk’s office, which carried internal evidence that it was not left in said office within 30 days next after the sales and was not attested by collector as a true copy, as statute required, was rightly excluded by county court from going to jury as evidence. Richardson v. Dorr, 5 Vt. 9, 1833 Vt. LEXIS 1 (1833).

§ 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.

History

Source.

V.S. 1947, § 881. P.L. § 821. G.L. § 912. P.S. § 640. V.S. § 502. 1888, No. 6 , § 1.

§ 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.

HISTORY: Amended 1959, No. 218 , § 2; 1977, No. 118 (Adj. Sess.), § 10, eff. Feb. 3, 1978, for tax years beginning Jan. 1, 1978.

History

Source.

V.S. 1947, § 867. 1939, No. 25 , § 2.

Revision note—

Deleted reference to poll tax in the section heading and in text pursuant to 1977, No. 118 (Adj. Sess.), § 1(b), which provided for the deletion of references to “poll taxes” and “polls” in Vermont statutes.

Amendments

—1977 (Adj. Sess.). Deleted reference to old age assistance taxes.

—1959. Changed “resident taxpayer” to “taxpayer”.

§ 5258. Fees and costs allowed after warrant and levy recorded.

  1. 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.
  2. 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.

HISTORY: 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.

History

Source.

1955, No. 195 . V.S. 1947, § 875. 1939, No. 25 , § 12.

Amendments

—2021. Subdivs. (a)(2) and (a)(8): Substituted “$15.00” for “$10.00”.

Subdiv. (a)(9): Substituted “$15.00 per page” for “$30.00”.

—2017 (Adj. Sess.). Subdiv. (a)(3): Added “including the costs of service pursuant to subdivisions 5252(a)(3) and (4) of this title” at the end.

—2017. Section amended generally.

—1995 (Adj. Sess.) Substituted “after warrant and levy recorded” for “on sales” in the section heading, “after the warrant and levy for delinquent taxes have been recorded” for “in the sale of lands for taxes”, “and” for “fifty cents each and the actual cost of” preceding “publication of notice” and inserted “actual costs incurred” thereafter, deleted “however” following “provided”.

—1985 (Adj. Sess.). Substituted “$10.00” for “$3.00” following “levy and extending of warrant”, “recording levy and extending of warrant in town clerk’s office”, “attending and holding sale”, “making return”, “recording same in town clerk’s office, to be paid town clerk”, and “$30.00” for “$10.00” following “collector’s deed”, and inserted “and reasonably” following “expenses actually”.

—1983 (Adj. Sess.). Substituted “or” for “and” preceding “conduct” and “reimbursement at the rate established by the contract governing state employees” for “fifteen cents per mile” following “travel”.

—1963. Increased fees generally.

ANNOTATIONS

Fees and costs allowable.

Town’s use of the term “penalties” in a notice to refer to the collector’s fee authorized by statute did not invalidate a tax sale, nor did it prevent the town from collecting the fee. The purpose of the notice was to inform the taxpayer that the property was to be sold, so that the taxpayer could prevent the sale by paying the delinquent taxes. The notice was clear enough to inform taxpayers of the sale and of the amount properly due. Ran-Mar, Inc. v. Town of Berlin, 2006 VT 117, 181 Vt. 26, 912 A.2d 984, 2006 Vt. LEXIS 320 (2006).

Provisions of this section only entitle a party to attorneys’ fees upon occurrence of a tax sale. Rooney Vermont Associates v. Town of Pownal, 140 Vt. 150, 436 A.2d 733, 1981 Vt. LEXIS 574 (1981).

Notes to Opinions

Costs defined.

The word “costs” as used in section means expenses incurred by collector in carrying out duties of office; and are distinguished from fees in being an allowance to collector for expenses incurred in carrying out tax sale; whereas fees are compensation to collector for services rendered in connection therewith. 1938-40 Vt. Op. Att'y Gen. 447.

Fees and costs allowable.

Fees and costs allowed tax collector are (1) in the sale of any lands for taxes fixed by this section and (2) in the sale of personal property or personal estate for taxes fixed by § 1674(3) of this title. 1938-40 Vt. Op. Att'y Gen. 447.

Collector is entitled to a fee of $3 for making return required by the law and should be reimbursed, as costs, the $1 paid to the town clerk for recording return. 1938-40 Vt. Op. Att'y Gen. 447.

Collector in the sale of land for taxes is entitled to charge, as costs, fifteen cents for each mile that collector necessarily travels in carrying out the legal requirement prescribed in § 5252 of this title, in addition to fees provided. 1938-40 Vt. Op. Att'y Gen. 447.

Collector may charge mileage for filing collector’s return in the office of the town clerk. 1938-40 Vt. Op. Att'y Gen. 447.

Collector may charge mileage for posting notice of sale in some public place. 1938-40 Vt. Op. Att'y Gen. 447.

§ 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.

HISTORY: Amended 1993, No. 141 (Adj. Sess.), § 17, eff. May 6, 1994; 2005, No. 81 , § 1.

History

Source.

V.S. 1947, § 876. P.L. § 806. G.L. § 897. 1915, No. 45 .

Revision note

—2021. In second sentence, substituted “6248(b)” for “6248(c)” to correct the reference to 10 V.S.A. § 6248(c) , which was redesignated as subsec. (b) by 2015, No. 8 , § 4.

Amendments

—2005. Added the third sentence.

—1993 (Adj. Sess.). Added the second sentence.

ANNOTATIONS

Accounting to taxpayer.

A municipality’s authority under this section to bid at a tax sale constitutes an ultimate recourse given to protect the municipality against any conspired attempts to avoid the sale by discouraging all bidding, but the municipality is not entitled to hold the property or retain the proceeds of a resale to an extent greater than the amount of the delinquent taxes. Bogie v. Town of Barnet, 129 Vt. 46, 270 A.2d 898, 1970 Vt. LEXIS 199 (1970).

The town is subject to the restraints of fiduciary duty with respect to the delinquent taxpayer when buying and holding or reselling property under this section. Bogie v. Town of Barnet, 129 Vt. 46, 270 A.2d 898, 1970 Vt. LEXIS 199 (1970).

Where town purchased property sold for delinquent taxes, paying purchase price of $848.67, the amount of the taxes due, and town then resold the property for $5,314, it would be unconscionable for town to retain the difference between the taxes due and the proceeds on resale, and delinquent taxpayer was entitled to the difference. Bogie v. Town of Barnet, 129 Vt. 46, 270 A.2d 898, 1970 Vt. LEXIS 199 (1970).

§ 5260. Redemption.

When the owner or mortgagee of lands sold for taxes, his or her 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 his or her 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 or mortgagee or his or her 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.

HISTORY: Amended 1989, No. 119 , § 21, eff. June 22, 1989; 2005, No. 81 , § 2.

History

Source.

V.S. 1947, § 877. P.L. § 807. G.L. § 898. 1917, No. 46 , § 1. P.S. § 626. V.S. § 488. R.L. § 390. G.S. 84, §§ 18, 19. 1850, No. 64 , § 2. R.S. 77, § 12. R. 1797, p. 338, § 7. R. 1787, p. 126.

Amendments

—2005. Made gender inclusive changes throughout the first sentence and added the second sentence.

—1989. Deleted “twelve per cent” preceding “interest thereon” and inserted “calculated at a rate of one percent per month or fraction thereof from the day of sale to the day of payment” thereafter.

ANNOTATIONS

Partial payment.

This section provides no discretion to a tax collector as to whether to accept less than full payment, and precludes a situation whereby a collector’s right to collect the outstanding balance of the requisite 12% interest is extinguished by his acceptance of partial payment of that interest. Westine v. Whitcomb, Clark & Moeser, 150 Vt. 9, 547 A.2d 1349, 1988 Vt. LEXIS 98 (1988).

Town acted appropriately in issuing a tax deed to purchaser of property at tax sale after the time for redemption had passed, where during the redemption period, property owner tendered the amount paid by the tax sale purchaser, but only part of the interest due. Westine v. Whitcomb, Clark & Moeser, 150 Vt. 9, 547 A.2d 1349, 1988 Vt. LEXIS 98 (1988).

Purchaser of property at tax sale who obtained title to the property upon issuance of a tax deed was required to return partial payment made in an attempt to redeem the property. Westine v. Whitcomb, Clark & Moeser, 150 Vt. 9, 547 A.2d 1349, 1988 Vt. LEXIS 98 (1988).

Purchase by collector.

A tax collector cannot personally or by agent purchase real estate at an official sale thereof made by himself to satisfy unpaid taxes assessed against it, and acquires no title to it by such transaction, notwithstanding the statute provides for a redemption of the property by the owner within a year after the sale, and the owner fails to redeem. Chandler v. Moulton, 33 Vt. 245, 1860 Vt. LEXIS 102 (1860).

Redemption under bankruptcy plan.

Where the tax sale purchasers of the debtor’s real property sought relief from the automatic stay, under 11 U.S.C. § 362(d) (2), and from the confirmation order of debtor’s plan under Fed. R. Civ. P. 60(b)(4), the debtor had effectively redeemed the property within the redemption period of 32 V.S.A. § 5260 , and relief was denied. In re Brodeur, 434 B.R. 348, 2010 Bankr. LEXIS 2662 (Bankr. D. Vt. 2010).

Right to tax collector’s deed.

Plaintiff had no right to the injunctive and declaratory relief sought against the municipal defendants—issuing plaintiff a tax collector’s deed to the subject property—because neither the town nor the town clerk were legally authorized under Vermont law to transfer the property to plaintiff. Under the governing statutes, redemption of property sold at a tax sale did not entitle the redeeming party to a tax collector’s deed. Burgess v. Lamoille Hous. P'ship, 2016 VT 31, 201 Vt. 450, 145 A.3d 217, 2016 Vt. LEXIS 29 (2016).

Cited.

Cited in Green Mountain Fence Co. v. Vigario, 147 Vt. 74, 510 A.2d 1316, 1986 Vt. LEXIS 363 (1986).

§ 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.

History

Source.

V.S. 1947, § 878. 1943, No. 17 , § 1. P.L. § 808. G.L. § 899. P.S. § 627. V.S. § 489. R.L. § 391. G.S. 84, § 20. R.S. 77, § 13. R. 1797, p. 399, § 8. R. 1787, p. 126.

ANNOTATIONS

Damages.

Measure of damages in action against town by purchaser of land sold by constable for taxes, to recover for constable’s neglect in his proceeds, in consequence of which no valid title was conveyed by his deed, is amount of money paid by purchaser for the deed, with interest. Saulters v. Town of Victory, 35 Vt. 351, 1862 Vt. LEXIS 48 (1862).

Partial payment tendered during redemption period.

Town acted appropriately in issuing a tax deed to purchaser of property at tax sale after the time for redemption had passed, where during the redemption period property owner tendered the amount paid by the tax sale purchaser, but only part of the interest due. Westine v. Whitcomb, Clark & Moeser, 150 Vt. 9, 547 A.2d 1349, 1988 Vt. LEXIS 98 (1988).

Purchaser of property at tax sale who obtained title to the property upon issuance of a tax deed was required to return partial payment made in an attempt to redeem the property. Westine v. Whitcomb, Clark & Moeser, 150 Vt. 9, 547 A.2d 1349, 1988 Vt. LEXIS 98 (1988).

Person claiming title under deed.

Person claiming title to real estate under tax collector’s deed has burden of proving every act necessary to validity of tax, levy, and sale. Peterson v. Moulton, 120 Vt. 439, 144 A.2d 717, 1958 Vt. LEXIS 122 (1958).

Possession adverse to purchaser.

One in possession under claim and color of title is not a mere intruder, but stands the same with reference to one claiming under a tax deed as would former owner. Downer v. Tarbell, 61 Vt. 530, 17 A. 482, 1889 Vt. LEXIS 79 (1889).

Purchaser without deed.

Purchaser in tax sale conducted with due formality, who enters in good faith and in reliance upon his title, and occupies, but who never receives deed from collector, has such equitable interest in premises that he may maintain suit. Langdon v. Templeton, 61 Vt. 119, 17 A. 839, 1888 Vt. LEXIS 121 (1888).

Requisites to valid deed.

Where statute makes it duty of a sheriff to collect taxes, he must perform every prerequisite or his deed will be void. Richardson v. Dorr, 5 Vt. 9, 1833 Vt. LEXIS 1 (1833).

Right to tax collector’s deed.

Plaintiff had no right to the injunctive and declaratory relief sought against the municipal defendants—issuing plaintiff a tax collector’s deed to the subject property—because neither the town nor the town clerk were legally authorized under Vermont law to transfer the property to plaintiff. Under the governing statutes, redemption of property sold at a tax sale did not entitle the redeeming party to a tax collector’s deed. Burgess v. Lamoille Hous. P'ship, 2016 VT 31, 201 Vt. 450, 145 A.3d 217, 2016 Vt. LEXIS 29 (2016).

Tax deed as evidence.

Recitals in a tax deed as to preliminary proceedings are no evidence of the facts stated in such recitals. Downer v. Tarbell, 61 Vt. 530, 17 A. 482, 1889 Vt. LEXIS 79 (1889); Brown v. Wright, 17 Vt. 97, 1843 Vt. LEXIS 137 (1843).

Warranty.

Where there was no legislation to the contrary, purchaser of land at tax sale held to pay tax on the land bought strictly under the rule of caveat emptor, tax collector’s warranty contained in deed to purchaser at tax sale was of no force and effect, there was no warranty on the part of the town making the sale, and purchaser’s claim against town for monetary damages suffered by purchaser as a result of primary action, in which it was held that another had superior title, was properly dismissed. Morse v. King, 137 Vt. 49, 398 A.2d 299, 1979 Vt. LEXIS 927 (1979).

§ 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.

History

Source.

V.S. 1947, § 879. P.L. § 809. G.L. § 900. P.S. § 628. V.S. § 490. R.L. § 392. G.S. 84, § 21. 1850, No. 64 , § 3.

§ 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.

HISTORY: Amended 1959, No. 218 , § 5; 2017, No. 117 (Adj. Sess.), § 2.

History

Source.

V.S. 1947, § 880. 1945, No. 11 , §§ 1, 2. 1939, No. 25 , § 10. P.L. § 810. G.L. § 901. 1915, No. 44 . P.S. § 629. V.S. § 491. 1886, No. 85 , § 1.

Amendments

—2017 (Adj. Sess.). Substituted “one year” for “three years” following “within”.

—1959. Section amended generally.

ANNOTATIONS

Laches.

Where suit for removal of cloud on title to land, resulting from an alleged irregular tax sale, was instituted within five years from date of sale, chancellor could consider the five-year limitation of this section in arriving at conclusion as to laches. Darling v. Hall, 114 Vt. 363, 45 A.2d 208, 1946 Vt. LEXIS 79 (1946).

Possession by grantee.

Where grantee has never been in possession under tax deed there is no presumption in favor of the regularity of the tax sale in subsequent proceedings by a person in possession under claim of right and color of title. Downer v. Tarbell, 61 Vt. 530, 17 A. 482, 1889 Vt. LEXIS 79 (1889).

When no possession has been taken under tax deed, no presumption in its favor can be claimed from its antiquity, but rather the contrary. Brown v. Wright, 17 Vt. 97, 1843 Vt. LEXIS 137 (1843).

Possession by others.

One in possession under claim and color of title is not a mere intruder, but stands the same with reference to one claiming under a tax deed as would the former owner and in such case provision that the payment of taxes by the grantee in a tax deed shall perfect his title as against trespasser does not apply. Downer v. Tarbell, 61 Vt. 530, 17 A. 482, 1889 Vt. LEXIS 79 (1889).

Relationship to Other Statutes.

Statute limiting actions by a grantee in possession covers all actions for the recovery of land filed against the grantee of those lands in a tax collector’s deed. But it and the statute imposing a one-year time limitation on taxpayer suits are harmonized by the conclusion that the latter statute creates a carve-out for situations in which the asserted basis for recovery of land is invalidity of the actions of the tax collector relating to the collection of the tax. Billewicz v. Town of Fair Haven, 2021 VT 20, 254 A.3d 194, 2021 Vt. LEXIS 26 (Vt. 2021).

Review.

Where suit for removal of cloud on title to land, resulting from alleged irregular tax sale, was instituted within five years from date of sale, and from facts found, chancellor could reasonably infer that laches as alleged in defendant’s answer was not a good defense, Supreme Court would presume that the chancellor did so infer in support of decree for plaintiff. Darling v. Hall, 114 Vt. 363, 45 A.2d 208, 1946 Vt. LEXIS 79 (1946).

Article 6. Taxpayers’ Defenses

§ 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.

History

Source.

V.S. 1947, § 861. For derivation, see note under § 5225 of this title.

References in text.

§ 5225, referred to in this section, was repealed by 1971, No. 185 (Adj. Sess.), § 237, effective March 29, 1972.

Revision note—

Words “in equity” were deleted inasmuch as V.R.C.P. Rule 2, effective July 1, 1971, provided for “one form of action to be known as ‘civil action’ ”.

ANNOTATIONS

Construction with other laws.

Although under § 5292 of this title a taxpayer must file objections to the validity of the tax assessed against the taxpayer in order to have standing to contest the same, such as where a taxpayer claims the tax is invalid as a constitutional matter because of unequal assessment and collection, or where a taxpayer asserts that the grand list is invalid because of the listers’ noncompliance with relevant statutes, no such objections need be filed where the action is not one brought under this section, but is one questioning the assessment of property. Hojaboom v. Town of Swanton, 141 Vt. 43, 442 A.2d 1301, 1982 Vt. LEXIS 471 (1982).

Defenses proscribed.

School with property found exempt from taxation, which made good faith claim it should not be classed as a taxpayer, could not be held to procedural requirement that a taxpayer contest validity of a tax within a certain time and in a certain way, for school was not in fact a taxpayer. Town of Williston v. Pine Ridge School, Inc., 132 Vt. 439, 321 A.2d 24, 1974 Vt. LEXIS 366 (1974).

This section and § 5292 of this title require that an objection to the validity of assessment of taxes be filed with town clerk as a prerequisite to the raising of any defense in suit by municipality under § 5221 of this title to recover the tax. City of Winooski v. Matte, 125 Vt. 463, 218 A.2d 458, 1966 Vt. LEXIS 210, 1966 Vt. LEXIS 211 (1966).

Provision that defendant shall not avail himself of defense unless he shall by plea or notice set forth the particular grounds whereon he claims the tax is invalid, confines defendant to the grounds of invalidity set forth in his plea or notice. Montpelier v. Central Vermont Ry., 89 Vt. 36, 93 A. 1047, 1915 Vt. LEXIS 183 (1915).

Definitions.

In this section “particular” was used in its ordinary sense and means: separate or distinct member of a class, or part of a whole; and individual fact, point, circumstance, detail, or item, which may be considered separately. Brattleboro v. Carpenter, 104 Vt. 158, 158 A. 73, 1932 Vt. LEXIS 132 (1932).

Evidence admissible.

Under provision of this section requiring notice of particular grounds and § 5226 of this title providing tax bills regular on their face are prima facie evidence of validity of taxes therein assessed, but bills as to which no objections were set forth in answer were admissible in evidence. Brattleboro v. Carpenter, 104 Vt. 158, 158 A. 73, 1932 Vt. LEXIS 132 (1932).

§ 5292. Filing of taxpayer’s objections.

  1. 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.
  2. 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.

HISTORY: Amended 1957, No. 219 , § 2, eff. July 1, 1961; 1959, No. 218 § 3.

History

Source.

Subsec. (a): V.S. 1947, § 868. 1939, No. 25 , § 4.

Subsec. (b): V.S. 1947, § 870. 1939, No. 25 , § 4.

Amendments

—1959. Subsec. (a): Changed “board of listers” to “listers”; “validity of any quadrennial appraisal or grand list based thereon” to “validity of any grand list”; and “shall file his objections in writing” to “files his objections”.

—1957. Subsec. (b): “Appraisal” was substituted for “quadrennial appraisal”.

ANNOTATIONS

Cause of action.

Where plaintiffs, property owners in town, challenged the valuation established for their property and attacked the findings of the town board of civil authority as insufficient under subsection (c) of § 4404 of this title, the plaintiffs were not required to comply with the procedure of this section, since neither the validity of the tax nor the validity of the actions of the listers or selectmen were contested in count I of the complaint. Hojaboom v. Town of Swanton, 141 Vt. 43, 442 A.2d 1301, 1982 Vt. LEXIS 471 (1982).

Challenge to portion of tax.

A taxpayer seeking to challenge the validity of a portion of the tax assessed need not pay without protest that portion not challenged in order to preserve a cause of action as to the portion challenged, for requiring taxpayer to do so would place upon taxpayer the burden of predetermining the very question upon which taxpayer seeks a court decision, that is, the extent to which the assessment is invalid. Swanton Village v. Town of Highgate, 128 Vt. 401, 264 A.2d 804, 1970 Vt. LEXIS 242 (1970).

Defenses proscribed.

School with property found exempt from taxation, which made good faith claim it should not be classed as a taxpayer, could not be held to procedural requirement that a taxpayer contest validity of a tax within a certain time and in a certain way, for school was not in fact a taxpayer. Town of Williston v. Pine Ridge School, Inc., 132 Vt. 439, 321 A.2d 24, 1974 Vt. LEXIS 366 (1974).

Propriety of and defects in tax collection proceedings are issues outside the validity of an assessment, and taxpayers were entitled to raise defenses against improper or defective collection proceedings whether or not their failure to file objections to the validity of the taxes assessed deprived them of standing to contest the validity of the tax. Dike v. McCormick, 128 Vt. 349, 264 A.2d 769, 1970 Vt. LEXIS 231 (1970).

Claim that tax was constitutionally invalid because of unequal assessment and collection of taxes constituted a defense to the collection of the tax assessed against plaintiff, which could not be raised where no objections to the validity of the tax assessed against plaintiff had been filed. Dike v. McCormick, 128 Vt. 349, 264 A.2d 769, 1970 Vt. LEXIS 231 (1970).

Filing with town clerk of objection to the validity of assessment of taxes assessed on a grand list is a prerequisite to the raising of any defense in any suit for recovery of the tax under § 5221 of this title, which section authorizes an action by a municipality against a taxpayer to recover taxes. Braune v. Town of Rochester, 126 Vt. 527, 237 A.2d 117, 1967 Vt. LEXIS 234 (1967).

Taxpayer seeking to enjoin sale of taxpayer’s realty for delinquent taxes was not required to comply with the provisions of this section, since taxpayer’s action did not contest the validity of the tax, but the assessment of the property. Braune v. Town of Rochester, 126 Vt. 527, 237 A.2d 117, 1967 Vt. LEXIS 234 (1967).

This section and § 5291 of this title require that an objection to the validity of assessment of taxes be filed with the town clerk as a prerequisite to the raising of any defense in suit by municipality under § 5221 of this title to recover the tax. City of Winooski v. Matte, 125 Vt. 463, 218 A.2d 458, 1966 Vt. LEXIS 210, 1966 Vt. LEXIS 211 (1966).

Equitable relief.

Filing objections under this section to the validity of the tax assessed would not afford legal relief, precluding relief in equity, to landowners being taxed on their land by each of two towns as result of boundary dispute, because the validity of the taxing procedure was not involved. Poulin v. Town of Danville, 128 Vt. 161, 260 A.2d 208, 1969 Vt. LEXIS 219 (1969).

Estoppel.

Failure of town listers to notify plaintiff that contested taxes assessed of their decision following meeting of listers and plaintiff to discuss the matter, contrary to lister’s assurance, estopped town from resisting plaintiff’s suit in equity for declaratory judgment on the ground that the tax appeal procedure of § 4404 of this title provided plaintiff with an adequate and unexhausted remedy. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 129 Vt. 1, 270 A.2d 584, 1970 Vt. LEXIS 194 (1970).

That property of taxpayer contesting assessment had been at same amount for past twenty years without formal challenge of assessment did not, assuming the assessment was invalid, give town a prescriptive right to continue assessing the property at the same amount and receive a greater amount of taxes than it was entitled to. Village of Morrisville Water & Light Dept. v. Town of Hyde Park, 129 Vt. 1, 270 A.2d 584, 1970 Vt. LEXIS 194 (1970).

Limitations period.

The limitations period of subsec. (a) did not apply in an action by a company seeking a refund for sewer bill overpayments it made to a city. Brookside Memorials, Inc. v. Barre City, 167 Vt. 558, 702 A.2d 47, 1997 Vt. LEXIS 111 (1997) (mem.).

Standing.

Although under this section a taxpayer must file objections to the validity of the tax assessed against the taxpayer in order to have standing to contest the same, such as where a taxpayer claims the tax is invalid as a constitutional matter because of unequal assessment and collection, or where a taxpayer asserts that the grand list is invalid because of the listers’ noncompliance with relevant statutes, no such objections need be filed where the action is not one brought under § 5291 of this title, which questions the validity of the tax, but is one questioning the assessment of property. Hojaboom v. Town of Swanton, 141 Vt. 43, 442 A.2d 1301, 1982 Vt. LEXIS 471 (1982).

Cited.

Cited in Rooney Vermont Associates v. Town of Pownal, 140 Vt. 150, 436 A.2d 733, 1981 Vt. LEXIS 574 (1981).

§ 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.

HISTORY: Amended 1957, No. 219 , § 2, eff. July 1, 1961.

History

Source.

V.S. 1947, § 869. 1939, No. 25 , § 4.

Amendments

—1957. “Appraisal” substituted for “quadrennial appraisal”.

§ 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.

HISTORY: Amended 1959, No. 218 , § 1.

History

Source.

V.S. 1947, § 871. 1939, No. 25 , § 5.

Revision note—

Words “at law or in equity” in first para. were deleted inasmuch as V.R.C.P. Rule 2, effective July 1, 1971, provided for “one form of action to be known as ‘civil action’ ”.

Amendments

—1959. Provided a one year time limitation, instead of six months for a resident and one year for a nonresident.

ANNOTATIONS

Action barred.

Plaintiffs’ suit seeking to void the tax collector’s deeds on the grounds that tax collector failed to record a report of tax collector’s doings was a challenge to the tax collector’s procedural steps in collecting the tax, and thus was barred under the one-year limitation period for taxpayer suits because plaintiffs commenced their action more than a year after the levy. Billewicz v. Town of Fair Haven, 2021 VT 20, 254 A.3d 194, 2021 Vt. LEXIS 26 (Vt. 2021).

Action to void tax collector’s deed to property was barred by statute of limitations where the action was commenced more than one year after the levy. Turner v. Spera, 140 Vt. 19, 433 A.2d 307, 1981 Vt. LEXIS 548 (1981).

Commencement of action.

This section and § 5295 of this title apply only to commencement of an action and not to right to defend against suit for possession of property. Peterson v. Moulton, 120 Vt. 439, 144 A.2d 717, 1958 Vt. LEXIS 122 (1958).

Relationship to Other Statutes.

Statute limiting actions by a grantee in possession covers all actions for the recovery of land filed against the grantee of those lands in a tax collector’s deed. But it and the statute imposing a one-year time limitation on taxpayer suits are harmonized by the conclusion that the latter statute creates a carve-out for situations in which the asserted basis for recovery of land is invalidity of the actions of the tax collector relating to the collection of the tax. Billewicz v. Town of Fair Haven, 2021 VT 20, 254 A.3d 194, 2021 Vt. LEXIS 26 (Vt. 2021).

§ 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.

HISTORY: Amended 1959, No. 218 , § 4.

History

Source.

V.S. 1947, § 872. 1939, No. 25 , § 6.

Amendments

—1959. Changed “six months” to “one year” and inserted in subdiv. (4) “to a town or subdivision thereof”.

ANNOTATIONS

Generally.

Action to void tax collector’s deed to property was barred by statute of limitations where the action was commenced more than one year after the levy. Turner v. Spera, 140 Vt. 19, 433 A.2d 307, 1981 Vt. LEXIS 548 (1981).

Cited.

Cited in West v. Village of Morrisville, 728 F.2d 130, 1984 U.S. App. LEXIS 25445 (2d Cir. 1984).

Chapter 135. Education Property Tax

§ 5400. Statutory purposes.

  1. 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.
  2. The statutory purpose of the exemption for municipalities hosting large power plants in subsection 5402(d) of this title is to compensate businesses and residents of the community hosting a nuclear power facility.
  3. 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 low- and moderate-income Vermonters 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.
  4. 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.
  5. 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.
  6. The statutory purpose of the large power plants alternative tax method in subdivision 5401(10)(B) of this title is to provide an alternative to the traditional valuation method for a unique property.
  7. 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.
  8. 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.
  9. 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.

HISTORY: Added 2013, No. 200 (Adj. Sess.), § 16; amended 2017, No. 73 , § 10, eff. June 13, 2017.

History

Amendments

—2017. Subsec. (i): Added.

§ 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:
    1. 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;
    2. determine the median of the ratios calculated in subdivision (A) of this subdivision (1);
    3. determine the absolute deviation of each ratio from the median ratio calculated in subdivision (B) of this subdivision (1); and
    4. 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”:
    1. “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.
    2. 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.
    3. 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.
    4. A dwelling owned by a trust may qualify as a homestead if it meets the requirements of subsection 6062(e) of this title.
      1. 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. (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.
      2. 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.
    5. 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.
    6. 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.
    7. 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.
  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:
    1. Property that is exempt from the municipal property tax by law and not by vote of the municipality.
    2. Property that is subject to the tax on railroads imposed by chapter 211, subchapter 2 of this title, the tax on telephone companies imposed by chapter 211, subchapter 6 of this title, or the tax on electric generating plants imposed by chapter 213 of this title.
    3. Homesteads declared in accordance with section 5410 of this title.
    4. 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:
      1. 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
      2. gas distribution lines (except aboveground meters, regulators and gauges, and leased water heaters are excluded personal property).
    5. 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 .
    6. Property owned by a municipality that is located within that municipality and that is used for municipal purposes, including the provision of utility services.
    7. Machinery and equipment used directly in the processing of whey, whether or not such machinery or equipment is attached or affixed to real property.
    8. , (I)[Repealed.]

      (J) Buildings and fixtures of:

      1. wind-powered electric generating facilities taxed under section 5402c of this title; and
      2. 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.
  12. “Excess spending” means:
    1. The per-equalized-pupil 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) .
    2. In excess of 121 percent of the statewide average district education spending per equalized pupil 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 education spending per equalized pupil for fiscal year 2015 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 2015 through the fiscal year for which the amount is being determined.
    1. “Education property tax spending adjustment” means the greater of one or a fraction in which the numerator is the district’s education spending plus excess spending, per equalized pupil, for the school year, and the denominator is the property dollar equivalent yield for the school year, as defined in subdivision (15) of this section. (13) (A) “Education property tax spending adjustment” means the greater of one or a fraction in which the numerator is the district’s education spending plus excess spending, per equalized pupil, for the school year, and the denominator is the property dollar equivalent yield for the school year, as defined in subdivision (15) of this section.
    2. “Education income tax spending adjustment” means the greater of one or a fraction in which the numerator is the district’s education spending plus excess spending, per equalized pupil, 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.
  13. “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.
  14. “Property dollar equivalent yield” means the amount of spending per equalized pupil that would result if the homestead tax rate were $1.00 per $100.00 of equalized education property value, and the statutory reserves under 16 V.S.A. § 4026 and section 5402b of this title were maintained.
  15. “Income dollar equivalent yield” means the amount of spending per equalized pupil that would result if the income percentage in subdivision 6066(a)(2) of this title were 2.0 percent, and the statutory reserves under 16 V.S.A. § 4026 and section 5402b of this title were maintained.

HISTORY: 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.

History

Revision note

—2021. In subdiv. (7)(B), substituted “26 U.S.C § 501(c)(3)” for “20 U.S.C § 501(c)(3)” to correct an error in the reference.

—2019. Subdiv. (5): Substituted “credited” for “adjusted” and “credit” for “adjustment” in accordance with 2019, No. 51 , § 33(1).

Subdiv. (7)(A): Substituted “property tax credit” for “property tax adjustment” in accordance with 2019, No. 51 , § 33(1).

Subdivs. (6), (10) and (11): Substituted “nonhomestead” for “nonresidential” in accordance with 2019, No. 46 , § 2.

—2013. In subdiv. (14), deleted “but not limited to” following “including” in accordance with 2013, No. 5 , § 4.

—2007. Subdiv. (12)(A)(iii), as added by 2007, No. 66 , § 25, was redesignated as subdiv. (12)(A)(iv) to avoid conflict with subdiv. (12)(A)(iii) as added by 2007, No. 82 , § 21.

—2003. Subdivs. (1) and (2) of 32 V.S.A. § 5402(d) redesignated as 32 V.S.A. § 5401(10)(H) and (I) to conform to the introductory language in the former 5402(d), which read: “(d) The following shall also be excluded from the definition of ‘nonresidential real property’ as set out in section 5401(10) of this title and exempted from the statewide education property tax grand list:”.

Amendments

—2021. Subdiv. (7)(A): Act No. 20 deleted “property tax” preceding “credit”.

Subdiv. (10)(J)(ii): Act No. 54 inserted “and energy storage facilities” following “power”.

—2019. Subdiv. (7)(A): Act No. 51 inserted “is” preceding “rented and occupied”.

Subdiv. (7)(E): Act No. 51 added the subdiv. (7)(E)(i) designation and inserted “by a” preceding “shareholder” in that subdivision and added subdiv. (7)(E)(ii).

Subdiv. (10): Act No. 46 substituted “Nonhomestead” for “Nonresidential”.

Subdivs. (6) and (11): Act 46 substituted “nonhomestead” for “nonresidential”.

—2015 (Adj. Sess.) Subdivs. (10)(H) and (I): Repealed by Act No. 157.

Subdiv. (12)(B): Act No. 134 substituted “fiscal year 2015” for “fiscal year 2014” twice.

—2015. Subdiv. (7)(A): Amended generally by Act No. 57.

Subdiv. (13): Amended generally by Act No. 46.

Subdivs. (15) and (16): Added by Act No. 46.

—2013 (Adj. Sess.). Subdiv. (7)(A): Act No. 174, § 58 deleted “and occupied” following “dwelling, owned”, and inserted “on April 1 and occupied” following “resident individual” and “for a minimum of 183 days out of the calendar year” following “individual’s domicile”.

Subdiv. (7)(H): Added by Act No. 174, § 58.

Subdiv. (12)(B): Act No. 92 substituted “Secretary of Education” for “commissioner of education” following “determined by the”.

Subdiv. (12)(B): Act No. 174, § 59 substituted “increased by inflation” for “in the prior fiscal year” following “per equalized pupil”, and added the second sentence.

Subdiv. (12)(B): Act No. 174, § 60 substituted “in excess of 121 percent” for “in excess of 123 percent” at the beginning, and also added the second sentence.

Subdiv. (10)(K): Added by Act No. 174, sec. 57.

—2013. Subdiv. (10)(B): Act 73 deleted “the tax on steamboat, car and transportation companies imposed by subchapter 3 of chapter 211 of this title” following “subchapter 2 of chapter 211 of this title”.

Subdiv. (10)(E): Act 80 substituted “such excess valuation of property are committed under 24 V.S.A. § 1894 to finance” for “the excess property valuation are pledged and appropriated for interest and principal repayment on bonded debt or prefunding future” preceding “tax” and “; provided that any increment in excess of the amounts committed shall be distributed in accordance with 24 V.S.A. § 1900 ” for “and to the extent approved for this purpose by the Vermont economic progress council upon application by the district under procedures established for approval of tax stabilization agreements under section 5404a of this title, and that any such action shall be included in the annual authorization limits provided in subdivision 5930a(d)(1) of this title” following “debt”.

Subdiv. (12)(B): Act 60, § 1, effective July 1, 2014, substituted “123” for “125” and substituted “Secretary of Education” for “commissioner of education.”

Subdiv. (12)(B): Act 60, § 2, effective July 1, 2016, substituted “121” for “123.”

—2011 (Adj. Sess.). Subdiv. (10)(J): Act No. 127 added the subdiv. (i) designation and added (ii).

Subdiv. (13): Act No. 143 added the last two sentences.

—2011. Subdiv. (12): Amended generally.

—2007 (Adj. Sess.). Subdiv. (10)(J): Added.

—2007. Subdiv. (12)(A): Act No. 66 substituted “per equalized” for “perequalized” preceding “pupil”.

Subdiv. (12)(B): Act No. 66 inserted “on or before November 15 of each year based on the passed budgets to date” following “education”.

Subdiv. (12)(A)(iii): Added by Act No. 66 and redesignated as (iv).

Subdiv. (12)(A)(iii): Added by Act No. 82.

—2005 (Adj. Sess.). Subdiv. (7)(A): Act No. 94 inserted “or for purposes of the renter property tax adjustment under subsection 6066(b) of this title, rented and occupied by a resident individual as the individual’s domicile” following “individual’s domicile”.

Subdiv. (12)(A)(ii): Act No. 182 amended generally.

—2005. Subdiv. (7)(G): Added.

Subdiv. (12): Amended generally.

—2003 (Adj. Sess.). Subdiv. (7): Amended generally.

Subdiv. (14): Added.

—2003. Subdiv. (7): Amended generally.

Subdiv. (8): Substituted “Education” for “Local education” in two places.

Subdivs. (12), (13): Added.

—2001 (Adj. Sess.) Inserted “ski lifts and snow-making equipment for a ski area” following “equipment” and deleted “that” preceding “this” in subdiv. (10)(D) and deleted subdiv. (10)(D)(iii) which read, “ski lifts and fixtures and snow-making equipment for a ski area affixed to the land excluding transportable equipment.

—2001. Subdiv. (10)(G): Added.

—1999. Subdiv. (1): Amended generally.

Subdiv. (7): Deleted “either two or more rooms or” following “includes” in the last sentence.

—1997 (Adj. Sess.). Act No. 71, in subdiv. (6), deleted “real” after “homestead” near the beginning and “nonresidential” near the end; in subdiv. (7) deleted “or part-year resident individual” after “resident individual” in the first sentence, added the language beginning “including cooperative property” and ending “chapter 14” in the fourth sentence and added “and any sheds used for noncommercial purposes” at the end of the sixth sentence; deleted “in 2001 and after” before “the tax on electric generating plants” in subdiv. (10)(B); added the proviso in subdiv. (10)(D); added subdiv. (10)(F); and added subdiv. (11).

Act No. 156 added the proviso at the end of subdiv. (10)(D)(i).

Effective date of amendments—

2011 (Adj. Sess.). 2011, No. 127 (Adj. Sess.), § 7 provides that the amendment to this section by that act shall take effect January 1, 2013.

1997 (Adj. Sess.) amendment. 1997, No. 71 (Adj. Sess.), § 123(h), provided that the amendment to this section by § 58 of that act (tax increment financing districts; removal of June 10, 1997 grandfather date) shall be effective June 26, 1997.

1999 amendment. 1999, No. 49 , § 38(c) provides that the amendment to subdiv. (7) of this section by § 7 of that act shall apply to claims filed in calendar year 2000 and after.

2001 amendment. 2001, No. 53 , § 2, eff. June 12, 2001, provided in part that this act shall apply to education property tax grand lists for April 1, 2001, and after.

2001 (Adj. Sess.). 2001, No. 144 (Adj. Sess.), § 42(2), as amended by 2003, No. 66 , § 289b, provides that § 3 of that act [which amended subdiv. (10)(D) of this section] “shall apply to grand lists for 2004 and after, and to education property tax assessed for fiscal years 2005 and after; and ski lifts and snow-making equipment for ski areas shall be excluded from grand lists of April 1, 2003 solely for the purpose of determining equalized education grand lists for January, 2004.”

2003 amendments. 2003, No. 68 , § 87(1) provides that “Secs. 1-4 of that act [§ 3 amended this section], relating to education property tax, shall apply to fiscal years 2005 and after; except that all after the first sentence of 32 V.S.A. § 5402(b)(3) shall apply to tax bills issued after April 1, 2005; and except that in Sec. 3, in 32 V.S.A. § 5401(12) , the percentage of the statewide average spending used to calculate the district spending adjustment in fiscal year 2005 shall be 135 percent, and in fiscal year 2006 shall be 130 percent, and in fiscal years 2007 and after shall be 125 percent.”

2003 amendment to subdiv. (8). 2003, No. 68 , § 87(5) provides that § 28 of that act, which amends subdiv. (8) of this section, relating to miscellaneous conforming changes to education property tax provisions, shall apply to fiscal years 2005 and after.

2005 amendment. 2005, No. 38 , § 22(12) provides that: “Secs. 16 [which amends subdiv. (7) by adding (7)(G)], 17, and 18 [homestead tax rate for decedent’s residence] shall apply to homestead declarations related to April 1, 2005, and after”.

2007 amendment. 2007, No. 66 , § 26(d) provides that § 25 of that act [which amends subdiv. (12) of this section] shall take effect on July 1, 2007 and shall apply to budgets approved for the 2007-2008 academic year and after.

2011 amendment. 2011, No. 45 , § 37(16) provides: “Secs. 13c [which amended this section] and 13d [which amended 16 V.S.A. 4001] of this act shall take effect on passage [May 24, 2011] and shall apply to tax rates calculated for fiscal year 2012 school budgets and after.”

2013 amendment. 2013, No. 80 , § 20(b) provides: “Secs. 2 through 9, 11, and 12 (clarification of ambiguous statutes) [which amended this section and 24 V.S.A. §§ 1891 , 1892, 1894-1898 (except Sec. 6(b)), 1900 and 32 V.S.A. § 5404a ] of this act shall apply to any tax increment retained for all taxes assessed on the April 1, 2013 grand list.”

Applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70(16) provides that “Secs. 54 (shared equity housing) [which amended 32 V.S.A. § 3481 ], 55 (health and recreation property) [which amended 32 V.S.A § 3832(7)], 56 (town voted exemption) [which enacted 32 V.S.A. § 3838 ], and 57 (education property tax exemption) [which amended this section] shall take effect on January 1, 2015 and apply to property appearing on grand lists lodged in 2015 and after.”

2013, No. 174 (Adj. Sess.), § 70(17) provides that “Sec. 58 (occupancy of a homestead) [which amended this section] shall take effect on January 1, 2015 and apply to homestead declarations for 2015 and after.”

2013, No. 174 (Adj. Sess.), § 70(18) provides that “Secs. 59 and 60 (occupancy of a homestead) [which amended this section] shall take effect on July 1, 2014 and apply to property tax calculations for fiscal year 2016 and after.”

Applicability of amendment to subdiv. (13) and of subdivs. (15) and (16). 2015, No. 46 , § 52(h) provides that the amendments to this section by that act shall take effect on July 1, 2015 and shall apply to fiscal year 2017 and after.

Applicability of 2015 (Adj. Sess.) amendment. 2015, No. 132 (Adj. Sess.), § 10(3) provides: “Secs. (3) [which added 16 V.S.A. 4001(6)(B)(x)] and 3a [which amended this section] shall take effect on July 1, 2017 and apply to excess spending calculations for fiscal year 2018 and after.”

Uncodified provisions. See 1997, No. 71 (Adj. Sess.), §§ 67, 67a, and 67b for provisions specifying tax rates and establishing limitations on tax rates and on tax reduction benefits.

Statutory revision. 2009, No. 44 , § 19 provides: “Pursuant to its statutory revision authority at 2 V.S.A. § 424 , the legislative council is directed to change the phrase ‘base education payment‘ wherever it may appear in the Vermont Statutes Annotated to ‘base education amount.’ ”

2007, No. 82 , § 22 provides: “Sec. 21 [which amended this section] shall take effect on July 1, 2007 in order to be reflected in the threshold for fiscal year 2009.”

ANNOTATIONS

Cited.

Cited in Town of Killington v. Department of Taxes, 2003 VT 88, 176 Vt. 70, 838 A.2d 91, 2003 Vt. LEXIS 281 (2003); M.T. Associates v. Town of Randolph, 2005 VT 112, 179 Vt. 81, 889 A.2d 740, 2005 Vt. LEXIS 255 (2005).

§ 5402. Education property tax liability.

  1. 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.
    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.
  2. 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 municipality’s most recent common level of appraisal. 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 municipality’s most recent common level of appraisal, 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 municipality’s most recent common level of appraisal, 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.
  3. 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. The Secretary of Education shall determine the 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 no 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. The 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. The municipality may also retain $15.00 for each late property tax credit claim filed after April 15 and before September 2, as notified by the Department of Taxes, for the cost of issuing a new property tax bill.
  4. [Repealed.]
  5. 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 education spending per equalized pupil of the unified union.
    2. For a municipality that is a member of a union school district:
      1. 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 education spending per total equalized pupil in the municipality who attends a school other than the union school.
      2. 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 education spending per equalized pupil of the union school district.
      3. 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 equalized pupils from the member municipality to total equalized pupils of the member municipality; and the ratio of equalized pupils attending a school other than the union school to total equalized pupils of the member municipality. Total equalized pupils 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).

HISTORY: 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.

History

Revision note

—2019. Substituted “nonhomestead” for “nonresidential” throughout the section in accordance with 2019, No. 46 , § 2, eff. Jan. 1, 2020.

Subsec. (c): Substituted “property tax credit” for “property tax adjustment” in the fourth sentence in accordance with 2019, No. 51 , § 33(1).

—2003. Subdivs. (1) and (2) of 32 V.S.A. § 5402(d) redesignated as 32 V.S.A. § 5401(10)(H) and (I) to conform to the introductory language in the former 5402(d) which read: “(d) The following shall also be excluded from the definition of ‘nonresidential real property’ as set out in section 5401(10) of this title and exempted from the statewide education property tax grand list:”

Amendments

—2021. Subsec. (d): Repealed.

—2019. Subsec. (b): Added “Statewide education property” preceding “tax bills” in the third sentence, and added the last sentence. su

—2018 (Sp. Sess.). Subdiv. (b)(2): Amended generally.

—2015. Section amended generally.

—2013 (Adj. Sess.). Subsec. (c): Act No. 92 substituted “Secretary” for “commissioner” throughout the subsection, “one-half” for “one half” twice, and “Department of Taxes” for “department” following “September 2, as notified by the”.

Subsec. (d): Act No. 174 substituted “chapter 213 of this title” for “section 5402a of this chapter” following “subject to the tax under”.

—2009 (Sp. Sess.). Subdiv. (b)(1): Deleted the last sentence.

—2007 (Adj. Sess.). Deleted the former third sentence and rewrote the last sentence in subdiv. (b)(1) and substituted “based on grand list information received by the commissioner no later than the March 15 prior to the June 1 net payment. Payment” for “and payment” in the second sentence and added the last sentence in subsec. (c).

—2007. Subdiv. (b)(1): Act No. 82 added the present fifth sentence.

Subdiv. (b)(2): Act No. 33 deleted the second sentence.

Subsec. (c): Act No. 65 substituted “0.225” for “one-eighth” preceding “of one percent” in the third sentence.

—2005 (Adj. Sess.). Subdiv. (b)(3): Inserted “and the deadline for reconsideration has passed” following “adopted”.

Subdiv. (e)(2)(C): Inserted “from the member municipality” following “pupils” in the first sentence.

—2003 (Adj. Sess.). Act No. 76 rewrote subsec. (b) and deleted former subsec. (d).

Act No. 80 added new subdiv. (b)(3) and subsec. (d).

Act No. 130 added the second sentence in subdiv. (a)(2) and added subsec. (e).

—2003. Subsec. (a): Amended generally by Act No. 68, § 76.

Act No. 68, § 4 amended section generally.

—2001 (Adj. Sess.) Subsec. (a): Deleted “but the homestead property tax liability shall not exceed the adjusted liability for eligible claimants under chapter 154 of this title” at the end.

—2001. Subsec. (c): Added “notwithstanding sections 182 and 461 of this title” preceding “any” at the beginning of the fourth sentence.

—1999. Subsec. (a): Act No. 49 inserted “shall not exceed the adjusted liability” following “tax liability” and deleted the text beginning “shall not exceed” and ending “by $15,000.00” at the end of the subsection.

Subsec. (b): Amended generally by Act No. 1.

—1997 (Adj. Sess.). Subsec. (a): Deleted “tax grand list” before “value” near the beginning.

Subsec. (b): Rewrote the third sentence, adding the provision for nonresidential property at the end; inserted “and collected” in the fourth sentence; and rewrote the last sentence, which had required nonresidential property taxes to be collected under chapter 133 of this title and homesteads to be assessed without regard to the adjustment under chapter 154 of this title.

Subsec. (d): Added.

Effective date of amendments—

1997 (Adj. Sess.). 1997, No. 71 (Adj. Sess.), § 123(a) makes the amendment of subsec. (a) retroactive to Jan. 1, 1998; §§ 81(b) and 123(g) make the addition of subsec. (d) effective July 1, 1998; and §§ 81(e) and 123(m) make the amendment of subsec. (b) effective Jan. 1, 1999.

2003. 2003, No. 68 , § 87(1) provides that “Secs. 1-4 of that act [Sec. 4 amends this section], relating to education property tax, shall apply to fiscal years 2005 and after; except that all after the first sentence of 32 V.S.A. § 5402(b)(3) shall apply to tax bills issued after April 1, 2005; and except that in Sec. 3, in 32 V.S.A. § 5401(12) , the percentage of the statewide average spending used to calculate the district spending adjustment in fiscal year 2005 shall be 135 percent, and in fiscal year 2006 shall be 130 percent, and in fiscal years 2007 and after shall be 125 percent.”

2003, No. 76 (Adj. Sess.). 2003, No. 76 (Adj. Sess.), § 33(1), eff. Feb. 17, 2004, with transition rules.

2003, No. 80 (Adj. Sess.) 2003, No. 80 (Adj. Sess.), § 90(a), eff. March 8, 2004, provided in part that § 49c of that act, which added subsec. (d), shall apply to fiscal years 2005 and after.

2007, No. 33 amendment. 2007, No. 33 , § 12(3), provides in part that § 11 of that act, which amended subsec. (b)(2) of this section, shall apply to claims filed in 2007 and after.

2007, No. 65 amendment. 2007, No. 65 , § 299(g), provides in part that § 289 of that act, which amends subsec. (c) of this section, shall apply to fiscal year 2009.

2007 (Adj. Sess.) amendment to subsec. (b). 2007, No. 190 (Adj. Sess.), § 102(1), provides: “Sec. 10 [which amended subsec. (b)] (property tax bill notice on education spending and rates) shall apply to property tax bills for 2008 and after.”

2007, No. 190 (Adj. Sess.) amendment. 2007, No. 190 (Adj. Sess.), § 102(2), provides: “Sec. 11 provisions regarding final date for grand list information used in net education tax calculation shall take effect July 1, 2008; and Sec. 11 provisions regarding town retention of $15.00 late fee for property tax adjustment claims shall apply to claims filed in 2008 and after.”

2009 amendment of subdiv. (b)(1). 2009, No. 1 (Sp. Sess.), § H.58(2) provides that H.23 [which amended subdiv. (b)(1) of this section] shall apply to homestead property tax bills mailed in 2009 and after.

2012 education property taxes. 2011, No. 45 , § 37(2) provides: “Sec. 4 (fiscal year 2012 property tax rates) and Sec. 5 (fiscal year 2012 base education payment amount) shall apply to fiscal year 2012 education property taxes.”

Applicability of section. 2015, No. 46 , § 52(h) provides that the amendments to this section shall take effect on July 1, 2015 and shall apply to fiscal year 2017 and after.

Effective date and applicability of 2018 (Sp. Sess.) amendment. 2018, No. 11 (Sp. Sess.), § H.31(a)(5) provides: “Secs. H.12-H.13 (municipal and education super-circuitbreaker and credit limits) [which amended 32 V.S.A. §§ 6066 and 6067] and H.14-H.15 (property tax bill requirements) [which amended this section and 32 V.S.A. § 6066a ] shall take effect on July 1, 2019 and apply to fiscal year 2020 and after.”

Property dollar equivalent yield, and nonresidential rate for fiscal year 2019. 2018, No. 11 (Sp. Sess.), § H.10 provides: “(a) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2019 only, the property dollar equivalent yield shall be $10,220.00.

“(b) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2019 only, the income dollar equivalent yield shall be $12,380.00.

“(c) Notwithstanding any other provision of law, the nonresidential rate for fiscal year 2019 shall be $1.58 per $100.00 of equalized education property value under 32 V.S.A. § 5402(a)(1) .”

Property dollar equivalent yield, and nonresidential rate for fiscal year 2020. 2019, No. 46 , § 6 provides: “(a) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2020 only, the property dollar equivalent yield shall be $10,648.00.

“(b) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2020 only, the income dollar equivalent yield shall be $13,081.00.

“(c) Notwithstanding any other provision of law, the nonresidential rate for fiscal year 2020 shall be $1.594 per $100.00 of equalized education property value under 32 V.S.A. § 5402(a)(1) .

“(d) Notwithstanding any other provision of law, when making recommendations for fiscal year 2021 under 32 V.S.A. § 5402b , the Commissioner shall disregard any undesignated surplus in the Education Fund.”

Property dollar equivalent yield, income dollar equivalent yield, and nonhomestead rate for fiscal year 2021. 2019, No. 122 (Adj. Sess.), § 1 provides: “(a) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2021 only, the property dollar equivalent yield shall be $10,998.00.

“(b) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2021 only, the income dollar equivalent yield shall be $13,535.00.

“(c) Notwithstanding any other provision of law, the nonhomestead rate for fiscal year 2021 shall be $1.628 per $100.00 of equalized education property value under 32 V.S.A. § 5402(a)(1) .”

Property dollar equivalent yield, income dollar equivalent yield, and nonhomestead rate for fiscal year 2022. 2021, No. 73 , § 17 provides: “(a) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2022 only, the property dollar equivalent yield shall be $11,317.00.

“(b) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2022 only, the income dollar equivalent yield shall be $13,770.00.

“(c) Notwithstanding 32 V.S.A. § 5402(a)(1) and any other provision of law to the contrary, the tax rate for nonhomestead property for fiscal year 2022 shall be $1.612 per $100.00 of equalized education property value.”

ANNOTATIONS

Phase-in provision.

For purposes of phase-in provision applicable to statewide education property tax, State’s methodology for calculating town’s municipal budget growth from fiscal year 1998 to fiscal year 1999, which applied a consistent definition for the term “municipal budget” from one fiscal year to the next, comported with the Legislature’s intent to limit the amount of municipal budget growth that can be considered in calculating the 40 percent cap on increased taxes resulting from Equal Educational Property Act of 1997. Town of Killington v. State, 172 Vt. 182, 776 A.2d 395, 2001 Vt. LEXIS 143 (2001).

Cited.

Cited in Schievella v. Department of Taxes, 171 Vt. 591, 765 A.2d 479, 2000 Vt. LEXIS 310 (2000); Town of Killington v. Department of Taxes, 2003 VT 88, 176 Vt. 70, 838 A.2d 91, 2003 Vt. LEXIS 281 (2003) (mem.).

§ 5402a. Repealed. 2011, No. 143 (Adj. Sess.), § 57.

History

Former § 5402a. Former § 5402a, relating to electric generating plant education property tax, was derived from 1999, No. 49 , § 89, was amended by 2003, No. 50 , § 2, and was effective for taxes due in 2005 and after.

§ 5402b. Statewide education tax yields; recommendation of the Commissioner.

  1. Annually, no 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; and
    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.
  2. 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.
  3. 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.

HISTORY: 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.

History

Revision note

—2019. Subdiv. (a)(4): Substituted “nonhomestead” for “nonresidential” in accordance with 2019, No. 46 , § 2, eff. Jan. 1, 2020.

Subdiv. (a)(4): Substituted “credit” for “adjustment” in accordance with 2019, No. 51 , § 33(2).

Amendments

—2018 (Sp. Sess.). Subdiv. (a)(4): Substituted “average” for “median” preceding “education” throughout the subdivision and inserted “and” following “property”.

Subsec. (b): Amended generally.

—2015 (Adj. Sess.) Subsec. (c): Added.

—2015. Subsecs. (a) and (b): Amended generally.

—2013 (Adj. Sess.). Subsec. (a): Act No. 92 substituted “Agency of Education, the Secretary of Administration, and the Joint Fiscal Office” for “department of education, the secretary of administration and the joint fiscal office” following “consultation with the”.

Subsec. (b): Act No. 174 substituted “1.94 percent” for “1.8 percent” at the end.

—2009 (Adj. Sess.) Subsec. (c): Added.

—2005 (Adj. Sess.). Subsec. (b): Added “but the applicable percentage base shall not be adjusted below 1.8 percent” following “title”.

Property dollar equivalent yield, and nonresidential rate for fiscal year 2019. 2018, No. 11 (Sp. Sess.), § H.10 provides: “(a) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2019 only, the property dollar equivalent yield shall be $10,220.00.

“(b) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2019 only, the income dollar equivalent yield shall be $12,380.00.

“(c) Notwithstanding any other provision of law, the nonresidential rate for fiscal year 2019 shall be $1.58 per $100.00 of equalized education property value under 32 V.S.A. § 5402(a)(1) .”

Property dollar equivalent yield, and nonresidential rate for fiscal year 2020. 2019, No. 46 , § 6 provides: “(a) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2020 only, the property dollar equivalent yield shall be $10,648.00.

“(b) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2020 only, the income dollar equivalent yield shall be $13,081.00.

“(c) Notwithstanding any other provision of law, the nonresidential rate for fiscal year 2020 shall be $1.594 per $100.00 of equalized education property value under 32 V.S.A. § 5402(a)(1) .

“(d) Notwithstanding any other provision of law, when making recommendations for fiscal year 2021 under 32 V.S.A. § 5402b , the Commissioner shall disregard any undesignated surplus in the Education Fund.”

Property dollar equivalent yield, income dollar equivalent yield, and nonhomestead rate for fiscal year 2021. 2019, No. 122 (Adj. Sess.), § 1 provides: “(a) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2021 only, the property dollar equivalent yield shall be $10,998.00.

“(b) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2021 only, the income dollar equivalent yield shall be $13,535.00.

“(c) Notwithstanding any other provision of law, the nonhomestead rate for fiscal year 2021 shall be $1.628 per $100.00 of equalized education property value under 32 V.S.A. § 5402(a)(1) .”

Property dollar equivalent yield, income dollar equivalent yield, and nonhomestead rate for fiscal year 2022. 2021, No. 73 , § 17 provides: “(a) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2022 only, the property dollar equivalent yield shall be $11,317.00.

“(b) Pursuant to 32 V.S.A. § 5402b(b) , for fiscal year 2022 only, the income dollar equivalent yield shall be $13,770.00.

“(c) Notwithstanding 32 V.S.A. § 5402(a)(1) and any other provision of law to the contrary, the tax rate for nonhomestead property for fiscal year 2022 shall be $1.612 per $100.00 of equalized education property value.”

§ 5402c. Wind-powered electric generating facilities tax.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

HISTORY: Added 2007, No. 92 (Adj. Sess.), § 25; amended 2011, No. 127 (Adj. Sess.), § 5, eff. Jan. 1, 2013.

History

Amendments

—2011 (Adj. Sess.) Subsec. (a): Substituted “one megawatt” for “five megawatts”.

Effective date of amendments—

2011 (Adj. Sess.) 2011, No. 127 (Adj. Sess.), § 7 provides that the amendment to this section by that act shall take effect January 1, 2013.

Municipal property taxed unaffected. 2007, No. 92 (Adj. Sess.), § 26, provides: “Application of alternative education property tax to a wind-powered electric generating facility under 32 V.S.A. § 5402c shall have no effect upon the assessment of municipal taxes upon that facility by any municipality in this state.”

§ 5403. Assessment districts.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

HISTORY: Added 2019, No. 51 , § 26.

History

Former § 5403. Former § 5403, relating to assessment, adjustment, and payment of homestead education property tax was derived from 1997, No. 60 , § 45 and amended by 1997, No. 71 (Adj. Sess.), § 9 and No. 71, Adj. Sess.), § 62. This section was repealed by 1999, No. 1 , § 60g(a), eff. Mar. 31, 1999.

Effective date. Addition of this section by 2019, No. 51 takes effect July 1, 2019 and applies to grand lists lodged after that date pursuant to No. 51, § 41(5).

§ 5404. Determination of education property tax grand list.

  1. 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.
  2. 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; 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.
  3. 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.
  4. Municipalities shall include, on all property tax bills, the parcel identification number prescribed in subsection (b) of this section.

HISTORY: 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.

History

Revision note

—2019. Subsec. (a): Substituted “nonhomestead” for “nonresidential” in accordance with 2019, No. 46 , § 2, eff. Jan. 1, 2020.

Amendments

—2013 (Adj. Sess.). Subsec. (c): Substituted “Secretary of Education” for “commissioner of education” preceding “, who shall withhold”, “either” for “the” following “except from wondering”, and deleted “or commissioner” preceding “has an opinion”.

—2009 (Adj. Sess.) Subsec. (b): Inserted “or other” following “electronic” in the first sentence.

—2003. Subsec. (a): Substituted “housesite” for “homestead” in two places.

—2001 (Adj. Sess.) Subsec. (b): Substituted “August 15” for “July 15” in the first sentence.

—2001. Designated the existing provisions of the section as subsec. (a) and added subsecs. (b)-(d).

Effective date of amendments—

2001. 2001, No. 63 , § 283(c), provided in part that § 163a of that act, which amended this section, shall take effect for fiscal years 2004 and thereafter.

Applicability of 2003 amendment to subsec. (a). 2003, No. 68 , § 87(5) provides that § 29 of that act, which amends subsec. (a) of this section, relating to miscellaneous conforming changes to education property tax provisions, shall apply to fiscal years 2005 and after.

ANNOTATIONS

Common level of appraisal.

Towns are statutorily required to submit fair market values to the Division of Property Valuation and Review (PVR), which then uses these values to arrive at a “common level of appraisal” (CLA) ratio. There was no indication that a town did anything but what it was statutorily required to do—that is, submit its grand list values to the PVR; therefore, it was entirely reasonable for the town and the trial court to rely on the CLA derived from statewide equalization studies. Boivin v. Town of Addison, 2010 VT 67, 188 Vt. 571, 5 A.3d 897, 2010 Vt. LEXIS 65 (2010) (mem.).

§ 5404a. Tax stabilization agreements; tax increment financing districts.

  1. 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:
      1. 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
      2. 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 which 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 which 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. The certificate of exemption may be renewed once after 10 years if VHFA finds that the property continues to meet the requirements of this subsection.
  2. 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.
  3. 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.
  4. 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.
  5. [Repealed.]
  6. 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:
      1. The districts listed in 24 V.S.A. § 1892(d) shall not be counted against the limits imposed in this subdivision (2).
      2. 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. If, while the General Assembly is not in session, the Council receives applications for districts that would otherwise qualify for approval but, if approved, would exceed the six-district limit in the State, the Council shall make one or more presentations to the Emergency Board concerning the applications, and the Emergency Board may, in its discretion, increase the six-district limit.
      1. 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 . (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.
      2. 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.
  7. 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 and 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.
  8. To approve utilization of incremental revenues pursuant to subsection (f) of this section, the Vermont Economic Progress Council shall do all the following:
      1. 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. (1) (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.
      2. The review shall take into account:
        1. 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;
        2. 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
          1. 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.

    1. Process requirements.   Determine that each application meets all of the following four requirements:
      1. The municipality held public hearings and established a tax increment financing district in accordance with 24 V.S.A. §§ 1891-1900 .
      2. 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.
      3. 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.
      4. 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.
    2. Location criteria.   Determine that each application meets at least two of the following three criteria:
      1. The development is:
        1. compact;
        2. high density; or
        3. located in or near existing industrial areas.
      2. The proposed district is within an approved growth center, designated downtown, designated village center, new town center, or neighborhood development area.
      3. 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:
        1. 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;
        2. 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
        3. 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.
    3. Project criteria.   Determine that the proposed development within a tax increment financing district will accomplish at least three of the following five criteria:
      1. The development within the tax increment financing district clearly requires substantial public investment over and above the normal municipal operating or bonded debt expenditures.
      2. The development includes new or rehabilitated affordable housing, as defined in 24 V.S.A. § 4303 .
      3. 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.
      4. 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.
      5. The development will enhance transportation by creating improved traffic patterns and flow or creating or improving public transportation systems.
        1. 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.

    4. 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:

  9. an audit shall be conducted on or after October 1, 2021;
  • 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.

  • HISTORY: 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.

    History

    References in text.

    The reference to 24 V.S.A § 1897, referred to in subdiv. (h)(2)(a), was repealed by 2013, No. 80 , § 7.

    Revision note

    —2019. Subsec. (b): Substituted “nonhomestead” for “nonresidential” in accordance with 2019, No. 46 , § 2, eff. Jan. 1, 2020.

    Amendments

    —2021. Subsec. ( l ): Act No. 74 deleted “according to a schedule, which will be arrived at in consultation with the Vermont Economic Progress Council” at the end of the first sentence and added “pursuant to subsection 168(b) of this title” at the end of the second sentence.

    Subdiv. ( l )(A): Act No. 73 added the subdiv. (A) designation; deleted “, except that for the Milton Catamount/Husky district and the Burlington Waterfront district only a final audit shall be conducted to cover the period from the effective date of the rules pursuant to subdivision (j)(1) of this section to the end of the retention period” in subdiv. (1)(A); and added subdiv. (1)(B).

    —2019. Subsec. (a): Deleted the first sentence.

    Subsec. (h): Deleted “Criteria for approval.” at the beginning of the introductory paragraph.

    Subsec. (j): Deleted the introductory paragraph.

    —2017 (Adj. Sess.). Subsec. (i): Deleted “and on Finance” following “Housing and General Affairs” in the first sentence, deleted “of the General Assembly” preceding “on or before April 1”, and added the last sentence.

    —2017. Subsecs. (f) and (h): Amended generally.

    —2015 (Adj. Sess.). Subdiv. (a)(2): Amended generally.

    Subdiv. (a)(3): Amended generally.

    Subsec. (b): Amended generally.

    Subdiv. (c)(1): Amended generally.

    Subdiv. (c)(2): Substituted “forestland” for “forest land” preceding “open space”.

    Subdiv. (c)(3): Amended generally.

    —2015. Subdiv. (a)(6): Act No. 57 rewrote the fifth sentence and added the sixth sentence.

    Subsec. (i): Act No. 11 substituted “measures” for “indicators” following “set of performance” in the second sentence.

    —2013 (Adj. Sess.). Subdiv. (j)(2)(A): Substituted “on questions and inquiries concerning” for “regarding questions and inquiries about” following “decisions to a municipality”.

    Subdiv. (j)(2)(B): Inserted “written” following “Council and issue a final”, and substituted “receipt of the recommendations” for “recommendation” at the end of the fourth sentence.

    Subdiv. ( l )(1): Inserted “, except that for the Milton Catamount/Husky district and the Burlington Waterfront district only a final audit shall be conducted to cover the period from the effective date of the rules pursuant to subdivision (j)(1) of this section to the end of the retention period” at the end.

    Subdiv. ( l )(2): Substituted “five years after the first debt is incurred and a second audit seven years after completion of the first audit” for “at the end of the 10-year period in which debt can be incurred and again approximately halfway through the 20-year period for retention of education increment; provided, however, that an audit shall occur no more than one time in a five-year period” at the end of the first sentence.

    —2013. Subsec. (g): Amended generally.

    Subdiv. (h)(1): Deleted the former second sentence.

    Subsec. (i): Amended generally.

    Subsec. (j): Rewrote the subsec.

    Subsec. (k): Substituted “Council” for “board” preceding “to pay”.

    Subsec. ( l ): Rewrote the subsec.

    —2011. Subsec. ( l ): Inserted “conduct an” preceding “audit”, “of ” following “audit”; substituted “four” for “three” preceding “years”; inserted “and bill back to the municipality the charge for the audit” following “years” and added the second and third sentences.

    —2009. Subsec. (k): Added present subsec. (k), redesignated former subsec. (k) as present subsec ( l ).

    —2007 (Adj. Sess.). Subsec. (e): Repealed.

    Subsec. (f): Substituted “financing of” for “debt issued to finance” following “repayment of” and inserted “pursuant to 24 V.S.A. § 1894 ” following “20 years”.

    Subsec. (g): Deleted references to subsec. (e).

    Subdiv. (h)(1)(C): Substituted “financing incurred for development of the tax increment financing district” for “the municipal tax increment bonds”.

    Subdiv. (h)(4): Substituted “increment” for “incentive” preceding “financing district”.

    Subdiv. (h)(4)(C): Substituted “remediation” for “mitigation” preceding “and redevelopment”.

    Subsecs. (j) and (k): Added.

    —2007. Subsec. (b): Inserted “subject to the provisions of subsection 5930(f) of this title” at the end of the first sentence.

    Subsec. (e): Deleted “for up to ten years” following “value” in the first sentence and added the present second sentence.

    —2005 (Adj. Sess.). Subsec. (e): Added “Allocations” preceding “A municipality”; inserted “on behalf of a person” following “municipality”; substituted “subsections 5930a(c) and (d)” for “section 5930a”, “for” for “to support economic development through the purchase or financing of” preceding “infrastructure” and “that includes” for “including, but not limited to” following “infrastructure” and inserted “telecommunications and” preceding “utility”.

    Subsec. (f): Rewrote the subsec.

    Subsecs. (g)-(i): Added.

    —2003 (Adj. Sess.). Subsec. (a): Act No. 163 inserted “and exemptions” following “agreements” in the first sentence and “or exemption” following “agreement” in two places in the second sentence of the introductory paragraph.

    Subdiv. (a)(6): Added by Act No. 76.

    Act No. 163 substituted “parcel” for “building” following “unit” in the first sentence, rewrote the second sentence, and substituted “units” for “unit building” preceding “means” and “residential rental” for “a building containing” thereafter in the third sentence.

    —1997 (Adj. Sess.). In subsec. (a), substituted the first sentence and the words “A tax agreement” for “Tax stabilization agreements”; in subdiv. (a)(1)(A) substituted “a tax stabilization agreement for any purpose authorized” for “an agreement”; in subdiv. (a)(2) substituted “a tax stabilization agreement relating to industrial or commercial property” for “an agreement”; substituted “Vermont economic progress council” for “general assembly” throughout the section; added subsecs. (c), (d) and (e) and redesignated the former subsec. (c) as subsec. (f); and made numerous other changes.

    2003 (Adj. Sess.) amendment. 2003, No. 163 (Adj. Sess.), § 49(g), provided that the amendments to subsec. (a) and subdiv. (a)(6) shall be retroactive to January 1, 2004.

    Retroactive effective date. 2011, No. 45 , § 37(15) provides: “Sec. 15b (Milton TIF) shall apply retroactively to July 1, 2008.”

    2015 amendment. 2015, No. 57 , § 99(9) provides that notwithstanding 1 V.S.A. § 214, the amendment to subdiv. (a)(6) by that act shall take effect retroactively on January 1, 2014.

    2007 amendment. 2007, No. 81 , § 22, provides in part that §§ 12 and 13 of that act, which amended this section, shall apply to claims filed in 2007 and after.

    Applicability of 2011 amendment. 2011, No. 45 , § 37(12) provides: “Sec. 15a [which amended this section] (tax increment audits) shall apply only to audits initiated by the state auditor of accounts after January 1, 2012.”

    Applicability of 2013 amendment. 2013, No. 80 , § 20(b) provides: “Secs. 2 through 9, 11, and 12 (clarification of ambiguous statutes) [which amended this section and 24 V.S.A. §§ 1891 , 1892, 1894-1898 (except Sec. 6(b)), 1900 and 32 V.S.A. § and 5404a] of this act shall apply to any tax increment retained for all taxes assessed on the April 1, 2013 grand list.”

    Implementation. 2017, No. 69 , § J. 5 provides: “Secs. J.1- J.4 [which amended this section, 24 V.S.A. § 1892 and 24 V.S.A. § 1894 ] of this act shall apply only to tax increment financing district applications filed, and districts approved, on or after the date of passage of this act [June 8, 2017].”

    VEGI; Annual calendar year caps. 2005, No. 184 (Adj. Sess.), § 11 provides: “(a) Net negative awards cap. Notwithstanding any other provision of law, in any calendar year, the annual authorization for the total net fiscal cost of Vermont employment growth incentives that the Vermont economic progress council or the economic incentive review board may approve under 32 V.S.A. § 5930b(b)(5) shall not exceed $1,000,000.00 from the general fund.

    “(b) Restrictions to labor market area. Employment growth incentives within the annual authorization amount in subsection (a) of this section shall be granted solely for awards to businesses located in a labor market area of this state in which the rate of unemployment is greater than the average for the state or in which the average annual wage is below the average annual wage for the state. For the purposes of this section, a “labor market area” shall be as determined by the department of labor.

    “(c) Overall gross cap on total employment growth incentive and education tax incentive authorizations. For any calendar year, the total amount of employment growth incentives the Vermont economic progress council or the economic incentive review board is authorized to approve under 32 V.S.A. 5930b and property tax stabilizations and allocations under 32 V.S.A. 5404a(a) and (e) shall not exceed $10,000,000.00 from the general fund and education fund combined each year. This maximum annual amount may be exceeded by the Vermont economic progress council upon application to and approval by the Emergency Board.”

    Tax increment financing districts; CAP. 2005, No. 184 (Adj. Sess.), § 2i as amended by 2007, No. 190 (Adj. Sess.), § 67 provides: “Notwithstanding any other provision of law, the Vermont economic progress council may not approve the use of education tax increment financing for more than six tax increment financing districts and no more than one newly created tax increment financing district in any municipality within the period of five state fiscal years beginning July 1, 2008. Thereafter no tax increment financing districts may be approved without further authorization by the general assembly.”

    Treatment of TIF districts for accounting purposes. 2011, No. 45 , § 15b provides: “The town of Milton may elect to treat the Husky and Catamount tax increment financing districts as a single district for purposes of the accounting and reporting requirements established under 32 V.S.A. § 5404a , 24 V.S.A. § 1901 , and any rule adopted by the Vermont economic progress council governing tax increment financing districts, and such an election shall be conclusive for purposes of any state audit pursuant to 32 V.S.A. § 5404a ( l ).”

    Tax increment financing districts. 2013, No. 80 , § 19 provides: “Pursuant to Sec. 3 of this act, 2006 Acts and Resolves No. 184, Sec. 2i, as amended by 2008 Acts and Resolves No. 190, Sec. 67 (tax increment financing districts, cap), is repealed to clarify that the Vermont Economic Progress Council shall not approve any additional tax increment financing districts.”

    Burlington tax increment financing. 2011, No. 45 , § 15b as amended by 2013, No. 174 (Adj. Sess.), § 7 provides: “(a) Pursuant to 2010 Acts and Resolves No. 54, Sec. 83, the Joint Fiscal Committee approved a formula for the implementation of a payment to the Education Fund in lieu of tax increment payments.

    “(b) The terms of the formula approved by the Joint Fiscal Committee are as follows:

    “(1) Beginning in the fiscal year in which there is the incurrence of new TIF debt, the City will calculate and make an annual payment on December 10th to the Education Fund each year until 2025. The April 1, 2010 grand list for the area encompassing the existing Waterfront TIF — excluding two parcels at 25 Cherry Street or the Marriott Hotel (SPAN#114-035-20755) and 41 Cherry Street — is the baseline to be used as the starting point for calculating the tax increment that will be divided 25 percent to the State Education Fund and 75 percent to the City of Burlington. At the conclusion of the TIF in FY 2025, any surplus tax increment funds will be returned to the City of Burlington and State Education Fund in proportion to the relative municipal and education tax rates as clarified in a letter from Mayor Bob Kiss to the Chair of the Joint Fiscal Committee dated September 9, 2009.

    “(2) The formula for calculating the payment in lieu of tax increment is as follows: first, the difference between the grand list for the Waterfront TIF excluding the two hotel parcels from the fiscal year in which the payment is due and the April 1, 2010 grand list is calculated. Next, that amount is multiplied by the current education property tax rates to determine the increment subject to payment. Finally, this new increment is multiplied by 25 percent to derive the payment amount.

    (3) [Repealed.]”

    Repeal of VEGI; annual calendar year caps. 2005, No. 184 (Adj. Sess.), § 11 as amended by 2015, No. 51 , § G.3 provided for the repeal of VEGI; annual calendar year caps, retroactively effective January 1, 2015.

    Tax increment financing; legislative findings. 2017, No. 69 , § J.1 provides: “The General Assembly finds that the State of Vermont has an important role to play in creating the infrastructure necessary to support downtown development and revitalization, particularly in distressed communities.”

    § 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.

    HISTORY: Added 1997, No. 60 , § 45, eff. Jan. 1, 1998; amended 2003, No. 121 (Adj. Sess.), § 100, eff. June 8, 2004.

    History

    Amendments

    —2003 (Adj. Sess.). Substituted “of subdivisions 3481(1) and 3802(1) of this title” for “of 32 V.S.A. § 3481(a) , and the provisions of 32 V.S.A. § 3802(1) ” in the introductory paragraph.

    Subdiv. (3): Added.

    § 5405. Determination of equalized education property tax grand list and coefficient of dispersion.

    1. 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.
    2. The sum of all municipal equalized education property tax grand lists shall be the equalized education property tax grand list for the State.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.

    HISTORY: 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.

    History

    Revision note

    —2019. Subsec. (g): Substituted “nonhomestead” for “nonresidential” in accordance with 2019, No. 46 , § 2, eff. Jan. 1, 2020.

    Amendments

    —2021. Subsec. (g): Substituted “nonhomestead” for “nonresidential” preceding “tax rates”.

    —2019 (Adj. Sess.). Subsec. (f): Substituted “the performance of” for “his or her” in the second sentence and substituted the current last sentence for the former last sentence.

    —2019. Subsec. (g): Added.

    —2013. Subsec. (a): Added “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” to end of subsection.

    —2009 (Adj. Sess.) Subsec. (a): Added the proviso.

    —2003 (Adj. Sess.). Subsec. (c): Inserted “and shall take account of all homestead declaration information available before October 1 each year” to the end of the second sentence.

    Subsec. (g): Repealed.

    —2003. Subsec. (d): Added the last sentence.

    Subsec. (g): Inserted “homestead or nonresidential” preceding “grand list” throughout the subsection.

    —1999. Subsec. (c): Substituted “April 1” for “January 1” in the second sentence.

    Subsec. (g): Added.

    Effective date of amendments—

    2013. 2013, No. No. 73, § 60(7) provides that § 39 [which amended this section] shall take effect for the study of the 2013 grand list.

    Applicability of 2003 amendment to subsec. (g). 2003, No. 68 , § 87(28) provides that § 85, which amends subsec. (g) of this section, relating to drop in grand list value, shall take effect in fiscal year 2005.

    ANNOTATIONS

    Challenge to equalization methodology.

    To successfully challenge the equalization methodology used by the Commissioner of Taxes to determine town’s statewide school property tax, it was the town’s burden to demonstrate that the approach was wholly irrational and unreasonable in relation to its intended purpose. Town of Killington v. Department of Taxes, 2003 VT 88, 176 Vt. 70, 838 A.2d 91, 2003 Vt. LEXIS 281 (2003).

    Where there was ample evidence to support a conclusion that the equalization methodology that the Commissioner of Taxes employed to calculate town’s aggregate fair market value was rational, and yielded a reasonably reliable result, this was sufficient to affirm the decision of the Valuation Appeal Board. Town of Killington v. Department of Taxes, 2003 VT 88, 176 Vt. 70, 838 A.2d 91, 2003 Vt. LEXIS 281 (2003).

    § 5406. Notice of fair market value and coefficient of dispersion.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: 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.

    History

    Amendments

    —2013 (Adj. Sess.). Subsec. (b): Substituted “Secretary of Education” for “commissioner of education”.

    —2005. Subsec. (c): Deleted “education property tax liabilities, and income sensitivity claims relating to the fiscal year designated by the director” following “property tax rates”.

    —2003 (Adj. Sess.). Subsec. (c): Added.

    —1997 (Adj. Sess.). Substituted “equalized education property” for “fair market” in subsecs. (a) and (b), and inserted “for the prior year” in subsec. (b).

    § 5407. Repealed. 2018, No. 2 (Sp. Sess.), § 4.

    History

    Former § 5407. Former § 5407, relating to the Valuation Appeal Board, was derived from 1997, No. 60 , § 45 and was amended by 1999, No. 49 , § 50.

    § 5408. Petition for redetermination.

    1. 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.
      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. (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.
      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. (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.

    HISTORY: 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.

    History

    Amendments

    —2018 (Sp. Sess.). Section amended generally.

    —2013 (Adj. Sess.). Subsec. (a): Act No. 174 substituted “Not later than 35 days after mailing” for “Not later than 30 days after the receipt by its clerk” at the beginning.

    Subsec. (b): Act No. 92 substituted “Secretary of Education” for “commissioner of education”.

    —1999. Subsecs. (a), (b): Substituted “equalized education property value and” for “fair market value or”.

    Subsec. (d): Inserted “or the division of property valuation and review” following “a municipality” and substituted “county” for “superior court district” following “court of the” in the first sentence.

    ANNOTATIONS

    Applicability.

    The rule governing appeals from governmental agencies applies not only to appeals to the Superior Court, but also to appeals to the Valuation Appeal Board of redeterminations in regard to the Equal Educational Opportunity Act. In re Town of Killington, 2003 VT 87, 2003 VT 87A, 176 Vt. 60, 838 A.2d 98, 2003 Vt. LEXIS 282 (2003).

    Construction.

    Different language in subsections of the statute governing appeals to the Valuation Appeal Board reflects the fact that administrative bodies require different, administrative-specific procedure beyond the provisions of rules governing appeals from governmental agencies; it does not support a legislative intent to exclude that rule and the appellate rule authorizing extensions of time for filing notice of appeal from controlling proceedings under the statute. In re Town of Killington, 2003 VT 87, 2003 VT 87A, 176 Vt. 60, 838 A.2d 98, 2003 Vt. LEXIS 282 (2003).

    Because the Legislature knew of rules governing appeals from governmental agencies and authorizing extensions of time for filing notice of appeal, and the provisions in the Administrative Procedure Act (APA) when implementing the APA as procedure in the statute governing appeals to the Valuation Appeal Board, it must be concluded that the Legislature intended to allow extensions for excusable neglect in appeals under the statute. In re Town of Killington, 2003 VT 87, 2003 VT 87A, 176 Vt. 60, 838 A.2d 98, 2003 Vt. LEXIS 282 (2003).

    Even though this section does not state explicitly that it is the “exclusive” remedy, the remedy outlined is narrow, circumscribed, and highly specific, and, therefore, the section requires exhaustion. Town of Bridgewater v. Department of Taxes, 173 Vt. 509, 787 A.2d 1234, 2001 Vt. LEXIS 380 (2001) (mem.).

    Particular cases.

    Applying the rule authorizing extensions of time for filing notice of appeal to the statute governing appeals to the Valuation Appeal Board does not affect the substantive rights of the parties in the case, nor does it jeopardize the execution of the Equal Educational Opportunity Act. In re Town of Killington, 2003 VT 87, 2003 VT 87A, 176 Vt. 60, 838 A.2d 98, 2003 Vt. LEXIS 282 (2003).

    Time requirements.

    Procedural provisions of rules governing appeals from governmental agencies and authorizing extensions of time for filing notice of appeal apply to appellate proceedings under the statute governing appeals to Valuation Appeal Board. In re Town of Killington, 2003 VT 87, 2003 VT 87A, 176 Vt. 60, 838 A.2d 98, 2003 Vt. LEXIS 282 (2003).

    There is no direct conflict between the statute providing a 30-day time limit for filing appeals to the Valuation Appeal Board and the appellate rule authorizing extensions of time for filing notice of appeal. In re Town of Killington, 2003 VT 87, 2003 VT 87A, 176 Vt. 60, 838 A.2d 98, 2003 Vt. LEXIS 282 (2003).

    Town’s excuse for failing to file a timely appeal to the Valuation Appeal Board, namely, that an internal office procedure breakdown in its counsel’s office resulted in the failure to calendar the appeal deadline date, and thus the late filing, was not enough to extend the filing time for appeal. In re Town of Killington, 2003 VT 87, 2003 VT 87A, 176 Vt. 60, 838 A.2d 98, 2003 Vt. LEXIS 282 (2003).

    Cited.

    Cited in Town of Killington v. Department of Taxes, 2003 VT 88, 176 Vt. 70, 838 A.2d 91, 2003 Vt. LEXIS 281 (2003).

    § 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:
      1. Sections 3202, 3203, 5868, 5875, 5882-5887, and 5891-5895 of this title, as amended, shall apply in the same manner as to income tax.
      2. 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.
      3. 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 subchapter 12 of chapter 151 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.

    HISTORY: 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.

    History

    References in text.

    Section 5875, referred to in subdiv. (3)(A), was repealed by 1997, No. 156 (Adj. Sess.), § 37.

    Revision note

    —2007. In subdiv. (3)(A), substituted “5881-5887 and 5891-5895” for “5881, 5882, 5883, 5884, 5885, 5886, 5887, 5891, 5892, 5893, 5894 and 5895” to conform to V.S.A. style.

    Revision note—. Subdiv. (6), as added by 1997, No. 156 (Adj. Sess.), § 50, redesignated as (8) to avoid conflict with subdivs. (6) and (7) as added by 1997, No. 71 (Adj. Sess.), § 11.

    Amendments

    —2019. Subdiv. (3)(A): Inserted “3202, 3203,”, deleted “5869, 5873,”, and substituted “5882” for “5881”.

    —2003. Inserted “statewide education” preceding “tax” and deleted “and to the local share tax imposed under section 428 or 511 of Title 16” in the introductory paragraph.

    Subdiv. (2): Substituted “education tax” for “property or local share tax”.

    Subdiv. (3): Substituted “education” for “local share”.

    Subdiv. (3)(C): Substituted “education” for “local share property”.

    Subdiv. (5): Inserted “and” following “tax”; deleted “local share property tax, and last to” preceding “statewide” and “education” and “property” following “education”.

    Subdiv. (7): Amended generally.

    Subdiv. (8): Deleted “property” preceding “taxes”.

    —1997 (Adj. Sess.). Act No. 71, § 11 deleted “to municipalities” following “shall apply” in the undesignated paragraph at the beginning; in subsec. (3) substituted “subdivision (2)” for “subdivision (3)”; in subdiv. (3)(B) deleted “and sections 5226 and 5227, and Articles 5 and 6 of chapter 133 of Title 32, shall apply in the same manner to the local share property tax” after the semi-colon and substituted ”chapter 133 of Title 32” for “those sections”; deleted subdiv. (3)(D), providing for deposit of revenues into the educational fund; deleted subdiv. (4) relating to the distribution of insufficient payment of taxes by a taxpayer; renumbered subdiv. (5) as (4), inserted “declared” preceding “homestead parcel”, and deleted the second sentence pertaining to municipalities using electronic format for transmitting information; and added subdivs. (5), (6) and (7).

    Subdiv. (4): Repealed by Act No. 71, § 75.

    Subdiv. (8): Added by Act No. 156, § 50.

    Applicability of 2003 amendment. 2003, No. 68 , § 87(5) provides that § 21, which amends this section, shall apply to fiscal years 2005 and after.

    § 5410. Declaration of homestead.

    1. A homestead owner shall declare ownership of a homestead for purposes of education property tax.
    2. 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 his or her homestead, if any, as of, or expected to be as of, April 1 of the year in which the declaration is made.
    3. 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.
    4. 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.
    5. The Commissioner shall adopt rules governing the eligibility requirements for declaring a homestead.
    6. [Repealed.]
    7. 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.
    8. 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.
    9. 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.
    10. 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 his or her recommendation, to the body authorized to grant or deny abatement.
    11. A municipality may retain any penalties and interest assessed and collected in accord with this section.
    12. “Hardship” under this section means an owner’s inability to pay as certified by the Commissioner of Taxes, in his or her discretion, or means an owner’s 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.

    HISTORY: 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. 1 60 (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.

    History

    Revision note

    —2019. Subsec. (g): Substituted “nonhomestead” for “nonresidential” in accordance with 2019, No. 46 , § 2, eff. Jan. 1, 2020.

    Amendments

    —2013 (Adj. Sess.). Subsec. (g): Rewrote the subsec.

    Subsec. (i): Substituted “October 15” for “September 1” following “erroneous declaration, after”.

    —2011 (Adj. Sess.). Subsec. (b): Amended generally.

    —2011. Subsec. (g): Amended generally.

    —2009 (Adj. Sess.) Subsecs. (b) and (g): Amended generally.

    —2009 (Sp. Sess.). Subsec. (c): Added.

    —2007 (Adj. Sess.). Subsec. (h): Substituted “0.225” for “one eighth” preceding “of one percent” in the second sentence.

    —2005 (Adj. Sess.). Subsecs. (h), (i): Substituted “September 1” for “July 15” in the first sentence.

    —2005. Subsec. (a): Substituted “homestead owner” for “resident”.

    Subsec. (b): Substituted “homestead owner” for “resident individual”.

    Subsec. (h): Substituted “declaration, on or before July 15” for “declaration, before December 1” in the first sentence.

    Subsec. (i): Substituted “declaration, after July 15” for “declaration, on December 1 or after ” in the first sentence and added the second sentence.

    —2003 (Adj. Sess.). Act No. 76 deleted “and rules governing waiver of penalty for late filing of a homestead declaration in cases of hardship” following “homestead” in subsec. (e), repealed subsec. (f), rewrote former subsec. (g) as subsecs. (g) and (h) and added subsecs. (i) through ( l ).

    Act No. 107 rewrote subsec. (h) and inserted “and interest” following “penalties” in subsec. (k).

    —2003. Subsec. (a): Substituted “shall” for “may”, “ownership of a” for “one” and “education property tax” for “this chapter”.

    Subsec. (b): Substituted “without” for “with” preceding “extension” and “shall” for “may” following “individual”.

    Subsec. (d): Added.

    Subsec. (e): Added the present subsec. (e) and redesignated the former subsec. (e) as present subsec. (f).

    Subsec. (f): Redesignated former subsec. (f) as present subsec. (g) and amended generally.

    —1999. Subsec. (b): Act No. 49 substituted “on or before the due date for filing the Vermont income tax return, with extension” for “by April 15” following “Annually” at the beginning of the paragraph.

    Subsec. (c): Repealed by Act No. 1.

    Subsec. (d): Repealed by Act No. 1.

    Subsec. (e): Act No. 49 rewrote the second sentence.

    —1997 (Adj. Sess.). Subsec. (a): Deleted “or part year resident” before “may declare”.

    Subsec. (b): Deleted “or part-year resident” before “individual”.

    Subsec. (c): Added the language beginning with “and the municipality shall notify”.

    Subsec. (d): Rewritten.

    Subsec. (f): Substituted “eight percent of the education tax assessed on the property, or if the declaration was filed with fraudulent was filed with fraudulent intent, then the commissioner shall assess the taxpayer a penalty in an amount equal to 100 percent of the education tax assessed on the property” for “110 percent of the property tax reduction granted on account of the homestead declaration”; substituted “penalty” for “tax” before “imposed” in the second sentence; and added the last sentence.

    Effective date of 2003 amendment. 2003, No. 68 , § 87(3) provides that Sec. 6 of that act, which amends this section, shall take effect January 1, 2004.

    2005 amendment. 2005, No. 38 , § 22(12), provided that § 17 of that act, which amended subsecs. (a) and (b) of this section, shall apply to homestead declarations related to April 1, 2005, and after.

    Applicability of 2007 (Adj. Sess.) amendment to subsec. (h). 2007, No. 190 (Adj. Sess.), § 102(3), provides: “Sec. 12 [which amends subsec. (h)] (increasing amount municipalities may retain to 0.225 of one percent of education taxes collected) shall apply to education property taxes for fiscal years 2009 and after.”

    Applicability of 2009 subsec. (c). 2009, No. 1 (Sp. Sess.), § H.58(3), provides that Sec. H.24 [which added subsec. (c) to this section] shall apply to declarations filed in calendar year 2010 and after.”

    Applicability of 2011 amendment. 2011, No. 45 , § 37(3) provides: “Sec. 11 [which amended this section] (changes to homestead declaration penalty) and Sec. 13b [which amended 32 V.S.A. § 6066 ] (veteran’s exemption adjustment) shall apply to property tax adjustment claims made in 2011 and after.”

    Applicability of 2011 (Adj. Sess.) amendment to subsec. (b). 2011, No. 143 (Adj. Sess.), § 63(4) provides that § 25 of that act shall take effect January 1, 2013 and shall apply to property tax adjustments, renter rebate claims, and homestead declarations for 2013 and after.

    Applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70(5) provides that §§ 17 (corrected tax bills due to late filing of declaration) [which amended subsec. (g) of this section], 18 (last date for filing declaration) [which amended subsec. (i) of this section], and 19 (corrected tax bills due to late filing of property tax adjustment claim) [which amended 32 V.S.A. § 6066a(f) ] shall take effect on July 1, 2014 and apply to property appearing on grand lists lodged in 2014 and after.

    Due date of declaration of homestead. 1999, No. 49 , § 8 provides that, “[n]otwithstanding section 5410(d) of Title 32 [which was repealed by 1999, No. 1 , § 60], a declaration of homestead in 1999 shall not be due on the date for filing the income tax return, but shall be filed by October 15, 1999.”

    Transition to annual homestead filing. 2011, No. 143 (Adj. Sess.), § 25a provides: “For 2013 only, as part of the requirement of annual homestead filings in Sec. 25 of this act, the commissioner shall take steps to publicize and conduct outreach regarding the change in filing requirements. In addition, for 2013 only, the commissioner may use his or her authority under 32 V.S.A. § 3201 to provide a remedy for a taxpayer who fails to file or files an inaccurate classification of property as homestead or nonresidential pursuant to section 5410 of this title, through no fault of the taxpayer.”

    § 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.

    HISTORY: Added 1997, No. 60 , § 45, eff. Jan. 1, 1998.

    § 5412. Reduction of listed value and recalculation of education tax liability.

      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) (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:
        1. 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.
        2. 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.
        3. [Repealed.]
        4. 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.
    1. 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.
    2. 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.
    3. 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.
    4. 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 $100,000.00. 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 $100,00.00.
    5. 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.

    HISTORY: 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.

    History

    Amendments

    —2007 (Adj. Sess.). Rewrote section.

    —2007. Subsec. (b): Amended generally.

    Applicability of enactment.

    Applicability of enactment and effective date. 2001, No. 63 , § 283(b) provided in part that section 279, which added this section, shall take effect June 16, 2001, and shall apply to appeals from grand lists of April 1, 2001 and thereafter.

    Repeal of 2017, No. 11 , § 60 amendments. 2018, No. 8 (Sp. Sess.), § 9, effective June 28, 2018 repeals the amendment to subsec. (a) of this section by 2017, No. 11 , § 60.

    Part 3. Income and Franchise Taxes

    Chapter 151. Income Taxes

    History

    References in text.

    References in Chapter 151 to the “Internal Revenue Code” refer to Title 26 of the U.S. Code.

    CROSS REFERENCES

    Use of sheriff, constable, or private collection agency for the collection of taxes, see § 3109 of this title.

    Subchapter 1. Definitions; General Provisions

    History

    Income and franchise taxes—Prior law. Former chapters 151, 153, 155, and 157, and §§ 5601-5796, 5901-5943, 6001-6070, and 6101-6106 of this title, relating to income and franchise taxes were terminated by 1966, No. 61 , § 2, eff. Jan. 1, 1966, operative December 31, 1965 and December 31, 1966.

    As such chapters were terminated they have not been set out in this recompilation. Such chapters were derived from V.S. 1947, §§ 932-983, and amended by:

    1959, No. 49 , No. 167, No. 168 , No. 194, No. 202 , No. 242, No. 266 .

    1961, No. 112 , No. 129, No. 136 , No. 143, No. 204 .

    1963, No. 55 , No. 63, No. 64 , No. 76, No. 95 , No. 105.

    1964, No. 39 (Sp. Sess.).

    1965, No. 176 , No. 192, No. 193 .

    § 5811. Definitions.

    The following definitions shall apply throughout 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:
      1. railroad and insurance companies that are taxed under chapter 211 of this title;
      2. credit unions organized under 8 V.S.A. chapter 71 and federal credit unions;
      3. nonprofit hospital service corporations organized under 8 V.S.A. chapter 123; and
      4. 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 husband and wife 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.”
      1. An individual qualifies for residency in this State for that portion of the taxable year during which:
        1. the individual is domiciled in this State; or
        2. 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.
      2. A trust qualifies for residency in this State if it is:
        1. 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
        2. a trust, or a portion of a trust, consisting of property of:
          1. 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
          2. 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.
      3. As used in subdivision (B) of this subsection, 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 his or her 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:
      1. was incorporated under the laws of this State;
      2. possessed a certificate of authority to do business within this State; or
      3. 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:
        1. fulfillment operations as follows:
          1. maintenance of cash balances with banks or trust companies in this State;
          2. the following actions by a person unrelated to the corporation taken on behalf of the corporation:
            1. sales order processing service;
            2. credit card processing services;
            3. 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
            4. 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
            5. the portion of federally taxable benefits received under the federal Social Security Act that is required to be excluded under section 5830e of this chapter; and
        2. any or all of the following necessary to create or maintain a World Wide Web page or Internet site for the corporation:
          1. 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;
          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.
    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:
      1. 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) of the Internal Revenue Code, and excluding income that under the laws of the United States is exempt from taxation by the states:
        1. increased by:
          1. 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; and
          2. 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;
          3. the amount of any deduction for a federal net operating loss; and
        2. Subdivision (18)(A)(ii) effective until January 1, 2022; see also subdivision (18)(A)(ii) effective January 1, 2022 set out below.decreased by:
          1. 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; and
          2. the amount of income which results from the required reduction in salaries and wages expense for corporations claiming the Targeted Job or WIN credits.
        3. Subdivision (18)(A)(ii) effective January 1, 2022; see also subdivision (18)(A)(ii) effective until January 1, 2022 set out above.decreased by:
          1. 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;
          2. 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
          3. Subdivision (18)(A)(ii)(III) effective January 1, 2022 until January 1, 2023; see also subdivision (18)(A)(ii)(III) effective January 1, 2023 set out below.

            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 18 V.S.A. chapter 86 or 7 V.S.A. chapter 33 or 37, but for 26 U.S.C. § 280E.

            (III)

            Subdivision (18)(A)(ii)(III) effective January 1, 2023; see also subdivision (18)(A)(ii)(III) effective January 1, 2022 until January 1, 2023 set out above.

            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.

      2. 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.
      3. 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.
      4. 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. “Commercial film production” means production of motion pictures intended for theater or video release or exhibition on international or national television by a network, cable network, or for syndication; or production of television advertisements; or production of a pilot for, or an episode or segment of, an internationally or nationally televised series by a network, cable network, or for syndication or video release.
    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:
      1. increased by the following items of income (to the extent such income is excluded from federal adjusted gross income):
        1. interest income from non-Vermont state and local obligations; and
        2. dividends or other distributions from any fund to the extent they are attributable to non-Vermont state or local obligations; and
      2. decreased by the following items of income (to the extent such income is included in federal adjusted gross income):
        1. income from U.S. government obligations;
        2. 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:
          1. the sale of any real estate or portion of real estate used by the taxpayer as a primary or nonprimary residence; or
          2. 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;
        3. Subdivision (21)(B)(iii)-(iv) effective until January 1, 2022; see also subdivision (21)(B)(iii)-(iv) effective January 1, 2022 set out below.

          recapture of State and local income tax deductions not taken against Vermont income tax; and

        4. the portion of federally taxable benefits received under the federal Social Security Act that is required to be excluded under section 5830e of this chapter; and

          (iii)

          Subdivision (21)(B)(iii)-(iv) effective January 1, 2022; see also subdivision (21)(B)(iii)-(iv) effective until January 1, 2022 set out above.

          recapture of State and local income tax deductions not taken against Vermont income tax;

        5. Subdivision (21)(B)(v) effective January 1, 2022 until January 1, 2023; see also subdivision (21)(B)(v) effective January 1, 2023 set out below.

          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 18 V.S.A. chapter 86 or 7 V.S.A. chapter 33 or 37, but for 26 U.S.C. § 280E; and

          (v)

          Subdivision (21)(B)(v) effective January 1, 2023; see also subdivision (21)(B)(v) effective January 1, 2022 until January 1, 2023 set out above.

          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

      3. decreased by the following exemptions and deductions:
        1. 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;
        2. a standard deduction determined as follows:
          1. 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;
          2. for taxpayers whose filing status under section 5822 of this chapter is head of household, $9,000.00;
          3. for taxpayers whose filing status under section 5822 of this chapter is married filing joint return or surviving spouse, $12,000.00;
        3. 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
        4. an amount equal to the itemized deduction for medical expenses taken at the federal level by the taxpayer, under 26 U.S.C. § 213:
          1. minus the amount of the Vermont standard deduction and Vermont personal exemptions taken by the taxpayer under this subdivision (C); and
          2. 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).
      4. The dollar amounts of the personal exemption allowed under subdivision (i) of subdivision (C) of this subdivision (21), the standard deduction allowed under subdivision (ii) of subdivision (C) of this subdivision (21), and the additional deduction allowed under subdivision (iii) of subdivision (C) 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, “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 overseas business organizations or 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. “Overseas business organization” means a business organization that ordinarily has 80 percent or more of its payroll and property outside the 50 states and the District of Columbia.
    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:
      1. 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
      2. 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.
      1. 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 subsection 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. (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 subsection 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.
      2. 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) .
    27. “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:
      1. increased by the following items of income:
        1. interest income from non-Vermont state and local obligations;
        2. dividends or other distributions from any fund to the extent they are attributable to non-Vermont state or local obligations; and
        3. the amount of State and local income taxes deducted from federal gross income for the taxable year; and
      2. decreased by the following items of income:
        1. income from U.S. government obligations;
        2. 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:
          1. the sale of any real estate or portion of real estate used by the taxpayer as a primary or nonprimary residence; or
          2. 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
        3. recapture of State and local income tax deductions not taken against Vermont income tax.

    HISTORY: 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. 1 60 (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.

    History

    References in text.

    8 V.S.A. chapter 71, referred to in subdiv. (3)(B), was repealed by 2005, No. 16 , § 4.

    Revision note

    —2013. In subdiv. (11)(C), substituted “As used in ” for “For the purposes of” to conform to V.S.A. style.

    Revision note—. Reference in subsec. (3)(B) to 8 V.S.A. chapter 33 was changed to 8 V.S.A. chapter 71 to conform reference to reclassification of chapter.

    In subsec. (3)(C) “chapter 119” was changed to “chapter 123” and in (3)(D) “chapter 123” was changed to “chapter 125” to reflect renumbering of these chapters.

    Editor’s note

    —2009. Redesignated subdivs. (26)(A) and (26)(B), relating to the definition of taxable income, to avoid conflict with the previously designated subdiv. (26), relating to digital business entities.

    During the 1991 session, subdiv. (18) was amended twice, by Act Nos. 32 and 67, resulting in two versions of the subdivision. In order to reflect all of the changes enacted by the Legislature during the 1991 session, the text of Act Nos. 32 and 67 was merged to arrive at a single version of subdiv. (18). The changes that each of the amendments made are described in the amendment notes set out below.

    Amendments

    —2019 (Adj. Sess.). Subdiv. (18)(A)(ii): 2019, No. 164 (Adj. Sess.), § 18 deleted “and” after “foreign tax credit;” in subdiv. (I), substituted “that” for “which” and inserted “, and” following “WIN credits” in subdiv. (II), and added subdiv. (III).

    Subdiv. (18)(A)(ii)(III): 2019, No. 164 (Adj. Sess.), § 18a, deleted “18 V.S.A. chapter 86 or” preceding “7 V.S.A. chapter 33 or 37”, effective January 1, 2023.

    Subdiv. (21)(B)(v): Added by 2019, No. 164 (Adj. Sess.), § 18.

    Subdiv. (21)(B)(v): 2019, No. 164 (Adj. Sess.), § 18a, deleted “18 V.S.A. chapter 86 or” preceding “7 V.S.A. chapter 33 or 37”, effective January 1, 2023.

    —2019. Subdivs. (21)(B)(ii)(II) and (28)(B)(ii)(II): Inserted “or $350,000.00, whichever is less”.

    Subdiv. (21)(C)(iv): Added.

    Subdiv. (21)(D): Amended generally.

    —2018 (Sp. Sess.). Subdiv. (21): Amended generally.

    —2017. Subdivs. (21) and (27): Amended generally.

    Subdiv. (28): Added.

    —2015. Subdiv. (21)(A): Deleted “in excess of $5,000.00” preceding “of State and local” in subdiv. (iii), and added subdiv. (iv).

    —2013. Subdiv. (18): Added subdiv. (18)(B)(i)(III).

    Subdiv. (21)(B)(ii): Inserted “reduced by the total amount of any qualified dividend income” after “Internal Revenue Code”; inserted “such” after “$5,000.00 of”.

    —2009 (Adj. Sess.) Subdiv. (21)(B): Amended generally.

    —2009 (Sp. Sess.). Act No. 1 amended subdiv. (3) generally; added subdiv. (18)(D); added subdiv. (21)(A)(iii); rewrote subdiv. (21)(B)(ii) and added subdiv. (21)(B)(iii).

    Act No. 1 added subdiv. (26).

    Act No. 2, § 16a added subdivs. (21)(B)(ii), (21)(B)(ii)(I) and the subdiv. (II) designation.

    Act No. 2, § 16b added subdiv. (26).

    —2007 (Adj. Sess.). Subdiv. (21): Amended generally.

    —2005 (Adj. Sess.). Subdiv. (18)(C): Act No. 94 substituted “includes” for “is” preceding “the allocable”.

    Subdivs. (21)(A)(iii) and (21)(B)(iii): Deleted by Act No. 207.

    Subdiv. (25): Added by Act No. 207.

    —2003 (Adj. Sess.). Rewrote subdiv. (18) and added subdivs. (22)-(24).

    —2003. Subdiv. (21)(A)(iii): Added.

    Subdiv. (21)(B)(ii): Substituted “40” for “forty” preceding “percent”.

    Subdiv. (21)(B)(iii): Added.

    —2001 (Adj. Sess.) Act No. 140 repealed subdivs. (1) and (4), inserted “without regard to Section 168(k) of the Internal Revenue Code” following “No” in the introductory paragraph of subdiv. (18) and added subdiv. (21).

    Act No. 144 amended subdiv. (15) generally.

    —2001. Subdiv. (4): Amended generally.

    Subdiv. (7): Inserted “unless otherwise provided” at the end of the subdivision.

    —1997 (Adj. Sess.). Subdiv. (3)(A): Substituted “and” for “express, telegraph, steamboat, trolley, or electric railway corporations, pipe line corporations engaged exclusively in interstate commerce with no receipts or deliveries within this state” after “Railroad”.

    Subdiv. (19): Added.

    —1995 (Adj. Sess.) Subdiv. (15)(C): Amended generally.

    Subdiv. (18)(B): Rewrote the third sentence.

    —1995. Amended subdivs. (1) and (4) generally.

    —1991. Subdiv. (1): Act No. 32 deleted “provided that the first $5,000.00 of such income received by an individual age 62 or over on the last day of the taxable year shall be excluded” following “subdivisions” at the end of the second sentence and deleted the third sentence.

    Act No. 67 substituted “fund to the extent such dividend or distribution is attributable to such Vermont state or local obligations” for “legal entity unless at least 50 percent of the value of the assets consist of obligations of Vermont and its political subdivisions” following “distributions from any” in the second sentence.

    Subdiv. (4): Act No. 32 added “and without using a method of calculating federal tax liability different than that used for federal purposes” following “Medicare premium” in the first sentence and deleted the second sentence.

    Act No. 67 substituted “fund to the extent such dividend or distribution is attributable to such Vermont state or local obligations” for “legal entity unless at least 50 percent of the value of the assets consist of obligations of Vermont and its political subdivisions” following “distributions from any”.

    Subdiv. (18): Amended generally by Act No. 32.

    Act No. 67 purported to substitute “fund to the extent such dividend or distribution is attributable to such Vermont state or local obligations” for “legal entity unless at least 50 percent of the value of the assets consist of obligations of Vermont and its political subdivisions”; however, the change had been previously made by Act No. 32.

    —1989 (Adj. Sess.) Subdiv. (4): Act No. 210 deleted “foreign tax credit” preceding “child care” in the first sentence.

    Subdiv. (11): Amended generally by Act No. 222.

    —1989. Subdiv. (4): Inserted “and alternative minimum tax credit” following “dependent care credits” and substituted “or the addition of the supplemental Medicare premium” for “granted or imposed under the laws of the United States” following “surtax upon that liability” in the first sentence.

    —1987 (Adj. Sess.) Subdiv. (3)(A): Deleted “telephone” preceding “telegraph, steamboat”.

    —1987. Subdiv. (1): Inserted “unless” following “entity”, deleted “which” preceding “consist of” and deleted “state and local obligations other than” thereafter in the second sentence and added the third sentence.

    Subdiv. (4): Amended generally.

    Subdiv. (18): Inserted “unless” preceding “at least 50 percent”, deleted “which” preceding “consist of” and deleted “state and local obligations other than” in the first sentence.

    —1985 (Adj. Sess.) Subdiv. (1): Act No. 262 added the second sentence.

    Subdiv. (4): Amended generally by Act No. 262.

    Subdiv. (17): Act No. 266 substituted “a person” for “an individual, trust, estate, employer or corporation” preceding “obligated”.

    Subdiv. (18): Act No. 262 rewrote the first sentence.

    Subdiv. (20): Added by Act No. 266.

    —1981 (Adj. Sess.) Subdiv. (11)(A)(i): Deleted proviso that an individual who does not maintain a permanent place of abode within this state during an entire taxable year, and does not spend, in the aggregate, more than 30 days of that taxable year within this state, does not qualify for residency in this state during any portion of that taxable year.

    —1979 (Adj. Sess.) Subdiv. (2): Added the words “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.”

    Subdiv. (4): Deleted reference to “general credit, and tax-free covenant bonds credit”.

    Subdiv. (18): Added the words “or the amount of income which results from the required reduction in salaries and wages expense for corporations claiming the Targeted Job or WIN credits” at the end of the second sentence.

    Subdiv. (19), relating to general tax credit, was added by 1977, No. 117 (Adj. Sess.), § 2 and repealed by 1979, No. 105 (Adj. Sess.), § 2.

    —1977 (Adj. Sess.) Subdiv. (4): Added “general credit”.

    Subdiv. (19): Added.

    —1977. Subdiv. (4): Added child care and dependent care credits.

    —1975 (Adj. Sess.) Subdiv. (3)(N): Added.

    —1973. Subdiv. (3)(D)(iii): Added.

    —1971. Subdiv. (18): Amended generally.

    —1967. Amended and rephrased section generally.

    Effective date and applicability of 2019 (Adj. Sess.) amendments. 2019, No. 164 (Adj. Sess.), § 33(c) provides that § 18 (income tax deduction) [which amends subdivs. (18) and (21) of this section] shall take effect on January 1, 2022., 2019, No. 164 (Adj. Sess.), § 33(f) provides that §§ 18a and 18b (income tax deduction) [which further amend subdivs. (18) and (21) of this section] shall take effect on January 1, 2023.

    Retroactive effective date and applicability of 2019 amendment. 2019, No. 71 , § 24(2) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. 2 (medical deduction) shall take effect retroactively on January 1, 2019 and apply to taxable year 2019 and after.”

    Retroactive effective date and applicability of 2018 (Sp. Sess.) amendment. 2018, No. 11 (Sp. Sess.), § H.31(a)(1) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. H.1-H.6 (income tax changes) [H.1 amended this section] shall take effect retroactively on January 1, 2018 and apply to taxable year 2018 and after.”

    Effective date and applicability of 2017 amendment. 2017, No. 73 , § 32(5) provides: “Sec. 13a (adjusted gross income) shall take effect on January 1, 2018 and apply to taxable year 2018 and after.”

    Retroactive effective date and applicability of 2015 amendment to subdiv. (21). 2015, No. 57 , § 99(11) provides that § 64 (taxable income) [which amended subdiv. (21)], notwithstanding 1 V.S.A. § 214 , shall take effect retroactively to January 1, 2015, and apply to taxable year 2015 and after.

    Applicability of 2009 (Adj. Sess.) amendment to subdiv. (21). 2009, No. 160 (Adj. Sess.), § 62(18), provides: “Sec. 60 [which amended subdivs. (21)(B)(ii) and (21)(B)(iii) of this section] of this act (capital gains) shall apply to taxable years 2011 and after.”

    Applicability of 2009 amendments to subdivs. (3) and (18). 2009, No. 1 (Sp. Sess.), § H.58(4), provides that § H.25 [which amended subdivs. (3) and (18) of this section] shall take effect for taxable years beginning on and after January 1, 2010.”

    Applicability of 2007 (Adj. Sess.) amendment to subdiv. (21)(B). 2007, No. 190 (Adj. Sess.), § 102(6), provides: “Sec. 19 [which amended subdiv. (21)(B)] (regarding a limitation on the reduction of taxable income by the capital gains deduction) shall apply to taxable years 2008 and after.”

    Applicability of 2007 (Adj. Sess.) amendment to subdiv. (21). 2007, No. 190 (Adj. Sess.), § 102(10), provides: “Sec. 36 [which amended subdiv. (21)] (block of federal bonus depreciation on personal income tax) shall apply to taxable years 2008 and after, and shall apply only to assets placed in service on or after January 1, 2008.”

    Applicability of 2005 (Adj. Sess.) amendment. 2005, No. 94 (Adj. Sess.), § 10(1) provides that § 1 of that act [which amended subdiv. (18)(C) of this section] shall apply to taxable years beginning on or after January 1, 2006.

    Applicability of 2003 amendment. 2003, No. 67 , § 26(c) provides that § 24a of that act, which amends this section, shall take effect July 1, 2003 and apply to investments made on or after that date.

    2003 (Adj. Sess.). 2003, No. 152 (Adj. Sess.), § 23(1) provided in part that § 2 of that act, which amends this section, shall apply to taxable years beginning on or after January 1, 2006.

    2001 (Adj. Sess.) amendment. 2001, No. 140 (Adj. Sess.), § 43(1) provides that § 1 of that act [which repeals subdivs. (1) and (4) of this section] shall apply to taxable years beginning on or after January 1, 2002.

    2001, No. 140 (Adj. Sess.), § 43(1) provides that § 2 of that act [which amends this section by adding subdiv. (21)] shall apply to taxable years beginning on or after January 1, 2002.

    2001, No. 140 (Adj. Sess.), § 43(4) provides that § 3 of that act [which amends subdiv. (18) of this section] shall apply to taxable years beginning on or after January 1, 2001.

    2001 amendment; expiration of 2001 amendment. 2001, No. 67 , § 8(1), eff. Jun 16, 2001, provided that the amendment to this section, by §§ 2 and 3 of that act, “shall apply to taxable years beginning on or after January 1, 2001, but before January 1, 2003, and shall sunset on January 1, 2003.”

    1999 amendment. 1999, No. 49 , § 68, provided: “Notwithstanding Sec. 27 of No. 169 of the Acts of 1995 (Adj. Sess.) [set out in the note above], Secs. 21 through 24 of that act (relating to the taxation of S corporations and to the taxation of partnerships and limited liability companies) shall also apply to tax years beginning on and after January 1, 2000. Sections 5915 and 5921 of Title 32 shall continue in effect as amended in Acts 71 and 156 of the Acts of 1998.”

    1995 (Adj. Sess.) amendment. 1995, No. 169 (Adj. Sess.), § 27, eff. May 15, 1996, provided in part that § 14 of that act, which amended subdiv. (15) of this section, would apply to tax years beginning on and after Jan. 1, 1996, and that § 22 of that act, which amended subdiv. (18) of this section, would apply to tax years beginning on or after Jan. 1, 1997, but before Jan. 1, 2000.

    1991 amendments. 1991, No. 67 , § 27(c), eff. June 19, 1991, provided in part: “[T]he provision pertaining to use of the same method of tax calculation as that used for federal purposes shall apply retroactively to taxable years beginning on and after January 1, 1990; and provisions repealing the exclusion of non Vermont interest and dividend income for taxpayers 62 or over shall apply to taxable years beginning on or after January 1, 1991; except that provisions deleting the 50 percent asset calculation for exclusion of Vermont obligations from taxation shall take effect, and shall apply to taxable years beginning on or after January 1, 1992.”

    Federal income tax liability. 2001, No. 67 , § 7, eff. June 16, 2001, provided: “ ‘Federal income tax liability,’ ” as defined in 32 V.S.A. § 5811(4) , shall be calculated without regard to the Acceleration of Tax Bracket Credit under 26 U.S.C. § 6428.”

    Investments deferred under prior law. 2005, No. 207 (Adj. Sess.), § 11 provides: “Capital gain income, the taxation of which was deferred pursuant to 32 V.S.A. § 5811(21)(B) (iii), must be included in the qualified taxpayer’s taxable income no later than five years after the taxable year in which the investment that gave rise to the deferral was made.”

    Inclusion in income of amount of deduction taken for sales and use tax on purchase of new vehicle. 2009, No. 1 (Sp. Sess.), § 58(12) as amended by 2009, No. 2 (Sp. Sess.), § 19 provides: “The capital gains exemption provisions of Sec. H.47, which provisions are further amended by Sec. 16a of this act, shall apply to capital gains earned or received by a taxpayer on and after July 1, 2009; and the state income tax deduction add-back provisions of Sec. H.47 shall apply to taxable years beginning on or after January 1, 2009.”

    Applicability and transition rule. 2009, No. 2 (Sp. Sess.), § 18 provides: “(a) Sec. 16a of this act [which amended subdiv. (21)] shall apply to adjusted net capital gain income earned or received by a taxpayer on or after July 1, 2009 and before January 1, 2011, except that in calculating 2009 taxable year taxes only, taxpayers shall subtract from taxable income 40 percent of adjusted net capital gain income earned or received after December 31, 2008 but before July 1, 2009 and shall subtract from taxable income the first $2,500.00 of adjusted net capital gain income earned or received on or after July 1, 2009 but before January 1, 2010.

    “(b) Sec. 16b of this act [which amended 32 V.S.A. 5811(21)] shall apply to adjusted net capital gain income earned or received by a taxpayer on or after January 1, 2011.

    “(c) Sec. 17 of this act [which added 32 V.S.A. 5811(26)] shall apply to adjusted net capital gain income earned or received by a taxpayer on or after July 1, 2009.”

    Legislative intent. 2019, No. 164 (Adj. Sess.), § 18c provides: “It is the intent of the General Assembly to create an income tax deduction for dispensaries and cannabis establishments for the taxable years beginning on and after January 1, 2022. This deduction shall be available to dispensaries irrespective of their regulation under 18 V.S.A. chapter 86 or 7 V.S.A. chapter 37 and to cannabis establishments licensed and engaged in the activities permitted under 7 V.S.A. chapter 33.”

    ANNOTATIONS

    Federal tax credits.

    Taxpayers were not precluded from claiming tax credit under 32 V.S.A. § 5825 on grounds that Vermont allowed only those federal credits specifically identified in § 5811(4), since § 5811(4) was not the only section of State income tax chapter which contained available federal tax credits. Tarrant v. Department of Taxes, 169 Vt. 189, 733 A.2d 733, 1999 Vt. LEXIS 79 (1999).

    Where federal new jobs credit program and targeted jobs credit program were both intended to encourage the hiring of new employees, the targeted jobs credit program was an extension of the new jobs credit program, and both programs required employers electing to apply the credits against their federal taxes to reduce their wage and salary deduction by an amount equal to the credits taken, 1980 amendment to subdiv. (18) of this section, which excluded “the amount of income which results from the required reduction in salaries and wage expense for corporations claiming the Targeted Job [credit]” from the definition of Vermont corporate income, was intended to cover both federal programs. Winterset, Inc. v. Commissioner of Taxes, 144 Vt. 230, 475 A.2d 231, 1984 Vt. LEXIS 431 (1984).

    Purpose.

    The purpose of income tax statutes is to raise revenue for the State. F.W. Woolworth Co. v. Commissioner of Taxes, 130 Vt. 544, 298 A.2d 839, 1972 Vt. LEXIS 314 (1972).

    Residency.

    Taxpayer did not abandon his domicile in Vermont and was therefore liable as a resident of Vermont income tax, even though he was working on board a ship out of Virginia and spent some weekends with relatives in Virginia, where he recovered from injuries with relatives in Vermont, made visits to Vermont, listed a Vermont address on federal income tax returns and in employment records, was registered to vote on Vermont, and did not file Virginia income tax return. Piche v. Department of Taxes, 152 Vt. 229, 565 A.2d 1283, 1989 Vt. LEXIS 151 (1989).

    Vermont net income.

    For purposes of Vermont income tax, a corporation’s dividend income is reported as part of the Vermont net income from the federal tax return of a corporate taxpayer. F. W. Woolworth Co. v. Commissioner of Taxes, 133 Vt. 93, 328 A.2d 402, 1974 Vt. LEXIS 293 (1974).

    Cited.

    Cited in Bagley v. Vermont Department of Taxes, 146 Vt. 120, 500 A.2d 223, 1985 Vt. LEXIS 358 (1985); Oxx v. Department of Taxes, 159 Vt. 371, 618 A.2d 1321, 1992 Vt. LEXIS 189 (1992).

    § 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.

    HISTORY: Added 1999, No. 91 (Adj. Sess.), § 21; amended 2013, No. 73 , § 19.

    History

    Former § 5812. Former § 5812, relating to authority of commissioner to administer and enforce chapter, was derived from 1966, No. 61 (Sp. Sess.), § 1, and was previously repealed by 1991, No. 186 (Adj. Sess.), § 3(a), eff. May 7, 1992.

    Amendments

    —2013. Inserted “or civil marriage” after “a civil union” in two places and “civil marriage” after “civil union” near the end.

    Applicability of enactment.

    1999 (Adj. Sess.). 1999, No. 91 (Adj. Sess.), § 42(c), provided in part that § 21 of that act, which added this section, shall apply to taxable years beginning on and after January 1, 2001.

    1999 (Adj. Sess.). 1999, No. 91 (Adj. Sess.), § 41, contained a severability provision applicable to this section.

    § 5813. Statutory purposes.

    1. 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.
    2. 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.
    3. The statutory purpose of the Vermont credit for child and dependent care in subsection 5822(d) of this title is to provide financial assistance to employees who must incur dependent care expenses to stay in the workforce in the absence of prekindergarten programming.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. The statutory purpose of the Vermont fagade improvement tax credit in subsection 5930cc(b) and sections 5930aa-5930ff of this title is to provide incentives to improve fagades and rehabilitate historic properties in designated downtowns and village centers.
    15. 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.
    16. 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.
    17. 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.
    18. The statutory purpose of the Vermont low-income child and dependent care tax credit in section 5828c of this title is to provide cash relief to lower-income employees who incur dependent care expenses in certified centers to enable them to remain in the workforce.
    19. The statutory purpose of the Vermont earned income tax credit in section 5828b of this title is to provide incentives for low-income working families and individuals and to offset the effect on these Vermonters of conventionally regressive taxes.
    20. 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.
    21. 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.
    22. 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.
    23. The statutory purpose of the partial exemption of federally taxable benefits under the Social Security Act 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.
    24. 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.

    HISTORY: 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.

    History

    Former § 5813. Former § 5813, relating to adoption of rules, was derived from 1966, No. 61 (Sp. Sess.), § 1. Former § 5813 was previously repealed by 1991, No. 186 (Adj. Sess.), § 8(a), eff. May 7, 1992 and the subject was covered by § 3201 of this title.

    References in text.

    Sections 5930n-5930r of this title, referred to in subsec. (q), were repealed by 2005, No. 183 (Adj. Sess.), § 16(b).

    Amendments

    —2018 (Sp. Sess.) Subsecs. (w), (x): Added.

    —2015 (Adj. Sess.). Subsec. (u): Amended generally.

    Retroactive effective date and applicability of 2018 (Sp. Sess.) amendment. 2018, No. 11 (Sp. Sess.), § H.31(a)(1) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. H.1-H.6 (income tax changes) [H.6 amended this section] shall take effect retroactively on January 1, 2018 and apply to taxable year 2018 and after.”

    § 5814. Repealed. 1991, No. 186 (Adj. Sess.), § 8(b), eff. May 7, 1992.

    History

    Former § 5814. Former § 5814, relating to abatement of tax liabilities, was derived from 1966, No. 61 (Sp. Sess.), § 1. The subject matter is now covered by § 3201 of this title.

    § 5815. Repealed.

    History

    Former § 5815. Former § 5815, relating to secrecy of records, was derived from 1966, No. 61 (Sp. Sess.), § 1 and amended by 1971, No. 251 (Adj. Sess.), § 1; 1975, No. 244 (Adj. Sess.), §§ 2, 4; 1979, No. 105 (Adj. Sess.), § 3, 1985, No. 172 (Adj. Sess.), § 10. The subject matter is now covered by § 3102 of this title.

    § 5816. Repealed. 1991, No. 186 (Adj. Sess.), § 3(b), eff. May 7, 1992.

    History

    Former § 5816. Former § 5816, relating to publication of statistics, was derived from 1966, No. 61 (Sp. Sess.), § 1. The subject matter is now covered by § 3101 of this title.

    § 5817. Repealed. 1991, No. 186 (Adj. Sess.), § 8(c), eff. May 7, 1992.

    History

    Former § 5817. Former § 5817, relating to allocation of tax payments, was derived from 1966, No. 61 (Sp. Sess.), § 1.

    § 5818. Repealed. 1991, No. 186 (Adj. Sess.), § 8(d), eff. May 7, 1992.

    History

    Former § 5818. Former § 5818, relating to reciprocal enforcement of tax liabilities, was derived from 1966, No. 61 (Sp. Sess.), § 1. The subject matter is now covered by § 3201 of this title.

    § 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.

    HISTORY: 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.

    History

    Amendments

    —1967. Deleted reference to 3 V.S.A. §§ 385 , 519, 8 V.S.A. § 144 , 16 V.S.A. §§ 1946 , 1946a, 24 V.S.A. §§ 2711 , 4013, and 28 V.S.A. § 148 .

    § 5820. Purpose.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —1967. Subsec. (a): Original section designated subsec. (a).

    Subsec. (b): Added.

    ANNOTATIONS

    Cited.

    Cited in Oxx v. Department of Taxes, 159 Vt. 371, 618 A.2d 1321, 1992 Vt. LEXIS 189 (1992); Finberg v. Murnane, 159 Vt. 431, 623 A.2d 979, 1992 Vt. LEXIS 211 (1992); Tarrant v. Department of Taxes, 169 Vt. 189, 733 A.2d 733, 1999 Vt. LEXIS 79 (1999).

    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.

    HISTORY: Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.

    § 5822. Tax on income of individuals, estates, and trusts.

    1. 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:

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      2. Heads of households:

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      3. Unmarried individuals (other than surviving spouse or head of household):

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      4. Married individuals filing separate returns:

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      5. Estates and trusts:

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      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.
    2. 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.
    3. 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:
        1. additional taxes on qualified retirement plans, including individual retirement accounts and medical savings accounts and other tax-favored accounts;
        2. recapture of the federal investment tax credit attributable to the Vermont portion of the investment;
        3. 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.
      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: credit for people who are elderly or permanently totally disabled, investment tax credit attributable to the Vermont-property portion of the investment, and child care and dependent care credits. (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: credit for people who are elderly or permanently totally disabled, investment tax credit attributable to the Vermont-property portion of the investment, and child care and dependent care credits.
      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.
    4. 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.

    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

    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

    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% of not over $195,450.00 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

    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% of not over $118,975.00 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

    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 the not over $6,100.00 amount of taxable income over $2,600.00 Over $6,100.00 but $318.00 plus 7.6% of not over $9,350.00 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

    HISTORY: 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. 1 59 (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.

    History

    Revision note

    —2018. Revised the tables in subdivs. (a)(1)-(5) in accordance with 2018, No. 11 (Sp. Sess.), § H.2(b) and (c).

    —2013. In subsec. (b), substituted “As used in” for “For the purposes of” preceding “this section” to conform to V.S.A. style.

    Editor’s note

    —2009. In accordance with subsec. (b), the dollar amounts in subsec. (a) have been indexed and represent 2009 indexed dollar amounts.

    Amendments

    —2019. Subdiv. (c)(1)(B): Inserted “the” following “recapture of,” and substituted “attributable to the Vermont portion of the investment” for “and increased by 76 percent of the Vermont-property portion of the business solar energy investment tax credit component of the federal investment tax credit recapture for the taxable year”. su

    Subdiv. (d)(2): Deleted “business” preceding “solar energy,” and substituted “not” for “no”. su

    —2018 (Sp. Sess.). Subdiv. (b)(2): Added the proviso following “year 2003”.

    Subdiv. (d)(3): Added.

    —2015. Subdiv. (a)(6): Added.

    —2013 (Adj. Sess.). Subdiv. (d)(1): Substituted “credit for people who are elderly or permanently totally disabled” for “elderly and permanently totally disabled credit” following “as follows:”.

    —2009 (Adj. Sess.) Subsec. (d): Amended generally; extended prospective repeal of solar tax credit to January 1, 2012.

    —2009. Subsec. (a): Taxable income amounts and rates updated throughout.

    Subsec. (d) effective January 1, 2009: Inserted “attributable to the Vermont-property portion of the investment” after “credit” in the first sentence; inserted “; provided, however, that a taxpayer who receives any grants or similar funding from the clean energy development fund created under 10 V.S.A. § 6523 is not eligible to claim the business solar energy tax credit for that project; and provided, further that, for investments made on or after October 1, 2009, the tax credit will only apply to project costs not covered by any grants or similar funding from any public or private program that assists in providing capital investment for a renewable energy project.” after “Code” in the second sentence; and added the last sentence by Act Nos. 45 and 54. 2009 amendments apply to investments made on or after January 1, 2009.

    Subsec. (d) effective January 1, 2011: Deleted the second sentence by Act Nos. 45 and 54.

    —2007 (Adj. Sess.). Subdiv. (c)(1)(B): Inserted “and increased by 76 percent of the Vermont-property portion of the business solar energy investment tax credit component of the federal investment tax credit recapture for the taxable year” following “tax credit”.

    Subsec. (d): Added the second sentence.

    —2005. Subsec. (d): Substituted “elderly and permanently totally disabled credit” for “retirement income credit” preceding “investment tax credit” and inserted “and” thereafter.

    —2003. Subdiv. (c)(1)(A): Inserted “and other tax-favored accounts” following “savings accounts”.

    —2001 (Adj. Sess.) Amended generally.

    Applicability of 2003 amendment. 2003, No. 66 , § 326(g) provides that § 305 of that act, which amends subdiv. (c)(1)(A) of this section, shall apply to taxable years beginning on or after January 1, 2003.

    Effective date of business energy tax credits. 2007, No. 92 (Adj. Sess.), § 29, provides: “Secs. 27 [which amended this section] and 28 [which enacted § 5930z of this title] of this act (business energy tax credits) shall apply to carry-through and recapture of federal credits related to taxable year 2008 and after.”

    Effective date of business energy tax credits. 2007, No. 92 (Adj. Sess.), § 29 as amended by 2009, No. 45 , § 10, provides: “Sec. 27 [which amended this section] and 28 [which enacted § 5930z of this title] of this act (business energy tax credits) shall apply to federal credits, including recapture, related to taxable year 2008 and after.”

    Effective date and applicability of enactment of subdiv. (a)(6). 2015, No. 57 , § 99(11) provides that Sec. 65 (minimum tax) [which enacted subdiv. (a)(6)], notwithstanding 1 V.S.A. § 214 , shall take effect retroactively to January 1, 2015, and apply to taxable year 2015 and after.

    Retroactive effective date and applicability of 2018 (Sp. Sess.) amendment. 2018, No. 11 (Sp. Sess.), § H.31(a)(1) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. H.1-H.6 (income tax changes) [H.3 amended this section] shall take effect retroactively on January 1, 2018 and apply to taxable year 2018 and after.”

    Retroactive effective date of 2019 amendment. 2019, No. 51 , § 41(1), provides that notwithstanding 1 V.S.A. § 214 , the amendment to this section, by section 4 of that act, shall take effect retroactively on January 1, 2019 and apply to taxable years beginning on January 1, 2019 and thereafter.

    Personal income tax rates. 2018, No. 11 (Sp. Sess.), § H.2(b) provides: “For taxable year 2018 and after, income tax rates under 32 V.S.A. § 5822(a)(1) -(5), after taking into consideration any inflation adjustments to taxable income as required by 32 V.S.A. § 5822(b)(2) , shall be as follows:

    “(1) taxable income that without the passage of this act would have been subject to a rate of 3.55 percent shall be taxed at the rate of 3.35 percent instead;

    “(2) taxable income that without the passage of this act would have been subject to a rate of 6.80 percent shall be taxed at the rate of 6.60 percent instead;

    “(3) taxable income that without the passage of this act would have been subject to a rate of 7.80 percent shall be taxed at the rate of 7.60 percent instead;

    “(4) taxable income that without the passage of this act would have been subject to a rate of 8.80 percent or 8.95 percent shall be taxed at the rate of 8.75 percent instead; the tax brackets for taxable income taxed at 8.80 percent and 8.95 percent in taxable year 2017 shall be combined to be taxed at a rate of 8.75 percent for taxable year 2018 and after.”

    ANNOTATIONS

    Constitutionality.

    This section violated taxpayers’ equal protection rights in imposing State personal income tax on federal recapture of federal investment tax credit where taxpayers had not derived State income tax benefit from credit. (Decided under prior law.) Oxx v. Department of Taxes, 159 Vt. 371, 618 A.2d 1321 (1992).

    Nonresident’s income tax on his adjusted gross income earned in Vermont was not discriminatory so as to violate his constitutional rights of equal protection of the laws or privileges and immunities, and did not tax property beyond jurisdiction of Vermont in violation of due process, even though nonresident taxpayer with income from sources outside Vermont would pay at higher progressive rate than resident taxpayer with equivalent income from Vermont, but without income from other sources. (Decided under prior law.) Wheeler v. State, 127 Vt. 361, 249 A.2d 887, 1969 Vt. LEXIS 238 (1969), appeal dismissed, 396 U.S. 4, 90 S. Ct. 24, 24 L. Ed. 2d 4 (1969).

    Taxpayer had burden of demonstrating discrimination to extent that was arbitrary and unreasonable, and in demonstrating such discrimination, he was required to demonstrate that he was disadvantaged compared to another in an equivalent position. (Decided under prior law.) Wheeler v. State, 127 Vt. 361, 249 A.2d 887, 1969 Vt. LEXIS 238 (1969), appeal dismissed, 396 U.S. 4, 90 S. Ct. 24, 24 L. Ed. 2d 4 (1969).

    Construction.

    Under Vermont’s income tax scheme, income derived from federal obligations is necessarily included in calculating the Vermont tax because interest earned on federal obligations is included as income for federal tax purposes; thus, that which is taxable as federal income is taxable as State income due to the piggyback nature of Vermont’s taxing scheme. (Decided under prior law.) Hirsch v. Department of Taxes, 164 Vt. 321, 675 A.2d 1318 (1995).

    Although the Department of Taxes claimed that the adjustment method provides an exemption for federal obligation income consistent with the requirements of 31 U.S.C. § 3124 and First National Bank of Atlanta v. Bartow County Bd. of Tax Assessors, 470 U.S. 583 (1985), the pro rata adjustment in Bartow was acceptable because the federal obligations were deducted from the tax base to the extent they were represented there before the tax was computed, but Vermont’s pro rata adjustment does not accurately exempt the immune income because it is applied to the Vermont tax and not to income that is in the tax base. (Decided under prior law.) Hirsch v. Department of Taxes, 164 Vt. 321, 675 A.2d 1318 (1995).

    Validity.

    This section as it existed during 1989 through 1992 violates 31 U.S.C. § 3124, which exempts United States stocks and obligations from state taxation. (Decided under prior law.) Hirsch v. Department of Taxes, 164 Vt. 321, 675 A.2d 1318 (1995).

    Because Vermont and federal taxes are progressive, the adjustment method provided for exempt income in this section will necessarily result in a higher tax when it is applied to the Vermont tax rather than to income; inasmuch as the adjustment method taxes federal interest income, it violates 31 U.S.C. § 3124. (Decided under prior law.) Hirsch v. Department of Taxes, 164 Vt. 321, 675 A.2d 1318 (1995).

    Cited.

    Cited in Stowell v. Simpson, 143 Vt. 625, 470 A.2d 1176, 1983 Vt. LEXIS 593 (1983); Piche v. Department of Taxes, 152 Vt. 229, 565 A.2d 1283, 1989 Vt. LEXIS 151 (1989); Stone v. Errecart, 165 Vt. 1, 675 A.2d 1322, 1996 Vt. LEXIS 30 (1996).

    § 5823. Vermont income of individuals, estates, and trusts.

    1. 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.

    2. 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:
        1. under an agreement not to compete with a business operating in Vermont;
        2. for goodwill associated with the sale of a Vermont business; or
        3. 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 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 lottery proceeds.
    3. 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.
    4. 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.

    HISTORY: 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.

    History

    Amendments

    —2011. Subdiv. (a)(8): Added.

    —2009 (Adj. Sess.) Subdiv. (a)(6): Repealed.

    Subdiv. (b)(3): Deleted “and also excluding income received for a dramatic performance in a commercial film production to the extent such income would be excluded from personal income taxation in the state of residence” following “performed within this state”.

    Subdiv. (b)(4)(C): Deleted “but excluding income received for a dramatic performance in a commercial film production to the extent such income would be excluded from personal income taxation in the state of residence” following “sale of the business”.

    —2007. Subdiv. (a)(7): Repealed.

    —2005. Subsec. (a): Deleted “estate or trust” following “individual”; substituted ‘individual” for “taxpayers” and inserted “and the Vermont income of a resident estate or trust is its gross income for the taxable year” following “taxable year” in the introductory paragraph.

    Subsec. (b): Substituted “individual or the gross income of an estate or trust” for “taxpayer” in the introductory paragraph.

    —2003 (Adj. Sess.). Subdiv. (a)(1): Act No. 70 substituted “5811(21)(B)(i)” for “5811(20)(C)(i)”.

    Subdiv. (b)(6): Added by Act No. 152.

    —2001 (Adj. Sess.) Subdiv. (a)(1): Act No. 140 inserted “and not subtracted under subdivision 5811(20)(C)(i) of this chapter”.

    Subdiv. (a)(2): Act No. 144 amended subdiv. generally.

    Subdiv. (b)(3): Amended generally.

    Subsec. (d): Added.

    —1997 (Adj. Sess.). Subdiv. (a)(5): Act No. 156 added “and that portion of expenses”, etc., at the end of the sentence.

    Subdiv. (a)(7): Added by Act No. 79.

    Subsec. (b): Act No. 156 added the phrase beginning “and also excluding income received” at the end of subdiv. (b)(3) and the phrase beginning “but excluding income received” at the end of subdiv. (b)(4)(C).

    —1997. Subdiv. (a)(2): Amended generally.

    Subdiv. (b)(3): Amended generally.

    Subdiv. (b)(4): Deleted “of the taxpayer” preceding “to the extent” in the introductory paragraph.

    —1995 (Adj. Sess.) Subsec. (a): Act No. 71 added subdiv. (3).

    Subdiv. (a)(6): Added by Act No. 174.

    Subdiv. (b)(3): Act No. 71 inserted “and also excluding funds received through the federal armed forces educational loan repayment program under 10 U.S.C. Chapters 109 and 1609” following “services”.

    Subdiv. (b)(4): Act No. 169 inserted “(including, but not limited to, income derived from S corporations, limited liability companies, partnerships and sole proprietorships)” preceding “to the extent that.”

    —1995. Subdiv. (b)(4): Amended generally.

    —1993. Subdiv. (b)(4): Inserted “including any compensation received under an agreement not to compete with a business operating in Vermont and any compensation received for goodwill associated with the sale of a Vermont business” following “state”.

    —1991. Subdiv. (a)(3): Repealed.

    —1989 (Adj. Sess.) Subdiv. (b)(5): Added.

    —1989. Subdiv. (a)(2): Added “earned outside the state” following “services”.

    Subdiv. (a)(4): Repealed.

    —1979 (Adj. Sess.) Subdiv. (a)(5): Added.

    —1969 (Adj. Sess.) Subsec. (a): Rephrased.

    —1967. Section amended generally.

    Applicability of 2009 (Adj. Sess.) amendment to subsec. (b). 2009, No. 160 (Adj. Sess.), § 62(17) provides that subsec. (b), relating to the repeal of exclusion of certain income received for a dramatic performance in a commercial film production, shall apply to taxable years beginning on and after January 1, 2013.

    2003 No. 152 (Adj. Sess.) amendment. 2003, No. 152 (Adj. Sess.), § 23(4) provided that § 14 of that act, which added subdiv. (b)(6) of this section, shall apply to taxable years beginning on or after January 1, 2005.

    Applicability of 2002 amendments to subdiv. (a)(1). 2001, No. 140 (Adj. Sess.), § 43(1) provides that § 6 of that act [which amended this section] shall apply to taxable years beginning on or after January 1, 2002.

    Applicability of amendment to subdivs. (a)(2) and (b)(3). 2001, No. 144 (Adj. Sess.), § 42(1), provides that subdivs. (a)(2) and (b)(3) (income tax exemption for military pay) shall apply to taxable years beginning on or after January 1, 2003.

    Applicability of subsec. (d). 2001, No. 144 (Adj. Sess.), § 42(9), provides that § 29 of that act [which adds subsec. (d) to this section] shall apply to taxable years beginning on or after January 1, 2002.

    Effective date and applicability—1997 (Adj. Sess.). 1997, No. 156 (Adj. Sess.), § 54 makes the amendment to subsec. (b) by that act effective for tax years beginning on and after January 1, 1998 and ending on or before December 31, 2000; however, pursuant to 1999, No. 159 (Adj. Sess.), § 27, the provisions of 1997, No. 156 (Adj. Sess.), § 54 were repealed.

    1997, No. 156 (Adj. Sess.), § 59, provides that the amendment to subsec. (a) of this section by § 4 of that act (disabled access credit) shall apply to taxable years beginning on and after January 1, 1998.

    1997, No. 79 (Adj. Sess.), § 4, eff. July 1, 1997, provided in part: “That part of Sec. 1 of this act adding § 2879c (Tax Exemption) to the extent that it affects taxation of income earned or received by participants or beneficiaries, and Sec. 2 of this act [which amended this section] shall take effect for taxable years beginning on and after January 1, 1999, and shall terminate on the effective date of any enactment by Congress which exempts income earned or received from the Vermont higher education savings plan from federal taxation under the Internal Revenue Code.”

    1997 amendment. 1997, No. 50 , § 48(b), provided that the amendment to subdivs. (a)(2) and (b)(3) of that section by § 13 of that act shall apply to tax years beginning on and after Jan. 1, 1997.

    1995 (Adj. Sess.) amendment. 1995, No. 71 (Adj. Sess.), § 2, eff. Feb. 14, 1996, provided in part that § 1 of that act, which amended this section, shall apply to tax years beginning on and after Jan. 1, 1996 and on or before Dec. 31, 1998; however, 1997, No. 8 , § 1, and 1997, No. 50 , § 41, both provided that 1995, No. 71 (Adj. Sess.), § 1, shall not be repealed on Jan. 1, 1999, but shall continue in effect until further action of the General Assembly.

    1995, No. 169 (Adj. Sess.), § 27, eff. May 15, 1996, provided in part that § 23 of that act, which amended subdiv. (b)(4) of this section, would apply to tax years beginning on or after Jan. 1, 1997, but before Jan. 1, 2000; however, 1999, No. 49 , § 68, eff. June 2, 1999, provided: “Notwithstanding Sec. 27 of No. 169 of the Acts of 1995 (Adj. Sess.), Secs. 21 through 24 of that act (relating to the taxation of S corporations and to the taxation of partnerships and limited liability companies) shall also apply to tax years beginning on and after January 1, 2000. Sections 5915 and 5921 of Title 32 shall continue in effect as amended in Acts 71 and 156 of the Acts of 1998”.

    1995, No. 174 (Adj. Sess.), § 8 provides in part that § 6 of that act, which added subdiv. (a)(6) in this section, shall apply to tax years beginning on and after January 1, 1996.

    1991 amendment. 1991, No. 32 , § 8, provided that the repeal of subdiv. (a)(3) of this section by § 6 of that act shall affect taxable years beginning on and after January 1, 1991.

    1989 (Adj. Sess.) amendment. 1989, No. 210 (Adj. Sess.), § 299(d), provided that the amendment to this section by § 297 of that act shall apply retroactively to taxable years beginning on or after January 1, 1990.

    1989 amendments. 1989, No. 119 , § 28(1), eff. June 22, 1989, provided that § 23(a) of that act, which repealed subdiv. (a)(4) of this section, shall apply to taxes payable for taxable years beginning on and after January 1, 1989. See note set out under § 5811 of this title.

    1989, No. 119 , § 28(2), eff. June 22, 1989, provided that § 22 of that act, which amended subdiv. (a)(2) of this section, shall take effect for taxable years beginning on and after January 1, 1990.

    1979 (Adj. Sess.) amendment. 1979, No. 105 (Adj. Sess.) § 49(2), eff. April 2, 1980, provided: “Secs. 44 [which added subsec. (a)(5) of this section] and 45 [which amended § 5811(18) of this title] shall take effect from passage [April 2, 1980] and affect taxable years beginning after January 1, 1979.”

    Repeal of tax expenditures in subdiv. (a)(6). 2009, No. 160 (Adj. Sess.), § 51(a)(1), provides that the tax expenditures in subdiv. (a)(6) (support payments for developmentally disabled persons) are repealed for tax years beginning on and after January 1, 2013.

    Use of tax expenditure savings. 2009, No. 160 (Adj. Sess.), § 52 provides: “Sec. 51(a)(1) of this act repeals the exemption from taxable income of certain amounts paid by the state to a taxpayer caring for a person with a developmental disability. It is the intent of the general assembly that the estimated $5,000.00 in additional revenue to the state that is raised by this repeal be appropriated to the department on disabilities, aging, and independent living within the agency of human services.”

    Repeal of subdiv. (a)(5). 2011, No. 45 , § 36l provides that subdiv. (a)(5) is repealed effective July 1, 2013.

    ANNOTATIONS

    New jobs credit.

    Where federal law allowed a partial income tax credit for wages paid certain new employees, but to the extent of the credit taken disallowed the deduction for wages paid, and taxpayer claimed a new jobs credit on his federal return, but in determining Vermont income tax liability (defined as 25 percent of federal tax liability) taxpayer calculated his federal tax liability as if he had not claimed any new jobs tax credit and had claimed the full deduction for wages paid, thereby reducing his Vermont tax liability, taxpayer followed a permissible procedure and could not be assessed by Vermont for the amount of the reduction, for Vermont definition of federal income tax liability for Vermont income tax purposes was “federal income tax . . . before the allowance of any . . . credit against that liability.” Overruling F. W. Woolworth v. Commissioner of Taxes, 130 Vt. 544, 298 A.2d 839 (1972), to the extent that it is inconsistent with decision in instant case. In re Knosher, 139 Vt. 285, 428 A.2d 1104, 1981 Vt. LEXIS 475 (1981).

    Residency.

    Taxpayer did not abandon his domicile in Vermont and was therefore liable as a resident for Vermont income tax, even though he was working on board a ship out of Virginia and spent some weekends with relatives in Virginia, where he recovered from injuries with relatives in Vermont, made visits to Vermont, listed a Vermont address on federal income tax returns and in employment records, was registered to vote in Vermont, and did not file Virginia income tax return. Piche v. Department of Taxes, 152 Vt. 229, 565 A.2d 1283, 1989 Vt. LEXIS 151 (1989).

    Cited.

    Cited in Winterset, Inc. v. Commissioner of Taxes, 144 Vt. 230, 475 A.2d 231, 1984 Vt. LEXIS 431 (1984).

    § 5824. Section 5824 shall apply to taxable years beginning on and after January 1, 2021. Adoption of federal income tax laws.

    The statutes of the United States relating to the federal income tax, as in effect on March 31, 2021, 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.

    HISTORY: 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. 1 60 (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.

    History

    Former § 5824. Former § 5824, relating to credit for changes in federal law, was derived from 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; and amended by 1967, No. 121 , § 6, eff. Jan. 1, 1968; 1979, No. 105 (Adj. Sess.), § 4; 1987, No. 82 , § 1, eff. June 9, 1987; 1987, No. 278 (Adj. Sess.), § 1, eff. June 21, 1988; 1989, No.119, § 1, eff. June 22, 1989; 1989, No. 222 (Adj. Sess.), § 5, eff. May 31, 1990; 1991, No. 32 , § 1, eff. May 18, 1991; 1991, No. 186 (Adj. Sess.), § 11; 1993, No. 49 , § 9, eff. May 28, 1993; 1995, No. 29 , § 1, eff. April 14, 1995; 1995, No. 169 (Adj. Sess.), § 15, eff. May 15, 1996; 1997, No. 50 , § 15, eff. Jan. 1, 1996; 1997, No. 156 (Adj. Sess.), § 5, eff. April 29, 1998; 1999, No. 49 , § 55, eff. June 2, 1999; 1999, No. 159 (Adj. Sess.), § 19; 2001, No. 67 , § 5, eff. June 16, 2001 and was repealed effective for taxable years 2001 and after, pursuant to 2001, No. 67 , § 6, eff. June 16, 2001.

    Amendments

    —2021. Act No. 9 substituted “2020” for “2019” following “December 31,” and inserted “, and shall continue in effect as adopted until amended, repealed, or replaced by act of the General Assembly” following “chapter”.

    Act No. 73 substituted “March 31, 2021” for “December 31, 2020”.

    —2019 (Adj. Sess.). Substituted “December 31, 2019” for “December 31, 2018”.

    —2019. Substituted “2018” for “2017”. su

    —2018 (Sp. Sess.) Substituted “on December 31, 2017” for “for taxable year 2016”.

    —2017. Substituted “year 2016” for “year 2015” following “taxable”.

    —2015 (Adj. Sess.). Substituted “taxable year 2015” for “taxable year 2014”.

    —2015. Substituted “2014” for “2013”.

    —2013 (Adj. Sess.). Substituted “2013” for “2012” following “taxable year”.

    —2013. Substituted “2012” for “2011” after “taxable year”; substituted “26 U.S.C. § 1” for “Section 1 of the Internal Revenue Code” after “income tax rates under”.

    —2011 (Adj. Sess.). Substituted “2011” for “2010”.

    —2011. Substituted “2010” for “2009” following “year”.

    —2009 (Adj. Sess.) Substituted “taxable year 2009” for “taxable year 2008”.

    —2009. Substituted “2008” for “2007.”

    —2007 (Adj. Sess.). Substituted “2007” for “2006” near the beginning.

    —2007. Substituted “2006” for “2005” following “taxable year”.

    —2005 (Adj. Sess.). Substituted “2005” for “2004”.

    —2005. Substituted “2004” for “2003” following “taxable year”.

    —2003. Substituted “2003” for “2002” following “taxable year”.

    —2003. Substituted “2002” for “2001” following “year”.

    —2002. This section contains the annual update of the Vermont link to federal income tax laws. Because Vermont income tax is based on federal taxable income (for tax years 2001 and after), rather than federal tax liability, this section has been reenacted in its new form.

    Retroactive effective dates and applicability of 2021 amendments. 2021, No. 9 , § 33(2) provides: “Secs. 23-23b (annual link to federal statutes) shall take effect retroactively on January 1, 2021 and shall apply to taxable years beginning on and after January 1, 2020.”

    2021, No. 9 , § 33(3) provides: “Sec. 23c (forgiven Paycheck Protection Program loan exclusion) shall take effect retroactively on January 1, 2021 and shall apply to taxable years beginning on and after January 1, 2021.” However, 2021, No. 9 , § 23c was repealed by 2021, No. 73 , § 25.

    2021, No. 73 , § 27(5) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. 23 (tax year 2021 link to federal income tax statutes) shall take effect retroactively on March 31, 2021 and shall apply to taxable years beginning on and after January 1, 2021.”

    2021, No. 73 , § 27(7) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. 25 (repeal; forgiven PPP loans included in taxable income) shall take effect retroactively on January 1, 2021.”

    Retroactive effective date and applicability of 2019 (Adj. Sess.) amendment. 2019, No. 175 (Adj. Sess.), § 31(3) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. 13-14 (annual link to federal statutes) [which amended this section and 32 V.S.A. § 7402 ] shall take effect retroactively on January 1, 2020 and apply to taxable years beginning on and after January 1, 2019.”

    Retroactive effective date and applicability of 2019 amendment. 2019, No. 51 , § 41(2), provides that notwithstanding 1 V.S.A. § 214 , the amendment to this section by § 5 of that act, shall take effect retroactively on January 1, 2019 and apply to taxable years beginning on January 1, 2018 and thereafter.

    Retroactive effective date and applicability of 2017 (Sp. Sess.) amendment. 2018, No. 11 (Sp. Sess.), § H.31(a)(2) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. H.7 (income tax link to the federal tax statutes) [which amended this section] shall take effect retroactively on January 1, 2018 and apply to taxable years beginning on January 1, 2017 and after.”

    Retroactive effective date and applicability of 2017 amendment. 2017, No. 73 , § (32)(1) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. 7 (annual update of income tax link to the IRC) [which amended this section] shall take effect retroactively on January 1, 2016 and apply to taxable years beginning on and after January 1, 2016.”

    Retroactive effective date and applicability of 2015 (Adj. Sess.) amendment. 2015, No. 134 (Adj. Sess.), § 41(1) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. 11 (annual update of income tax link to the IRC) shall take effect retroactively on January 1, 2015 and apply to taxable years beginning on and after January 1, 2015.”

    Effective date and applicability of 2015 amendment. 2015, No. 57 , § 99(11) provides that § 66 (annual update) [which amended this section], notwithstanding 1 V.S.A. § 214 , shall take effect retroactively to January 1, 2015, and apply to taxable years beginning on and after January 1, 2014.

    Applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70(3) provides that § 5 (annual income tax update) [which amended this section] shall take effect retroactively to January 1, 2014 and apply to taxable years beginning on and after January 1, 2013.

    Applicability of 2013 amendment. 2013, No. 73 , § 15(4) provides: “Sec. 20 (link to Internal Revenue Code) of this act shall apply to taxable years beginning on and after January 1, 2012.”

    Applicability of 2011 (Adj. Sess.) amendment. 2011, No. 143 (Adj. Sess.), § 2 (link to Internal Revenue Code) shall apply to taxable years beginning on and after January 1, 2011.

    Applicability of 2011 amendment. 2011, No. 45 , § 37(1) provided “Sec. 2 [which amended this section] (link to Internal Revenue Code) shall apply to taxable years beginning on and after January 1, 2010.”

    Applicability of 2009 (Adj. Sess.) amendment. 2009, No. 160 (Adj. Sess.), § 62(7) provided “Sec. 29 [which amended this section] (link to Internal Revenue Code) shall apply to taxable years beginning on and after January 1, 2009.”

    Applicability of 2009 amendment. 2009, No. 1 (Sp. Sess.), § H.58(5) provides that § H.26 [which amended this section] shall apply to taxable years beginning on and after January 1, 2008.

    Applicability of 2007 (Adj. Sess.) amendment. 2007, No. 190 (Adj. Sess.), § 102(7) provides: “Sec. 26 of this act [which amended this section] (update of link to federal income tax laws) shall apply to taxable years beginning on or after January 1, 2007; and Sec. 27 of this act [which amended 32 V.S.A. § 7475 ] (update of link to federal estate and gift tax laws) shall apply to estates of decedents with a date of death on or after, and gifts made on or after, January 1, 2007.”

    Applicability of 2007 amendment. 2007, No. 33 , § 12(1) provides that § 6 of that act, which amends this section, shall apply to taxable years beginning on or after January 1, 2006.

    Applicability of 2005 (Adj. Sess.) amendment. 2005, No. 94 (Adj. Sess.), § 10(2) provides that § 2 of that act shall apply to taxable years beginning on or after January 1, 2005.

    Applicability of 2005 amendment. 2005, No. 14 , § 15(h) provides: “Sec. 13 (update of link to federal income tax laws) shall apply to taxable years beginning on and after January 1, 2004.”

    Applicability of 2003 (Adj. Sess.). 2003, No. 152 (Adj. Sess.), § 26, eff. June 7, 2004, provided that § 24 of that act, which amends this section, shall apply to taxable years beginning on and after January 1, 2003.

    Applicability of 2003 amendment. 2003, No. 66 , § 326(i) provides that § 313 of that act, which amends this section, shall apply to tax years beginning on and after January 1, 2002.

    Applicability of enactment. 2001, No. 144 (Adj. Sess.), § 42(7), provides that § 23 of that act [which enacts this section] shall apply to taxable year 2001.

    Repeal of 2021, No. 9 , § 23c. 2021, No. 73 , § 25 provides: ‘2021 Acts and Resolves No. 9, Sec. 23c (forgiven PPP loans included in taxable income) is repealed.”

    ARPA exclusion of unemployment compensation from gross income; tax year 2020. 2021, No. 9 , § 23b provides: “(a) For taxable year 2020 only, 32 V.S.A. § 5824 , adoption of federal income tax laws, shall also adopt 26 U.S.C. § 85(c) as amended by Section 9042 of the American Rescue Plan Act, Pub. L. No. 117-2, pursuant to which the first $10,200.00 of unemployment compensation received is excluded from the gross income of a taxpayer whose taxable year 2020 adjusted gross income is less than $150,000.00.

    “(b) For taxable year 2020 only, notwithstanding 26 U.S.C. § 85(c) as amended by Section 9042 of the American Rescue Plan Act, Pub. L. No. 117-2, the definition of household income pursuant to 32 V.S.A. § 6061(4)(A) and (5) shall include all unemployment compensation received by a taxpayer in taxable year 2020.”

    § 5825. Credit for taxes paid to other states and provinces.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2001 (Adj. Sess.) Subsec. (a): Inserted “income” preceding “taxes imposed by” and deleted “except that any such credit for Canadian provincial tax shall be limited to the amount of the provincial tax which does not decrease the taxpayer’s federal income tax liability” at the end of the first sentence.

    —1997. Designated the existing provisions of the section as subsec. (a) and added subsec. (b).

    —1991 (Adj. Sess.). Deleted “foreign” preceding “taxes” and added “paid to other states and provinces” thereafter in the section heading, deleted “or” preceding “district” and added “or province” thereafter in the first and second sentences, and added “except that any such credit for Canadian provincial tax shall be limited to the amount of the provincial tax which does not decrease the taxpayer’s federal income tax liability” at the end of the first sentence.

    —1991. Deleted “or” following “United States”, inserted “or a province of Canada” following “Columbia” and substituted “the taxpayer’s” for “his” preceding “income” in the first sentence.

    —1981 (Adj. Sess.). In the first sentence following “income”, substituted “earned or received” for “derived” and added last sentence providing that the credit allowed resident individuals, estates or trusts for taxes paid to another state on income earned or received in that state shall not exceed that portion of the taxpayer’s Vermont income tax liability attributable to the out-of-state income.

    Applicability of 2002 amendments. 2001, No. 140 (Adj. Sess.), § 43(1) provides that § 8 of that act [which amended this section] shall apply to taxable years beginning on or after January 1, 2002.

    1991 amendment. 1991, No. 67 , § 27(d), eff. June 19, 1991, provided that the amendment to this section by § 26 of that act shall apply retroactively to taxable years beginning on and after January 1, 1990.

    1991 (Adj. Sess.) amendment. 1991, No. 186 (Adj. Sess.), § 37, eff. May 7, 1992, provided that § 12 of that act, which amended that section, shall be effective for taxable years beginning on or after Jan. 1, 1992.

    Application of 1981 (Adj. Sess.) amendment. 1981, No. 134 (Adj. Sess.), § 2, eff. April 2, 1982, provided that the amendment to this section shall affect taxable years beginning on and after January 1, 1982.

    ANNOTATIONS

    Construction.

    Statute as it existed in 1989, prior to enactment of modifying legislation, entitled taxpayers to claim a credit for taxes paid by their S corporation to other states that did not treat S corporation income on a pass-through basis; statute did not amount to a subsidy of other states’ decisions to tax Vermont S corporations at the corporate level, and if credit were found to be unauthorized, policy favoring small businesses by insulating them from double taxation would be compromised, and taxpayers would be unreasonably penalized. Tarrant v. Department of Taxes, 169 Vt. 189, 733 A.2d 733, 1999 Vt. LEXIS 79 (1999) (decided under prior law).

    This section extends only to the final amount retained by the other state, not to the amount withheld, so that where more than the tax liability to other state was withheld and a refund received, the credit applied only to the actual liability and not to the amount withheld. Stephens v. Vermont Dept. of Taxes, 134 Vt. 178, 353 A.2d 355, 1976 Vt. LEXIS 624 (1976).

    Construction with other law.

    Because 1996 statute, which explicitly disallowed credit for taxes imposed by other jurisdictions on S corporation income, was an amendment to existing tax credit provision and not a clarification of preexisting law, taxpayers were entitled to a credit on their 1989 income tax return for their pro rata share of taxes paid by their S corporation to states that did not recognize pass-through taxation treatment of such corporations. Tarrant v. Department of Taxes, 169 Vt. 189, 733 A.2d 733, 1999 Vt. LEXIS 79 (1999) (decided under prior law).

    Taxpayers were not precluded from claiming tax credit under this section on grounds that Vermont allowed only those federal credits specifically identified in § 5811(4) of this title, since § 5811(4) was not the only section of State income tax chapter that contained available federal tax credits. Tarrant v. Department of Taxes, 169 Vt. 189, 733 A.2d 733, 1999 Vt. LEXIS 79 (1999) (decided under prior law).

    § 5825a. Credit for Vermont Higher Education Investment Plan contributions.

    1. 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.
    2. 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); or
      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.
    3. 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.

    HISTORY: 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.

    History

    Amendments

    —2021. Subdiv. (b)(2): Substituted “is used for a qualifying” for “qualifies as an” preceding “expense”.

    —2019 (Adj. Sess.). Subsec. (a): Act No. 154 added: “, provided the account is provided directly by the Vermont Student Assistance Corporation to the participant” at the end of the subsection.

    Subsec. (b): Act Nos. 154 and 175 amended subsec. (b) generally, redesignated the former last sentence of subsec. (b) as subsec. (c), and substituted “subsection (b) of this section” for “this subsection” in subsec. (c).

    —2019. Subsec. (b): Substituted “used exclusively for costs of attendance at an approved postsecondary education institution as defined in 16 V.S.A. § 2822(6) ” for “excluded from gross income in the taxable year under 26 U.S.C. § 529, as amended” in the first sentence. su

    —2005 (Adj. Sess.). In subsecs. (a) and (b), substituted “ten percent” for “five percent”; and in subsec. (a), substituted “$2,500.00 per beneficiary” for “$2,000.00 per beneficiary”.

    2019 amendment. 2019, No. 51 , § 41(1), provides that notwithstanding 1 V.S.A. § 214 , the amendment to this section, by § 19 of that act, shall take effect retroactively on January 1, 2019 and apply to taxable years beginning on January 1, 2019 and thereafter.

    Applicability of 2005 (Adj. Sess.) amendment. 2005, No. 207 (Adj. Sess.), § 26(4) provides that § 6 of that act shall apply to contributions made in taxable years 2007 and after.

    Applicability of 2003 enactment. 2003, No. 65 , § 3 provides that that act, which enacts this section, shall apply to contributions in taxable years beginning on or after January 1, 2004.

    § 5826. Repealed. 2009, No. 160 (Adj. Sess.), § 51(a)(2), eff. Jan. 1, 2013.

    History

    Former § 5826. Former § 5826, relating to credit for income from commercial film production, was derived from 1997, No. 156 (Adj. Sess.), § 53, eff. April 29, 1998 and amended 2009, No. 160 (Adj. Sess.), § 51.

    § 5827. Repealed. 1989, No. 119, § 23(b), eff. June 22, 1989.

    History

    Former § 5927. Former § 5927, relating to student tax credit, was derived from 1966, No. 61 (Sp. Sess.). § 1, eff. Jan. 1, 1966 and amended by 1967, No. 121 , § 8, eff. Jan. 1, 1968.

    § 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.

    HISTORY: Added 1997, No. 103 (Adj. Sess.), § 11, eff. April 23, 1998.

    History

    Prior repeal. Former § 5828, repealed by 1975, No. 35 , eff. April 8, 1975, relating to maximum tax liability, was derived from 1967, No. 121 , § 9. The repeal was applicable to tax years commencing January 1, 1975 and thereafter.

    § 5828a. Repealed. 1991, No. 32, § 7, eff. May 18, 1991.

    History

    Former § 5828a. Former § 5828a, relating to tax credits for those with adjusted gross income under $ 7,000.00, was derived from 1971, No. 94 , § 1, eff. April 22, 1971; amended by 1979, No. 70 , § 2; 1981, No. 170 (Adj. Sess.), § 16.

    Application of repeal. 1991, No. 32 , § 8, provided that the repeal of this section by § 7 of that act shall affect taxable years beginning on and after January 1, 1991.

    § 5828b. Earned income tax credit.

    1. 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 36 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 earned income that is earned or received during the period of the individual’s residency in this State bears to the individual’s total earned income.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2018 (Sp. Sess.). Subsec. (a): Substituted “36 percent“ for “32 percent” and substituted “that” for “which” following “percentage”.

    —2005. Subsec. (a): Deleted the subdiv. (1) and (2) designations and the last sentence of the former undesignated paragraph.

    —1999 (Adj. Sess.). Subdiv. (a)(2): Substituted “32 percent” for “25 percent”.

    —1999. Subsec. (a): Amended generally.

    Retroactive effective date and applicability of 2018 (Sp. Sess.) amendment. 2018, No. 11 (Sp. Sess.), § H.31(a)(1) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. H.1-H.6 (income tax changes) [H.4 amended this section] shall take effect retroactively on January 1, 2018 and apply to taxable year 2018 and after.”

    1999 (Adj. Sess.). 1999, No. 119 (Adj. Sess.), § 16, eff. May 18, 2000, provided in part that the amendment to this section by § 2 of that act shall apply to tax years beginning on and after January 1, 2000.

    1999 amendment. 1999, No. 49 , § 38(o) provided that the amendment to this section by § 36 of that act shall apply to tax years beginning on or after January 1, 2000.

    Application of section. 1987, No. 258 (Adj. Sess.), § 3, eff. June 16, 1988, provided that the provision of the act enacting this section shall affect income taxes for taxable years beginning on and after January 1, 1988.

    § 5828c. Low-income child and dependent care credit.

    A resident of this State with federal adjusted gross income less than $30,000.00 (or $40,000.00 for married, filing jointly) shall be eligible for a refundable credit against the tax imposed under section 5822 of this title. The credit shall be equal to 50 percent of the federal child and dependent care credit allowed to the taxpayer for the taxable year for child or dependent care services provided in this State in a registered home or licensed facility certified by the Agency of Human Services as meeting national accreditation or national credential standards endorsed by the Agency. A credit under this section shall be in lieu of any child and dependent care credit available under subsection 5822(d) of this title.

    HISTORY: Added 2001, No. 144 (Adj. Sess.), § 24, eff. June 21, 2002; amended 2003, No. 70 (Adj. Sess.), § 39, eff. March 1, 2004.

    History

    Amendments

    —2003 (Adj. Sess.). Substituted “subsection 5822(d)” for “subsection 5811(4)” in the third sentence.

    Applicability of enactment.

    2001, No. 144 (Adj. Sess.), § 42(8), provides that § 24 of that act [which enacts this section] shall apply to taxable years 2003 and after.

    § 5829. Repealed. 1993, No. 210 (Adj. Sess.), § 40, eff. Jan. 1, 1994.

    History

    Former § 5829. Former § 5829, relating to tax credit account of sales and use taxes, was derived from 1969, No. 144 , § 3, eff. June 1, 1969; and amended by 1971, No. 73 , §§ 13, 14, 44, eff. April 26, 1971; 1973, No. 202 (Adj. Sess.), § 1, eff. date, see note set out below; 1975, No. 243 (Adj. Sess.), § 6, eff. date, see note set out below; 1977, No. 118 (Adj. Sess.), § 17, eff. Feb. 3, 1978, and shall apply to tax years beginning Jan. 1, 1978, and thereafter; 1981, No. 165 (Adj. Sess.), § 1; No. 170 (Adj. Sess.), § 17; 1983, No. 2 (Adj. Sess.), §§ 6, 7, eff. July 28, 1983; 1987, No. 113 , § 3, eff. June 26, 1987; 1989, No. 19 ; 1991, No. 32 , § 14, eff. June 1, 1991; No. 32, § 15, eff. July 1, 1992; No. 67, § 22, eff. June 19, 1991; and 1993, No. 1 (Sp. Sess.), § 5, eff. Jan. 1, 1993.

    Application of repeal. 1993, No. 210 (Adj. Sess.), § 40, provided for the repeal of this section effective on January 1, 1994, to apply to returns filed for tax year 1994 and thereafter.

    § 5830. Repealed. 1977, No. 116 (Adj. Sess.), eff. Jan. 27, 1978.

    History

    Former § 5830. Former § 5830, relating to individual income tax surcharge, was derived from 1969, No. 144 , § 9, and amended by 1971, No. 260 (Adj. Sess.), §§ 46, 47.

    Application of repeal. 1977, No. 116 (Adj. Sess.), § 2, provided: “This act [which amended this section] shall take effect from passage [Jan. 27, 1978] and shall be effective for tax years commencing on or after January 1, 1977”.

    § 5830a. Interest tax.

    1. 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.
    2. 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.

    HISTORY: Added 1977, No. 67 .

    § 5830b. Tax credits; Entrepreneurs’ Seed Capital Fund.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2009. Substituted “Entrepreneurs’ ” for “Vermont” in the section heading; in subsec. (a), substituted “entrepreneurs”’ for “Vermont”, substituted “, as established in 10 V.S.A. § 291 , up to $7,150,000.00” for “comprising a maximum $5 million”, substituted “2020” for “2014”, and added “and by 8 V.S.A. § 6014 ” at the end of the first sentence; in the third sentence, substituted “$7,150,000.00” for “$5 million” and deleted “Vermont seed capital” before “fund”; and deleted “Vermont seed capital” before “fund” in the first sentence of subsec. (b).

    —2005 (Adj. Sess.). Subsec. (a): Substituted “$5 million” for “$2 million” in two places, “January 1, 2014” for “January 1, 2007”, “four percent” for “ten percent” and “20 percent” for “50 percent”.

    —2003 (Adj. Sess.). Subsec. (a): Deleted “$3 million of” preceding “capitalization”; substituted “seed” for “venture” throughout; inserted “comprising a maximum $2 million ”following “fund”; substituted “2007” for “1993” following “January 1” and “four” for “eight” preceding “succeeding”; substituted “$2” for “$3” preceding “million”.

    Subsec. (b): Substituted “seed” for “venture” following “Vermont” and “four” for “six” preceding “years”.

    —1993. Subsec. (a): Inserted “on or before January 1, 1993” preceding “shall entitle” in the first sentence.

    —1987. Substituted “fund” for “corporation” in the section heading.

    Subsec. (a): Rewrote the first sentence and substituted “fund” for “corporation” following “capital” at the end of the third sentence.

    Subsec. (b): Rewrote the first sentence and substituted “interest” for “stock” following “transfer of the” in the second sentence.

    Applicability of 2005 (Adj. Sess.) amendment. 2005, No. 184 (Adj. Sess.), § 18(c) provides that § 17b of that act, which amended this section, shall apply to taxable years beginning January 1, 2005, and thereafter.

    § 5830c. Tax credits; charitable investments in housing.

    1. 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.
    2. 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.
    3. 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:
        1. 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.
        2. The goal shall be to provide housing at a cost of no more than 30 percent of a household’s gross income.
        3. 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.
    4. 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:
        1. the acquisition, rehabilitation, or construction of affordable housing in Vermont by the eligible housing charity; or
        2. loans for affordable housing in Vermont; or
        3. 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.
    5. 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.
    6. 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.

    HISTORY: 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.

    History

    Revision note

    —2013. In the introductory language to subsec. (c), substituted “As used in ” for “For the purposes of ” to conform to V.S.A. style.

    Amendments

    —2005 (Adj. Sess.). Section amended generally.

    —2001 (Adj. Sess.) Added subdiv. (c)(2), redesignated former subdivs. (c)(2) through (5) as subdivs. (c)(3) through (6), in (c)(3), substituted “or” for “least two percentage points” preceding “below”, and amended subdiv. (c)(4) generally.

    Subdiv. (d)(4): Substituted “most recent bank prime loan rate” for “one year United States Treasury note rate as published during the first week of each calendar quarter” following “below the”.

    Application of section. 1989, No. 240 (Adj. Sess.), § 3, provided that this section, which was added by § 2 of that act, shall take effect on July 1, 1990 and shall apply to investments made on or after that date.

    § 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.

    HISTORY: Added 1991, No. 110 , § 2, eff. June 28, 1991; amended 1995, No. 169 (Adj. Sess.), § 25, eff. May 15, 1996.

    History

    Amendments

    —1995 (Adj. Sess.) Section amended generally.

    1995 (Adj. Sess.) amendment. 1995, No. 169 (Adj. Sess.), § 27, eff. May 15, 1996, provided in part that § 25 of that act, which amended this section, would apply to tax years beginning on and after Jan. 1, 1996.

    Application of section. 1991, No. 110 , § 5, provided that this section, which was enacted by § 2 of that act, shall take effect on June 28, 1991, and shall apply to taxable years beginning on and after January 1, 1990.

    CROSS REFERENCES

    Exemption of military personnel on combat zone duty from property tax late payment penalties, fees, or interest, see § 4609 of this title.

    § 5830e. 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 qualifying widow or widower:
      1. If the federal adjusted gross income of the taxpayer is less than or equal to $45,000.00, all federally taxable benefits received under the federal Social Security Act shall be excluded.
      2. If the federal adjusted gross income of the taxpayer is greater than $45,000.00 but less than $55,000.00, 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 $45,000.00, determined by:
        1. subtracting the federal adjusted gross income of the taxpayer from $55,000.00;
        2. dividing the value under subdivision (i) of this subdivision (B) by $10,000.00; and
        3. multiplying the value under subdivision (ii) of this subdivision (B) by the federally taxable benefits received under the Social Security Act.
      3. If the federal adjusted gross income of the taxpayer is equal to or greater than $55,000.00, 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:
      1. If the federal adjusted gross income of the taxpayer is less than or equal to $60,000.00, all federally taxable benefits received under the Social Security Act shall be excluded.
      2. If the federal adjusted gross income of the taxpayer is greater than $60,000.00 but less than $70,000.00, 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 $60,000.00, determined by:
        1. subtracting the federal adjusted gross income of the taxpayer from $70,000.00;
        2. dividing the value under subdivision (i) of this subdivision (B) by $10,000.00; and
        3. multiplying the value under subdivision (ii) of this subdivision (B) by the federally taxable benefits received under the Social Security Act.
      3. If the federal adjusted gross income of the taxpayer is equal to or greater than $70,000.00, no amount of the federally taxable benefits received under the Social Security Act shall be excluded under this section.

    HISTORY: Added 2018, No. 11 (Sp. Sess.), § H.5, eff. Jan. 1, 2018.

    History

    Retroactive effective date and applicability of 2018 (Sp. Sess.) enactment. 2018, No. 11 (Sp. Sess.), § H.31(a)(1) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. H.1-H.6 (income tax changes) [H.5 enacted this section] shall take effect retroactively on January 1, 2018 and apply to taxable year 2018 and after.”

    Subchapter 3. Taxation of Corporations

    CROSS REFERENCES

    Quarterly filing and payment, see chapter 151, subchapter 5A of this title.

    Corporation taxes, see chapter 211 of this title.

    § 5831. Name of tax.

    The tax imposed by this subchapter shall be known as the Vermont Corporate Income Tax.

    HISTORY: 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:

      Click to view

      or

      1. $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 (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
      2. 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
      3. For C corporations with Vermont gross receipts from $0-$2,000,000.00, the greater of the amount determined under subdivision (1) of this section or $300.00; or
      4. For C corporations with Vermont gross receipts from $2,000,001.00-$5,000,000.00, the greater of the amount determined under subdivision (1) of this section or $500.00; or
      5. For C corporations with Vermont gross receipts greater than $5,000,000.00, the greater of the amount determined under subdivision (1) of this section or $750.00.

    Vermont net income of the corpo- ration for the taxable year allo- cated or apportioned to Vermont under section 5833 of this title Tax $ 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

    HISTORY: 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.

    History

    Editor’s note—

    The text of subdiv. (2) is based on the harmonization of two amendments. During the 1991 session, subdiv. (2) was amended twice, by Act Nos. 32 and 67, resulting in two versions of the subdivision. In order to arrive at a single version of the subdivision, the language appearing in Act No. 67 was retained in view of the later effective date of that act. The changes that each of the amendments made are described in the amendment notes set out below.

    Amendments

    —2019. su

    —2011 (Adj. Sess.). Rewrote subdiv. (2)(C), which read: “$250.00 for all other corporations”; and added subdivs. (2)(D) and (2)(E).

    —2009. Redesignated subdiv. (2)(B) as subdiv. (2)(C) and added subdiv. (2)(B).

    —2005 (Adj. Sess.) Inserted “reduced by any Vermont net operating loss allowed under section 5888 of this title” following “corporation” in the first sentence of the introductory paragraph, and substituted “$21,338.00” for “$19,688.00” in subdiv. (1).

    —2003 (Adj. Sess.). Act No. 152, § 3, for taxable year 2006 only, substituted “6.00%” for “7.00%” following “0-10,000.00”, substituted “$600.00 plus 7.00% of the excess over $10,000.00” for “$700.00 plus 8.10% of the excess over $10,000.00” following “10,001.00-25,000.00”; substituted “$1,650.00 plus 8.75% of the excess over $25,000.00” for “$1,915.00 plus 9.20% of the excess over $25,000.00” following “25,001.00-250,000.00” and “$19,688.00 [later amended to $21,338.00] plus 8.90% of the excess over $250,000.00” for “$22,615.00 plus 9.75% of the excess over $250,000.00” following “250,001.00 and over” in the schedule of subdiv (1).

    Act No. 152, § 4, for taxable years 2007 and after, substituted “25,001.00 and over” for “25,001.00-250,000.00” and “8.5%” for “8.75%” following “$1,650.00” and deleted the tax provisions for $250,001.00 and over in the schedule of subdiv (1).

    —1997. Subdiv. (1): Amended generally.

    Subdiv. (2)(B): Substituted “$250.00” for “$150.00”.

    —1991. Act No. 32 substituted “$150.00” for “$75.00” in subdiv. (2).

    Act No. 67 added subdiv. (2)(A), designated the existing provisions of subdiv. (2) as subdiv. (2)(B) and added “for all other corporations” at the end of that subdivision.

    —1983 (Adj. Sess.). The first amendment (section 3) substituted “6.00%” for “5%” following “0-10,000.00”, “$600.00 plus 7.20%” for “$500.00 plus 6%” following “10,001.00-25,000.00”, “$1,680.00 plus 8.40%” for “$1,400.00 plus 7%” following “25,001.00-250,000.00” and “$20,580.00 plus 9.00%” for “$17,150.00 plus 7 1/2%” following “250,001.00 and over” in the schedule of subdiv. (1) and “$75.00” for “$50.00” in subdiv. (2).

    The second amendment (section 6(b)) substituted “5.50%” for “6.00%” following “0-10,000.00”, “$550.00 plus 6.60%” for “$600.00 plus 7.20%” following “10,001.00-25,000.00”, “$1,540.00 plus 7.70%” for “$1,680.00 plus 8.40%” following “25,001.00-250,000.00” and “$18,865.00 plus 8.25%” for “$20,580.00 plus 9.00%” following “250,001.00 and over” in the schedule of subdiv. (1).

    —1973 (Adj. Sess.). Section amended generally.

    —1969. Increased tax.

    Retroactive effective date—2019 amendment. 2019, No. 51 , § 41(1), provides that notwithstanding 1 V.S.A. § 214 , the amendment to this section, by § 7 of that act, shall take effect retroactively on January 1, 2019 and apply to taxable years beginning on January 1, 2019 and thereafter.

    Applicability—2011 (Adj. Sess.) amendment to subdiv. (2). 2011, No. 143 (Adj. Sess.), § 63(3) provides that § 16 of that act (increasing minimum tax on certain C corporations) shall apply to taxable years beginning on and after January 1, 2012.

    2005 (Adj. Sess.). 2005, No. 207 (Adj. Sess.), § 26(7) provides that § 14 of that act shall apply to taxable year 2006 only.

    2003, No. 152 (Adj. Sess.). 2003, No. 152 (Adj. Sess.), § 23(1), eff. June 7, 2004, provided that § 3 of that act, which amended this section, shall apply to taxable years beginning on or after January 1, 2006.

    2003, No. 152 (Adj. Sess.), § 23(2), eff. June 7, 2004, provided that § 4 of that act, which amended this section, shall apply to taxable years beginning on or after January 1, 2007.

    1997 amendment. 1997, No. 60 , § 100(k)(4), eff. June 26, 1997, provided that the amendment to this section by § 73 of that act shall apply to tax years beginning on and after Jan. 1, 1997.

    1991 amendments. 1991, No. 32 , § 34, provided that the amendment to this section by § 31 of that act shall apply to taxes payable for taxable years beginning on and after January 1, 1991.

    1991, No. 67 , § 27(b), eff. June 19, 1991, provided that the amendment to this section by § 26c of that act shall apply to taxable years beginning on and after January 1, 1991.

    1984 amendments; date for payment of first quarter 1984 increases. 1983, No. 144 (Adj. Sess.), § 6(b), provided in part: “(b) Sec. 3 (corporation income tax increase) shall take effect from passage [April 12, 1984] and affect taxable years beginning on and after January 1, 1984 and the increase imposed by Sec. 3 shall terminate for taxable years beginning on and after January 1, 1988. Any increase in the amount of payment due for the first quarter of calendar year 1984 as a result of Sec. 3 shall be due on the date of payment for the second quarter of that calendar year.”

    § 6(b) further provided for amendment of this section, such amendment to be effective for taxable years beginning on and after January 1, 1988.

    1973 amendment. 1973, No. 270 (Adj. Sess.), § 8, provided: “This act [which amended this section and §§ 5836, 9741, 9773 and added § 9745a to this title] shall take effect July 1, 1974, except that sections 1 [which amended this section] and 2 [§ 5836 of this title] shall apply to the entire tax year for any tax years commencing on or after January 1, 1974.”

    ANNOTATIONS

    Constitutional law.

    Where New York corporation operating in, among other places, Vermont, did not show that New York had the power to tax the total amount of its dividend and interest income without apportionment of the amount attributable to New York, no risk of double taxation arising from Vermont’s taxing of dividend and interest income apportioned to Vermont was shown, and whether Vermont’s tax would impose an unconstitutional burden on interstate commerce would not be decided. Mobil Oil Corp. v. Commissioner of Taxes, 136 Vt. 545, 394 A.2d 1147, 1978 Vt. LEXIS 664 (1978), aff'd, 445 U.S. 425, 100 S. Ct. 1223, 63 L. Ed. 2d 510, 1980 U.S. LEXIS 1292 (1980).

    Income.

    County court’s failure to make a finding on issue of whether corporation’s foreign subsidiaries were operated as separate entities was not error, because the question was not relevant to application of income tax to dividend income corporation received from the foreign subsidiaries: the tax is on the dividend income of the corporation, not the profits of the subsidiaries. In re Goodyear Tire & Rubber Co., 133 Vt. 132, 335 A.2d 310, 1975 Vt. LEXIS 350 (1975).

    Vermont net income.

    For purposes of annual apportioned net income tax on corporations the term “Vermont net income” means a corporation’s total net income before any allocation, not simply the income allocable to Vermont. Mobil Oil Corp. v. Commissioner of Taxes, 136 Vt. 545, 394 A.2d 1147, 1978 Vt. LEXIS 664 (1978), aff'd, 445 U.S. 425, 100 S. Ct. 1223, 63 L. Ed. 2d 510, 1980 U.S. LEXIS 1292 (1980).

    § 5832a. Digital business entity franchise tax.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.

    HISTORY: Added 2009, No. 1 (Sp. Sess.), § H.53, eff. Jan. 1, 2010.

    § 5833. Allocation and apportionment of income.

    1. 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 arithmetic average of the following factors, with the sales factor described in subdivision (3) of this subsection double-weighted:
      1. the average of the value of all the real and tangible property within this State (A) at the beginning of the taxable year and (B) at the end of the taxable year (but the Commissioner may require the use of the average of such value on the 15th or other day of each month, in cases where he or she determines that such computation is necessary to more accurately reflect the average value of property within Vermont during the taxable year), expressed as a percentage of all such property both within and outside this State;
      2. the total wages, salaries, and other personal service compensation paid during the taxable year to employees within this State, expressed as a percentage of all such compensation paid whether within or outside this State; and
      3. 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:
          1. 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; or
          2. the property is shipped from an office, store, warehouse, factory, or other place of storage in this State; and
            1. the purchaser is the U.S. government; or
            2. the corporation is not taxable in the State in which the purchaser takes possession.
        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:
          1. in the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this State;
          2. in the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this State;
          3. in the case of sale of a service, if and to the extent the service is delivered to a location in this State; and
          4. in the case of intangible property:
            1. 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
            2. that is sold, if and to the extent the property is used in this State, provided that:
              1. 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;
              2. 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 (iv)(I) of this subdivision (B); and
              3. 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 (B) 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 (B) or (C) of this subsection, or if the state of assignment cannot be determined under subdivision (B) of this subsection or reasonably approximated under subdivision (C) of this subsection, such receipt shall be excluded from the denominator of the receipts factor.
        5. The Commissioner of Taxes shall adopt regulations as necessary to carry out the purposes of this section.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2019. Subsec. (a): Amended generally. su

    Subdiv. (b)(3): Substituted “that” for “which”. su

    —2003. Subsec. (a): Added “with the sales factor described in subdivision (3) double-weighted” following “factors” at the end of the second sentence in the introductory paragraph.

    —1987. Subdiv. (a)(3): Added the second and third sentences.

    —1971. Subdiv. (b)(2): Substituted “any or all” for “either or both”.

    Effective date of amendments—

    2019, No. 51 , § 41(3), as amended by 2019, No. 131 (Adj. Sess.), § 301, provides: “Sec. 8 (market-based sourcing) shall take effect on January 1, 2020, and apply to tax years starting on or after that date.”

    2003 (Adj. Sess.). 2003, No. 152 (Adj. Sess.), § 23(3), eff. June 7, 2004, provided that § 5 of that act, which amends subsec. (a) of this section, shall apply to taxable years beginning on or after January 1, 2006.

    Applicability of enactment.

    Application of 1987 amendment. 1987, No. 82 , § 11(4), eff. June 9, 1987, provides that the amendment to this section by that act shall affect taxable years beginning on and after January 1, 1988.

    ANNOTATIONS

    Constitutionality.

    Where it does not appear that the formula of apportionment of corporate taxpayer’s income is intrinsically arbitrary, that it operates unreasonably and arbitrarily, or that the tax imposed violates the constitutional rights of the taxpayer, then it is valid. F.W. Woolworth Co. v. Commissioner of Taxes, 130 Vt. 544, 298 A.2d 839, 1972 Vt. LEXIS 314 (1972).

    Adjustments.

    Where statutory formula allocated to Vermont a fair and equitable portion of income of corporation doing business both within and outside Vermont, Commissioner of Taxes had no authority to modify the formula to include separate accounting to allow the corporation to report certain sales on a destination rather than an origin basis. In re Goodyear Tire & Rubber Co., 133 Vt. 132, 335 A.2d 310, 1975 Vt. LEXIS 350 (1975).

    An adjustment of the apportionment formula may be made where the application of the formula does not fairly represent the extent of the business activities within Vermont, and it is error for a court to disregard competent, clear, and cogent evidence on such question. F.W. Woolworth Co. v. Commissioner of Taxes, 130 Vt. 544, 298 A.2d 839, 1972 Vt. LEXIS 314 (1972).

    Formula used.

    In apportioning to Vermont its fair share of the income earned by a corporation with both Vermont and non-Vermont income, dividends received from corporation’s foreign subsidiaries were properly included. In re Goodyear Tire & Rubber Co., 133 Vt. 132, 335 A.2d 310, 1975 Vt. LEXIS 350 (1975).

    With respect to inclusion in Vermont net income of a corporation’s foreign subsidiary dividend income included in federal gross income for purposes of taking the deemed paid foreign tax credit on the federal return, and when allocating to Vermont that part of such dividend income fairly allocated to Vermont in view of the fact the corporation has income earned both within and outside the State, the allocation formula provided by this section may not be modified to allow consideration and allocation of the property, payroll, and sales of the foreign subsidiary, for the statute does not allow such modification. F. W. Woolworth Co. v. Commissioner of Taxes, 133 Vt. 93, 328 A.2d 402, 1974 Vt. LEXIS 293 (1974).

    The statutory formula for apportionment of corporate income for tax purposes is a three factor formula which is used by a majority of the states that impose corporate income taxes and is a practical approximation of the distribution of either a corporation’s sources of income or the social costs which it generates. F.W. Woolworth Co. v. Commissioner of Taxes, 130 Vt. 544, 298 A.2d 839, 1972 Vt. LEXIS 314 (1972).

    “Gross-up”.

    “Gross-up,” an accounting device by which a corporation may credit against its federal income tax liability foreign taxes paid by its foreign subsidiaries out of accumulated profits, is taxable Vermont income, but the formula by which the corporation’s Vermont income, as against its non-Vermont income, is found, must be modified to reflect the business activities of the subsidiaries conducted outside of Vermont. In re Goodyear Tire & Rubber Co., 133 Vt. 132, 335 A.2d 310, 1975 Vt. LEXIS 350 (1975).

    In income tax dispute, Commissioner of Taxes did not wrongfully exclude withholding taxes on dividends received from domestic corporation’s foreign subsidiaries from “gross-up”, which constitutes domestic corporation’s foreign subsidiary dividend income included in federal gross income for purposes of taking the deemed paid foreign tax credit on the federal return, and which is part of Vermont net income to the extent it is fairly allocable to Vermont, for the withholding tax is a direct tax on the dividend income realized by a domestic corporation, not a tax paid or deemed paid by a foreign subsidiary; and since the withholding tax is not a part of “gross-up,” directly traceable to the business of the foreign subsidiaries, but a portion of the dividend income of the domestic corporation paid to the country the subsidiary is located in, there is no basis for including property, payroll and sales of the subsidiaries as a factor in allocating to Vermont its fair share of the income. F. W. Woolworth Co. v. Commissioner of Taxes, 133 Vt. 93, 328 A.2d 402, 1974 Vt. LEXIS 293 (1974).

    While corporate taxpayer’s “gross-up” may be used to increase the Vermont net income by including the item of foreign subsidiary dividend in the Vermont net income, an adjustment should be made to reflect the activities of the foreign subsidiaries which have no business activity in Vermont. F.W. Woolworth Co. v. Commissioner of Taxes, 130 Vt. 544, 298 A.2d 839, 1972 Vt. LEXIS 314 (1972).

    Overseas income.

    Taxation of apportioned part of New York oil corporation’s dividend income earned outside the United States by corporation’s affiliates and subsidiaries did not violate Due Process Clause or Commerce Clause of the U.S. Constitution. Mobil Oil Corp. v. Commissioner of Taxes of Vermont, 445 U.S. 425, 100 S. Ct. 1223, 63 L. Ed. 2d 510, 1980 U.S. LEXIS 1292 (1980).

    Vermont’s taxation, on apportioned basis, of that part of New York oil corporation’s income represented by dividend income earned outside the United States by foreign affiliates and subsidiaries of the corporation, did not impose a burden upon foreign commerce on ground that because of the risk of multiple taxation by foreign nations allocation of the foreign source income to a single taxing situs, New York, was required, rather than apportionment among the states. Mobil Oil Corp. v. Commissioner of Taxes of Vermont, 445 U.S. 425, 100 S. Ct. 1223, 63 L. Ed. 2d 510, 1980 U.S. LEXIS 1292 (1980).

    The linchpin of apportionability in the field of state income taxation is the unitary business principle, under which New York oil corporation operating in Vermont must show, to establish that its dividend income earned outside the United States by its affiliates and subsidiaries was not subject to an apportioned Vermont tax, that the income was earned in the course of activities unrelated to the sale of petroleum products in Vermont; and the foreign source of the dividend income alone was not enough. Mobil Oil Corp. v. Commissioner of Taxes of Vermont, 445 U.S. 425, 100 S. Ct. 1223, 63 L. Ed. 2d 510, 1980 U.S. LEXIS 1292 (1980).

    Apportionability depends upon the unitary business principle, under which New York oil corporation operating in Vermont must show, to establish that its dividend income earned outside the United States by its affiliates and subsidiaries was not subject to an apportioned Vermont tax, that the income was earned in the course of activities unrelated to the sale of petroleum products in Vermont; and that the income was from entities legally separate from oil corporation, that is, corporation’s affiliates and subsidiaries, did not constitute the requisite showing, for one must look at the underlying activity of, not the form of investment in, the legally separate entities. Mobil Oil Corp. v. Commissioner of Taxes of Vermont, 445 U.S. 425, 100 S. Ct. 1223, 63 L. Ed. 2d 510, 1980 U.S. LEXIS 1292 (1980).

    Vermont’s interest in taxing an apportioned share of that part of income of New York oil corporation represented by dividend income earned outside the United States by foreign subsidiaries and affiliates of the corporation was not overridden by any interest of New York, the state of the corporation’s commercial domicile, such as the interest inherent in its ability, should it wish, to itself tax the dividend income; and no adequate justification could be found for the theory that the Commerce Clause requires allocation of dividend income wholly to a single situs, in this case the state of commercial domicile, New York, rather than apportionment among the states. Mobil Oil Corp. v. Commissioner of Taxes of Vermont, 445 U.S. 425, 100 S. Ct. 1223, 63 L. Ed. 2d 510, 1980 U.S. LEXIS 1292 (1980).

    Cited.

    Cited in Tarrant v. Department of Taxes, 169 Vt. 189, 733 A.2d 733, 1999 Vt. LEXIS 79 (1999).

    § 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.

    HISTORY: Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.

    History

    References in text.

    The U.S. Internal Revenue Code, referred to in this section, is codified as 26 U.S.C. § 1 et seq.

    Revision note

    —2021. Substituted “January 1, 1931” for “the above date” following “property as of” in the first sentence for clarity.

    § 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.

    HISTORY: Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.

    History

    Revision note—

    Reference in this section to “and chapter 3 of Title 11” was deleted because referenced chapter relating to foreign corporations, 11 V.S.A. §§ 651-862 , was repealed by 1971, No. 237 (Adj. Sess.), § 100.

    Reference in this section to chapter 209 of this title was deleted because referenced chapter relating to corporation fees, §§ 8001-8005 of this title, was repealed by 1981, No. 217 (Adj. Sess.), § 11.

    § 5836. Franchise tax on financial institutions.

    1. 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.
    2. 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.
    3. 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.
    4. , (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.

    HISTORY: 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.

    History

    Revision note

    —2021. In subsec. (b), substituted “12 C.F.R. § 204.2(a)(1)” for “Title 12, Part 204, section 204.2(a)(1) of the Code of Federal Regulations” to conform reference to V.S.A. style.

    —1997. Subsec. (h), as added by 1997, No. 79 (Adj. Sess.), § 3, redesignated as (j) to avoid conflict with subsec. (h) as added by 1995, No. 169 (Adj. Sess.), § 16, and subsec. (i) as added by 1997, No. 98 (Adj. Sess.), § 8d.

    Amendments

    —2015 (Adj. Sess.). Subsec. (c): Amended generally.

    —2003 (Adj. Sess.) Subsec. (e): Repealed.

    —1999 (Adj. Sess.). Substituted “financial institutions” for “banking corporations and loan associations” in the section heading, rewrote subsec. (a), and substituted “financial institution” for “bank, or trust company” in subsec. (i).

    —1997 (Adj. Sess.). Subsec. (i): Added by Act No. 98.

    Subsec. (j): Added by Act No. 79.

    —1997. Subsec. (b): Substituted “0.000096” for “0.000040” in the first sentence.

    —1995 (Adj. Sess.) Subsec. (h): Added.

    —1995. Subsec. (b): Inserted “in Vermont” following “month held” in the first sentence and following “deposits held” in the third sentence.

    —1991. Subsec. (b): Substituted “0.000040” for “.000020” in the first sentence.

    Subsec. (d): Repealed.

    Subsec. (e): Added “provided, however, that in no event shall a corporation pay an amount of tax less than $5,000.00 for its taxable year if its average monthly deposits exceed $50 million in any month of its taxable year, and $2,500.00 if its deposits were $50 million or less”.

    —1983 (Adj. Sess.) Section amended generally.

    —1973 (Adj. Sess.) Subsec. (a): Rephrased second sentence and deleted reference to 6 per cent of taxable income and inserted reference to tax rate schedules in § 5832.

    —1969. Increased tax.

    1997 amendment. 1997, No. 60 , § 100(k)(6), eff. June 26, 1997, provided that the amendment to subsec. (b) of this section by § 75 of that act shall apply beginning Aug. 1, 1997.

    1995 amendment. 1995, No. 29 , § 42, eff. April 14, 1995, provided that the amendment to this section by § 29 of that act shall apply to taxable months beginning on and after May 1, 1995, and ending before July 1, 1996.

    1991 amendment. 1991, No. 32 , § 30, provided: “The increase in the rate of the bank franchise tax in Sec. 20 [of the act, which amended this section] shall . . . apply retroactively to franchise exercised by corporations on and after January 1, 1991. Any deficiency in tax payments already made occasioned by the passage of this act shall be paid with the first quarterly installment payable after the effective date of this act, without interest up to the date such installment is due. The repeal of 32 V.S.A. § 5836(d) in Sec. 29 shall . . . apply retroactively to affect franchises exercised by corporations on and after January 1, 1991. The amendment of 32 V.S.A. § 5836(e) in Sec. 29 shall . . . apply retroactively to bank franchise taxes payable for taxable years beginning on or after January 1, 1991.”

    1983 (Adj. Sess.) amendment; date for payment of first quarter 1984 increases. 1983, No. 144 (Adj. Sess.), § 6(d), provided: “(d) Sec. 5 (bank franchise tax) shall take effect from passage [April 12, 1984] and apply to franchises exercised by such corporations on and after January 1, 1984, except that the limitations imposed by 32 V.S.A. § 5836(d) shall not apply until taxable years beginning on and after January 1, 1985. Any payment due for the first quarter of calendar year 1984, as a result of Sec. 5, shall be due on the date of payment for the second quarter of that calendar year.”

    1973 amendment. 1973, No. 270 (Adj. Sess.), § 8, provided: “This act [which amended this section and §§ 5836, 9741, 9773 and added § 9745a to this title] shall take effect July 1, 1974, except that §§ 1 [which amended this section] and 2 [§ 5836 of this title] shall apply to the entire tax year for any tax years commencing on or after January 1, 1974.”

    Application of 1967 effective date. 1967, No. 157 , § 2, provided: “This act shall be effective for all taxable years of these corporations and associations beginning after December 31, 1966.”

    Repeal of subsec. (e). 2003, No. 152 (Adj. Sess.), § 6 provides that 32 V.S.A. § 5836(e) (bank franchise tax limitation by federal taxable income) is repealed upon passage of that act, and no limit on bank franchise tax shall be available based on federal taxable income for a corporate taxable year ending on or after the effective date of that act [June 7, 2004].

    § 5837. Repealed. 2003, No. 152 (Adj. Sess.), § 8.

    History

    Former § 5837. Former § 5837, relating to investment and holding companies, was derived from 1989, No. 12 and amended by 1991, No. 67 , § 26d; 2003, No. 70 (Adj. Sess.), § 41; and 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.

    HISTORY: Added 2009, No. 1 (Sp. Sess.), § H.54, eff. Jan. 1, 2010.

    Subchapter 4. Withholding of Taxes at Source

    History

    Amendments

    —1985 (Adj. Sess.). 1985, No. 266 (Adj. Sess.), § 3, eff. June 4, 1986, substituted “at source” for “by employers” in subchapter heading.

    § 5841. Requirement and rate of withholding.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: 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.

    History

    References in text.

    The reference to 8 V.S.A. § 909a (a) , referred to in subsec. (a), is obsolete. 8 V.S.A. § 909a was repealed by 1999, No. 153 (Adj. Sess.), § 27, effective January 1, 2001.

    Amendments

    —2015. Subsec. (c): Added.

    —1991. Subsec. (a): Inserted “with respect to services performed for such person which were” preceding “previously” in the second sentence.

    —1989 (Adj. Sess.). Subsec. (a): Act No. 222 added the last sentence.

    Act No. 210 added the second sentence.

    —1985 (Adj. Sess.). Section amended generally.

    1985 (Adj. Sess.) amendment. 1985, No. 266 (Adj. Sess.), § 9, eff. June 4, 1986, provided that the amendment to this section shall be effective for taxable years beginning on and after January 1, 1986.

    ANNOTATIONS

    Construction with other laws.

    Withholding taxes imposed by this section and § 5842 of this title, and meals and rooms taxes imposed by § 9241 of this title, assessed by the Vermont Department of Taxes against a debtor in bankruptcy are excepted from the discharge within the purview of 11 U.S.C. § 523(a) (1)(A); the fact that the claim of the Department is secured or unsecured is immaterial. In re Safka, 24 B.R. 87, 1982 Bankr. LEXIS 3185 (Bankr. D. Vt. 1982).

    § 5842. Return and payment of withheld taxes.

    1. 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.
    2. 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.
    3. 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.
    4. 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.

    HISTORY: 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.

    History

    Amendments

    —2015 (Adj. Sess.). Subdiv. (a)(1): Amended generally.

    Subsec. (c): Substituted “on or before January 31” for “not later than February 28” in the first sentence.

    —2015. Subdiv. (a)(2): Rewrote the first sentence.

    —2009 (Adj. Sess.). Subsec. (c): Added the present second sentence.

    —2007. Subdiv. (a)(4)(D): Deleted.

    —1999 (Adj. Sess.). Subsec. (a)(1): Substituted “$2,500.00” for “$600.00” following “will not exceed”.

    —1999. Subdiv. (a)(4)(D): Added.

    —1995. Subdiv. (a)(4): Amended generally.

    —1993. Subdiv. (a)(2): Amended generally.

    Subdiv. (a)(4): Rewrote the second sentence and added the third and fourth sentences.

    Subsec. (b): Substituted “February 28” for “January 30” preceding “of each year” in the first sentence.

    —1991 (Adj. Sess.) Subdiv. (a)(4): Inserted “or order” following “authorize” in the second sentence.

    —1989 (Adj. Sess.) Subsec. (a): Act No. 124 substituted “25” for “30” preceding “days following” in subdiv. (1), added a new subdiv. (2), redesignated former subdiv. (2) as subdiv. (3) and in that subdivision substituted “25” for “30” preceding “days following” and “subdivisions” for “subdivision” preceding “(a)(1)”, inserted “and (a)(2)” thereafter, substituted “do” for “does” preceding “not apply” and deleted “or” thereafter, deleted former subdiv. (3) and added subdiv. (4).

    Act No. 222 substituted “the 25th (23rd of February) day” for “25 days” preceding “following” in subdiv. (3).

    Subsec. (c): Added by Act No. 222.

    —1985 (Adj. Sess.) Subsec. (a): Substituted “person” for “employer” wherever it appeared.

    Subsec. (b): Substituted “person” for “employer” in the first, second and third sentences and “payees” for “employees” and “amounts” for “wages” in the third sentence.

    —1983. Subsec. (b): Substituted “30” for “31” following “January” in the first sentence.

    1989 (Adj. Sess.) amendment. 1989, No. 124 (Adj. Sess.), § 4, eff. Feb. 8, 1990, provided that the amendment to subsec. (a) of this section by § 1 of that act shall affect returns due for tax periods ending on and after March 31, 1990.

    1985 (Adj. Sess.) amendment. 1985, No. 266 (Adj. Sess.), § 9, eff. June 4, 1986, provided that the amendment to this section shall be effective for taxable years beginning on and after January 1, 1986.

    ANNOTATIONS

    Construction with other laws.

    Withholding taxes imposed by § 5841 of this title and this section, and meals and rooms taxes imposed by § 9241 of this title, assessed by the Vermont Department of Taxes against a debtor in bankruptcy are excepted from the discharge within the purview of 11 U.S.C. § 523(a) (1)(A); the fact that the claim of the Department is secured or unsecured is immaterial. In re Safka, 24 B.R. 87, 1982 Bankr. LEXIS 3185 (Bankr. D. Vt. 1982).

    § 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.

    HISTORY: 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.

    History

    Amendments

    —2017. Substituted “subsection” for “subdivision” preceding “5842(b)’ in the first sentence and inserted “business” following “later than seven” in the third sentence.

    —1995. Substituted “the commissioner’s requirement under section 5842(a)(4)” for “an order under section 5842(a)(3) or (4)” following “comply with” and “at such intervals and based upon such classification as the commissioner designates” for “in quarter- or eighth-monthly payments” preceding “the commissioner may petition” in the first sentence and “as the commissioner has required” for “in quarter- or eighth-monthly payments” following “amounts” in the second sentence and preceding “for such period” in the sixth sentence.

    —1991 (Adj. Sess.) Inserted “or (4)” following “5842(a)(3)” in the first sentence and substituted “quarter- or eighth-monthly” for “weekly” wherever it appeared in that sentence and the second and sixth sentences.

    —1985 (Adj. Sess.) Deleted “by employers” preceding “to account” in the section heading and substituted “person” for “employer” throughout the text of the section.

    —1973 (Adj. Sess.). Changed “county court” to “superior court”.

    1985 (Adj. Sess.) amendment. 1985, No. 266 (Adj. Sess.), § 9, eff. June 4, 1986, provided that the amendment to this section shall be effective for taxable years beginning on and after January 1, 1986.

    § 5844. Liability; penalty; trust for the State.

    1. 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.
    2. 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.
      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. (c) (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.
    3. 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 regulations issued under that section shall be considered to be a return for the purposes of this chapter.

    HISTORY: 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.

    History

    Revision note

    —2021. In subsec. (d), deleted “, without limitation,” following “including” in accordance with 2013, No. 5 , § 4.

    Amendments

    —2019. Subsecs. (a, (b), and (d): Added the subsec. headings.

    Subdiv. (c)(4): Substituted “Lien” for “Lein” in the subdiv. heading.

    —1997. Subsec. (a): Substituted “corporation or other” for “corporate” preceding “entity”, inserted “or entity” preceding “who as an officer”, and substituted “same” for “corporation” following “agent of the” and “it” for “the same” following “tax and transmit”.

    —1987. Subsec. (c): Amended generally.

    —1985 (Adj. Sess.). Deleted “of employers” preceding “penalty” in the section heading and substituted “person” for “employer” throughout the text of the section and “a person” for “an employer” in the first sentence of subsec. (d).

    —1971. Section amended generally.

    1985 (Adj. Sess.) amendment. 1985, No. 266 (Adj. Sess.), § 9, eff. June 4, 1986, provided that the amendment to this section shall be effective for taxable years beginning on and after January 1, 1986.

    ANNOTATIONS

    Construction.

    Statutory duty for payment of withholding, sales and use, and meals and rooms taxes is imposed personally on corporate officer who, within corporate structure, has duty to collect and remit the taxes; in other words, officer’s corporate duty becomes a statutory duty, and personal liability attaches for nonperformance. Rock v. Department of Taxes, 170 Vt. 1, 742 A.2d 1211, 1999 Vt. LEXIS 247 (1999).

    Department of Taxes did not employ wrong legal standard in holding corporate officer personally liable for corporation’s outstanding withholding, sales and use, and meals and rooms taxes, since Department properly viewed officer’s actual authority and control over corporation’s financial affairs as evidence of his duty to remit taxes to State. Rock v. Department of Taxes, 170 Vt. 1, 742 A.2d 1211, 1999 Vt. LEXIS 247 (1999).

    § 5845. Repealed. 1991, No. 186 (Adj. Sess.), § 8(e), eff. May 7, 1992.

    History

    Former § 5845. Former § 5845, relating to reciprocal agreements with taxing authorities in other jurisdictions, was derived from 1966, No. 61 (Sp. Sess.), § 1, and amended by 1985, No. 266 (Adj. Sess.), § 3. The subject matter is now covered by § 3201 of this title.

    § 5846. Repealed. 1991, No. 186 (Adj. Sess.), § 8(f), eff. May 7, 1992.

    History

    Former § 5846. Former § 5846, relating to bonding requirements, was derived from 1975, No. 154 (Adj. Sess.), § 13, and amended by 1985, No. 266 (Adj. Sess.), § 3 and 1989, No. 225 (Adj. Sess.), § 25(b).

    § 5847. Withholding on sales or exchanges of real estate.

    1. General rule.   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.
    2. Exemptions.   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:
        1. no tax is due on the gain from that transfer; or
        2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.

    HISTORY: 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.

    History

    Revision note

    —2013. In subsec. (e), substituted “As used in” for “For the purposes of” to conform to V.S.A. style.

    —2007. 32 V.S.A. § 5875 , referred to in subsec. (d), was repealed by 1997, No. 156 (Adj. Sess.), § 37, and reference to that section was changed to “this title”.

    Revision note—. In the introductory paragraph of subsec. (c), substituted “subdivision (b)(2)” for “subsection (b)(2)” to conform reference to V.S.A. style.

    Amendments

    —1997. Subsec. (e): Added the seventh sentence.

    Subsec. (h): Added.

    —1995. Subsec. (c): Amended generally.

    —1991. Subdiv. (b)(3): Added.

    —1989 (Adj. Sess.) Subsec. (e): Amended generally.

    CROSS REFERENCES

    Property transfer tax, see chapter 231 of this title.

    Tax on gains from sale or exchange of land, see chapter 236 of this title.

    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:
      1. 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
      2. 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.

    HISTORY: 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.

    History

    Revision note

    —2013. In the introductory language, substituted “As used in ” for “For purposes of ” to conform to V.S.A. style.

    Amendments

    —1989. Section amended generally.

    —1985 (Adj. Sess.). Deleted “from the wages of that taxpayer” following “deducted and withheld”.

    1989 amendment. 1989, No. 119 , § 28(1), eff. June 22, 1989, provided that the amendment to this section by § 3 of that act shall apply to taxes payable for taxable years beginning on and after January 1, 1989.

    1985 (Adj. Sess.) amendment. 1985, No. 266 (Adj. Sess.), § 9, eff. June 4, 1986, provided that the amendment to this section shall be effective for taxable years beginning on and after January 1, 1986.

    § 5852. Payment of estimated income tax.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.

    HISTORY: 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.

    History

    Revision note

    —2013. In subsec. (d) changed references to “husband and wife” to “married couple” in accordance with 2009, No. 3 , § 12a.

    Amendments

    —2015. Subsec. (a): Inserted “estate, and trust” following “individual” in the first sentence.

    —2013. Subsec. (b): Substituted “24 percent” for “applicable percentage” in first sentence; deleted second sentence, “For purposes of this section, ‘applicable percentage’ means the percentage of federal income tax liability specified in section 5822 of this title, as amended from time to time”.

    —1989. Deleted “estimation and” preceding “payment of” and substituted “estimated income” for “non-withheld” thereafter in the section heading, rewrote subsec. (a), substituted “in annualized income installments” for “on an annualized basis” preceding “may pay” in the first sentence of subsec. (b) and added subsecs. (c) through (e).

    —1987 (Adj. Sess.). Section amended generally.

    —1983. Substituted “$125.00” for “$40.00” following “more than” in the first sentence.

    —1967 (Adj. Sess.). Revised time table for payment of non-withheld tax.

    Applicability of 2015 amendment to subsec. (a). 2015, No. 57 , § 99(12) provides: “Sec. 69 (obligation of estates and trusts to make estimated payments) [which amended subsec. (a)] shall take effect on passage [June 11, 2015] and apply to taxable years beginning on and after January 1, 2016.”

    —1989 amendment. 1989, No. 119 , § 28(1), eff. June 22, 1989, provided that the amendment to this section by § 4 of that act shall apply to taxes payable for taxable years beginning on and after January 1, 1989.

    1987 (Adj. Sess.) amendment. 1987, No. 278 (Adj. Sess.), § 16(5), eff. June 21, 1988, provided that the provision of that act amending this section shall apply to estimated taxes payable for taxable years beginning on and after January 1, 1987.

    §§ 5853, 5854. Repealed. 1989, No. 119, § 6, eff. June 22, 1989.

    History

    Former §§ 5853, 5854. Former § 5853, relating to declarations of non-withheld tax, was derived from 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966, and amended by 1967, No. 278 (Adj. Sess.), § 30, eff. March 12, 1968.

    Former § 5854, relating to underestimations of nonwithheld tax, was derived from 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966, and amended by 1967, No. 121 , § 11, eff. Jan 1, 1968.

    1989, No. 119 , § 28(1), eff. June 22, 1989, provided that § 6 of that act, which repealed these sections, shall apply to taxes payable for taxable years beginning on and after January 1, 1989.

    § 5855. Payments as tax liability.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Revision note

    —2021. In subsec. (a), deleted “, without limitation,” following “including” in accordance with 2013, No. 5 , § 4.

    Amendments

    —2001 (Adj. Sess.) Subdiv. (b)(1): Substituted “$500.00” for “$250.00” at the end of the subdiv.

    —1997 (Adj. Sess.). Subdiv. (b)(1): Substituted “$250.00” for “$125.00”.

    —1989. Section amended generally.

    —1985 (Adj. Sess.). Inserted “except, however, that no penalties shall be assessed for failure to pay estimated tax for any taxable year if the sum of the withholding and timely estimated tax payments credited to the taxpayer for that taxable year equal or exceed the taxpayer’s tax liability for the preceding tax year, and” preceding “except as such provisions conflict with the express provisions of this subchapter”.

    —1967. Substituted word “penalty” for “interest”.

    2002 amendment. 2001, No. 140 (Adj. Sess.), § 43(2) provides that § 10 of that act [which amended this section by substituting “500.00” for “250.00” in subdiv. (b)(1)] shall apply to tax years 2003 and after.

    1997 (Adj. Sess.) amendment. 1997, No. 156 (Adj. Sess.), § 59, provides that the amendment to this section by § 6 of that act (increase in safe harbor for underpayment of estimated tax) shall apply to taxable years beginning on and after January 1, 1998.

    1989 amendment. 1989, No. 119 , § 28(1), eff. June 22, 1989, provided that the amendment to this section by § 5 of that act shall apply to taxes payable for taxable years beginning on and after January 1, 1989.

    1985 (Adj. Sess.) amendment. 1985, No. 266 (Adj. Sess.), § 9, eff. June 4, 1986, provided that the amendment to this section shall be effective for taxable years beginning on and after January 1, 1985.

    1967 amendment. 1967, No. 121 , § 14, provided: “This act shall take effect as of January 1, 1968, but shall apply with respect only to taxable years beginning on or after January 1, 1968.”

    Subchapter 5A. Quarterly Filing and Payment

    § 5856. Declaration of estimated tax.

    1. 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.
    2. A corporate taxpayer may amend a declaration, under regulations prescribed by the Commissioner.

    HISTORY: Added 1975, No. 1 (Sp. Sess.), § 15, eff. Jan. 1, 1976; amended 1989, No. 119 , § 8, eff. June 22, 1989.

    History

    Amendments

    —1989. Subsec. (a): Substituted “$500.00” for “$2,500.00” following “more than” in the first sentence.

    § 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.

    HISTORY: Added 1975, No. 1 (Sp. Sess.), § 15, eff. Jan. 1, 1976; amended 1989, No. 119 , § 9, eff. June 22, 1989.

    History

    Revision note—

    “(a)” was deleted from beginning of this section to conform to general V.S.A. style.

    Amendments

    —1989. Substituted “$500.00” for “$2,500.00” preceding “minimum” in the introductory paragraph.

    § 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.

    HISTORY: Added 1975, No. 1 (Sp. Sess.), § 15, eff. Jan. 1, 1976; amended 1997, No. 156 (Adj. Sess.), § 7, eff. April 29, 1998.

    History

    Revision note—

    “(a)” was deleted from beginning of this section to conform to general V.S.A. style.

    Amendments

    —1997 (Adj. Sess.). Subdiv. (6): Added.

    § 5859. Assessment date, penalties, interest.

    1. 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).
    2. Except as provided in subsection (c) of this section, the taxpayer shall be liable for interest 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:
        1. 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
        2. the amount, if any, of the installment paid on or before the last date prescribed for payment.
      2. The period of the underpayment for which interest shall apply shall commence on the date the installment was required to be paid and shall terminate on the earlier of the following dates:
        1. the 15th day of the third month following the close of the taxable year; or
        2. with respect to any portion of the underpayment, the date on which such portion is paid.  For purposes of this subdivision, 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.
    3. 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.
    4. 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.
    5. The application of this subsection to taxable years of less than 12 months shall be in accordance with regulations prescribed by the Commissioner.
    6. The Commissioner may provide by regulation 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.

    HISTORY: 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.

    History

    Revision note

    —2013. In subsec. (d), substituted “As used in” for “For purposes of” to conform to V.S.A. style.

    Amendments

    —2013. Subdiv. (b)(1)(A): Substituted “90 percent” for “80 percent” throughout subdiv.

    Subdiv. (c)(2): Substituted “90 percent” for “80 percent”.

    —1981 (Adj. Sess.). Subsec. (b): Following the word “rate” substituted “per annum established from time to time by the commissioner pursuant to section 3108 of this title” for “of one percent per month”.

    —1979 (Adj. Sess.). Section amended generally.

    Subchapter 6. Returns

    § 5861. Returns by individuals, trusts, and estates.

    1. 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.
    2. 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.
    3. Spouses or a surviving spouse may file a joint Vermont personal income tax return for any taxable year for which the spouses or surviving spouse are permitted to file a joint federal income tax return under the laws of the United States.
    4. 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.
    5. 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.
    6. [Repealed.]
    7. Upon a homeowner’s request, the listers shall certify to him or her the value of the dwelling and up to two acres.

    HISTORY: 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.

    History

    Amendments

    —2007. Subsec. (e): Substituted “§ 11(a)(10)” for “§ 3441” in the first sentence.

    —1999. Subsec. (f): Repealed.

    —1995. Added subsecs. (f) and (g).

    —1993. Subsec. (a): Substituted “person” for “individual, trust or estate” preceding “is required”, inserted “(1)” preceding “earned or received more than $100.00 of Vermont income or” and “or (2) earned or received more than $1,000.00 in gross income from the sources listed in section 5823(b)(1) through (5) of this title whether or not a resident” thereafter.

    Subsec. (b): Inserted “originally” following “tax return is” and added “or the date as extended by the commissioner under section 5868 of this title” at the end of the subsec.

    —1987. Subsec. (a): Added “or has a tax liability under this chapter for that year” following “Vermont income in that year” at the end of the subsec.

    —1981 (Adj. Sess.) Subsec. (e): Added.

    —1967. Subsec. (a): Rephrased to delete (a)(1), (2).

    Subsec. (c): Rephrased to delete filing of separate return, added “surviving spouse”.

    Subsec. (d): Amended generally and added “surviving spouse”.

    1993 amendment. 1993, No. 49 , § 27, provided that the amendment to subsec. (a) of this section by § 13 of that act shall apply to taxable years beginning on and after Jan. 1, 1994.

    1987 amendment. 1987, No. 82 , § 11(1), eff. June 9, 1987, provided that the provisions of that act amending this section shall affect taxable years beginning on and after January 1, 1987.

    CROSS REFERENCES

    Penalties and interest for late filing, see §§ 3202 and 3203 of this title.

    § 5861a. Returns by partnerships.

    1. 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.
    2. The returns and schedules required to be filed under this section shall be treated as a return for all purposes under this chapter.

    HISTORY: 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.

    History

    Amendments

    —1997. Subsec. (a): Deleted “a resident partner, or having” preceding “any income” and “as provided under section 5823 of this title for a nonresident individual” following “Vermont sources” in the first sentence and added the second sentence.

    —1989 (Adj. Sess.). Subsec. (a): Inserted “a Vermont partnership income tax return and” following “commissioner”.

    1989 (Adj. Sess.) amendment. 1989, No. 222 (Adj. Sess.), § 44(1), eff. May 31, 1990, provided that the amendment to subsec. (a) of this section by § 10 of that act shall apply to taxable years beginning on or after January 1, 1990.

    § 5862. Returns by corporations.

    1. 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.
    2. 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.
    3. 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.
    4. A taxable corporation that is part of an affiliated group engaged in a unitary business 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.

    HISTORY: 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.

    History

    Revision note—

    Subsec. designations (a) and (b) were added to conform to V.S.A style.

    Amendments

    —2013 (Adj. Sess.). Subsec. (c): Inserted “elect to” following “group of corporations may”, and added the second sentence.

    —2003 (Adj. Sess.). Subsec. (d): Added.

    —1991. Subsec. (c): Inserted “which received any income allocated or apportioned to this state under the provisions of section 5833 of this title for the taxable year and” following “taxable corporations”.

    —1987. Subsec. (c): Added.

    —1973 (Adj. Sess.). Changed “county court” to “superior court”.

    —1971. Added second paragraph.

    Applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70 provides that §§ 1 (filing requirement) [which amended 32 V.S.A. § 5862d ], 2 (consolidated returns) [which amended this section], and 4 (VEGI) [which amended 32 V.S.A § 5930(c)(9)] shall take effect retroactively to January 1, 2014 and apply for tax year 2014 and after.

    Applicability of subsec. (d). 2003, No. 152 (Adj. Sess.), § 23(1) provides that § 7 of that act [which added subsec. (d) to this code section] shall apply to taxable years beginning on or after January 1, 2006.

    Applicability of 1987 amendment. 1987, No. 82 , § 11(1), eff. June 9, 1987, provided that the provisions of that act amending this section shall affect taxable years beginning on and after January 1, 1987.

    CROSS REFERENCES

    Penalties and interest for late filing, see §§ 3202 and 3203 of this title.

    § 5862a. Nongame Wildlife Account checkoff.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Nothing in this section shall be construed to require the Commissioner to collect any amount designated as a contribution to the Nongame Wildlife Account.

    HISTORY: Added 1985, No. 191 (Adj. Sess.), § 4, eff. May 14, 1986; amended 1987, No. 221 (Adj. Sess.), §§ 1, 2, eff. May 27, 1988.

    History

    Amendments

    —1987 (Adj. Sess.). Subsec. (b): In the first sentence, inserted “or” preceding “overpayments” and made other minor changes in punctuation.

    Subsec. (d): Added.

    Subsec. (e): Added.

    Applicability of enactment.

    1985, No. 191 (Adj. Sess.), § 5, eff. May 14, 1986, provided that this section shall apply to tax returns filed for calendar year 1986 and thereafter.

    1987 (Adj. Sess.) amendments. 1987, No. 221 (Adj. Sess.), § 4, eff. May 21, 1988, provided that the amendments to this section by that act shall affect income taxes beginning on and after January 1, 1988.

    CROSS REFERENCES

    Account and conservation plan for nongame wildlife, see 10 V.S.A. § 4048 .

    § 5862b. Children’s Trust Fund Account checkoff.

    1. 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 Children’s Trust Fund.
    2. 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 Children’s Trust 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.
    3. 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 Children’s Trust Fund and shall provide notice in the instructions for the State individual income tax return that the report is available at the Tax Department.
    4. 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 Children’s Trust Fund 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 account.
    5. Nothing in this section shall be construed to require the Commissioner to collect any amount designated as a contribution to the Children’s Trust Fund Account.

    HISTORY: Added 1995, No. 164 (Adj. Sess.), § 1.

    History

    Applicability of enactment.

    1995, No. 164 (Adj. Sess.), § 3, eff. May 16, 1996, provided that that act, which enacted this section and amended 33 V.S.A. § 3306 , shall affect returns filed for taxable years beginning on and after January 1, 1997.

    § 5862c. Repealed. 2009, No. 160 (Adj. Sess.), § 51(c)(1) repealed effective for taxable years beginning on and after January 1, 2010.

    History

    Former § 5862c. Former § 5862c, relating to Vermont campaign fund add-on, was derived from 1997, No. 64 , § 16.

    § 5862d. Filing of federal form 1099.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: 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.

    History

    Amendments

    —2017. Subsec. (b): Amended generally.

    Subsec. (c): Added.

    —2013 (Adj. Sess.). Added the subsec. (a) designation and added subsec. (b).

    Applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70(1) provides that Secs. 1 (filing requirement) [which amended this section], 2 (consolidated returns) [which amended 32 V.S.A § 5862(c)], and 4 (VEGI) [which amended 32 V.S.A § 5930(c)(9)] shall take effect retroactively to January 1, 2014 and apply for tax year 2014 and after.

    Retroactive effective date and applicability of 2017 amendment. 2017, No. 73 , § 32(10) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. 22 (third party settlement network reporting requirements) shall take effect retroactively on January 1, 2017 and apply to taxable year 2017 and after.”

    § 5862e. Vermont Veterans’ Fund checkoff.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Nothing in this section shall be construed to require the Commissioner to collect any amount designated as a contribution to the Vermont Veterans’ Fund.

    HISTORY: Added 2009, No. 160 (Adj. Sess.), § 49.

    History

    Applicability of 2009 (Adj. Sess.) enactment. 2009, No. 160 (Adj. Sess.), § 62(16) provides that § 49, which enacted this section, relating to the income tax return checkoff for Vermont veterans’ fund, shall apply to income tax returns for taxable year 2010 and after.

    § 5862f. Vermont Green Up checkoff.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Nothing in this section shall be construed to require the Commissioner to collect any amount designated as a contribution to Vermont Green Up, Inc.

    HISTORY: Added 2013, No. 174 (Adj. Sess.), § 3, eff. Jan. 1, 2015.

    History

    Applicability of 2013 (Adj. Sess.) enactment. 2013, No. 174 (Adj. Sess.), § 70(3) provides that § 3 (Vermont Green Up) [which enacted this section] shall take effect on January 1, 2015 and shall apply to returns filed after that date.

    § 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.

    HISTORY: Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.

    § 5864. Failure to file a return; petition and computation of tax.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2017. Subsec. (b): Substituted “sections 3202 and 3203” for “section 5881” preceding “of this title” in the second sentence.

    —1973 (Adj. Sess.). Changed “county court” to “superior court” and “Washington county court” to “Washington superior court”.

    § 5865. Repealed. 1991, No. 186 (Adj. Sess.), § 8(g), eff. May 7, 1992.

    History

    Former § 5865. Former § 5865, relating to examination of records and witnesses, was derived from 1966, No. 61 (Sp. Sess.), § 1. The subject matter is now covered by § 3201 of this title.

    § 5866. Supplemental information; changes in federal tax liability or taxable income.

    1. 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 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.
    2. 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.

    HISTORY: 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.

    History

    Revision note

    —2013. In subsec. (b), deleted “without limitation” following “including” in accordance with 2013, No. 5 , § 4.

    Revision note—. Substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954” in accordance with Pub. L. 99-514. § 2, Oct. 22, 1986, 100 Stat. 2095.

    Amendments

    —2019 (Adj. Sess.). Subsec. (a): Substituted “that” for “which” following “information” in subdiv. (1) and “180 days” for “60 days” in subdiv. (3).

    —2005 (Adj. Sess.). Subdiv. (a)(2): Deleted “or income tax liability” following “taxable income”.

    Subdiv. (a)(3): Substituted “60 days” for “thirty days”.

    ANNOTATIONS

    Limitations period.

    Reconciliation reports, which corrected the amount of bank franchise tax (BFT) owed, were a taxpayer’s notification to the Commissioner of Taxes that its BFT returns were inaccurate due to its subsequent federal taxable income determination. Because the statute governing supplemental information specified that any notice required to be given to the Commissioner was considered to be a return, it was appropriate to treat the reconciliation reports as the “proper return” that began the three-year statute-of-limitations period. TD Banknorth, N.A. v. Dep't of Taxes, 2008 VT 120, 185 Vt. 45, 967 A.2d 1148, 2008 Vt. LEXIS 132 (2008).

    Returns.

    TD Banknorth, N.A. v. Dep't of Taxes, 2008 VT 120, 185 Vt. 45, 967 A.2d 1148, 2008 Vt. LEXIS 132 (2008).

    There was no merit to a taxpayer’s argument that reconciliation reports could not be categorized as “returns” because they were refund requests, did not resemble standard returns, and did not have filing deadlines. The provision governing supplemental information does not restrict the term “return” to any particular category of documents based on their form, content, or the imposition of a filing deadline. TD Banknorth, N.A. v. Dep't of Taxes, 2008 VT 120, 185 Vt. 45, 967 A.2d 1148, 2008 Vt. LEXIS 132 (2008).

    § 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.

    HISTORY: 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.

    HISTORY: 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.

    History

    Amendments

    —2019 (Adj. Sess.). Amended generally.

    —1991. Deleted “for good cause shown” preceding “the commissioner” in the first sentence and rewrote the third sentence.

    —1989 (Adj. Sess.). Added the second sentence.

    —1981 (Adj. Sess.). Substituted the words “per annum established from time to time by the commissioner pursuant to section 3108 of this title” for “of one percent per month”.

    —1979 (Adj. Sess.). Provided an extension of time for filing will result in a corresponding extension of the time for the payment of the tax liability; and increased interest to “one percent on the unpaid tax liability” from “one-half of one percent”.

    § 5869. Repealed. 1997, No. 156 (Adj. Sess.), § 37.

    History

    Former § 5869. Former § 5869, relating to penalties for late filing, was derived from 1966, No. 61 (Sp. Sess.), § 1 and amended by 1979, No. 105 (Adj. Sess.), § 7; 1991, No. 186 (Adj. Sess.), § 15.

    Repeal of section. 1997, No. 156 (Adj. Sess.), § 37, repealed this section; § 59 of that act makes § 37 “effective with respect to interest and penalties assessed for taxable years beginning on and after January 1, 1999. ” See also §§ 3202 and 3203 of this title, relating to interest and penalties, which were added by No. 156 subject to the same effective date provision.

    § 5870. Reporting use tax on individual income tax returns.

    1. 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.
    2. PARASTAT=“s” DESISTAT=“”>PARASTAT=“s” DESISTAT=“”>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.

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    PARASTAT=“s” DESISTAT=“”>If adjusted gross income is: The tax is: PARASTAT=“s” DESISTAT=“”>Not over $20,000.00 $ 0.00 PARASTAT=“s” DESISTAT=“”>$20,001.00 to $30,000.00 $10.00 PARASTAT=“s” DESISTAT=“”>$30,001.00 to $40,000.00 $15.00 PARASTAT=“s” DESISTAT=“”>$40,001.00 to $50,000.00 $20.00 PARASTAT=“s” DESISTAT=“”>$50,001.00 to $60,000.00 $25.00 PARASTAT=“s” DESISTAT=“”>$60,001.00 to $70,000.00 $30.00 PARASTAT=“s” DESISTAT=“”>$70,001.00 to $80,000.00 $35.00 PARASTAT=“s” DESISTAT=“”>$80,001.00 to $90,000.00 $40.00 PARASTAT=“s” DESISTAT=“”>$90,001.00 to $100,000.00 $45.00 PARASTAT=“s” DESISTAT=“”>$100,001.00 and over the lesser of $150.00 or PARASTAT=“s” DESISTAT=“”> 0.05% of adjusted gross income.

    HISTORY: 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.

    History

    Amendments

    —2019 (Adj. Sess.). Subsec. (a): Deleted “as shown on a table published by the Commissioner of Taxes” following “under subsection (b) of this section” and added “shown under subsection (b) of this section.”

    Subsec. (b): Substituted “based on the taxpayer’s adjusted gross income as determined by the following tables” for “0.10 percent of their adjusted gross income” and “$150.00” for “$500.00” in the first paragraph and added the table.

    —2017. Subsec. (a): In the second sentence, deleted “Vermont” preceding “adjusted”, and substituted “determined” for “indexed annually” following “gross income”.

    Subsec. (b): Amended generally.

    —2015. Act No. 57, § 95 substituted “0.15 percent” for “0.10 percent” in the third sentence.

    Act No. 57, § 96 amended section generally.

    —2013 (Adj. Sess.). Substituted “0.10 percent” for “0.08 percent” following “an amount that is”.

    —2009 (Adj. Sess.) Substituted “0.08 percent” for “0.04 percent” in the third sentence.

    Applicability of enactment.

    2003, No. 68 , § 87(7) provides that § 35 of that act which enacts this section, relating to use tax reporting on income tax returns, shall apply to income tax returns for tax years 2003 and after.

    2009, No. 160 (Adj. Sess.), § 62(11) provides that § 37 of that act which amended this section, relating to the income tax instruction booklet, shall apply to taxable years beginning on and after January 1, 2010.

    Applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70(9) provides that § 33 of that act (use tax reporting) [which amended this section] shall take effect on January 1, 2015 and apply to tax year 2014 returns and after.

    Effective date and applicability of 2015 amendment. 2015, No. 57 , § 99(13) provides: “Sec. 95 (use tax reporting) [which amended this section] shall take effect on January 1, 2016, and apply to tax year 2015 returns.”

    Effective date and applicability of second 2015 amendment. 2015, No. 57 , § 99(14) provides: “Sec. 96 (use tax reporting) [which amended this section] shall take effect January 1, 2017, and apply to tax year 2016 returns and after.”

    Retroactive effective date and applicability of 2017 amendment. 2017, No. 73 , § 32(9) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. 20 (use tax reporting) [which amends this section] shall take effect retroactively on January 1, 2017 and apply to returns filed for tax year 2017 and after.”

    Retroactive effective date and applicability of 2019 (Adj. Sess.) amendments. 2019, No. 175 (Adj. Sess.), § 31(1) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. 8, 32 V.S.A. § 5870 (use tax reporting), shall take effect retroactively on January 1, 2020 and apply to taxable years beginning on and after January 1, 2020.”

    Increasing use tax compliance. 2017, No. 73 , § 21 provides: “ 32 V.S.A. § 5870 provides that the Commissioner of Taxes ‘shall provide that individuals report use tax on their State individual income tax returns.’ In an effort to increase the level of use tax compliance, the Department of Taxes shall conduct an outreach and education campaign designed to highlight the use tax liability for taxpayers on their income tax forms, and to increase ease of compliance. These efforts shall be in addition to any current compliance and enforcement efforts.”

    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.

    HISTORY: Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.

    CROSS REFERENCES

    Penalty and interest for delinquent payment, see §§ 3202 and 3203 of this title.

    § 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.

    HISTORY: 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.

    History

    Amendments

    —1989. Substituted “$500.00” for “$2,500.00” following “excess of” in the first sentence and deleted the former second and third sentences.

    —1979 (Adj. Sess.). Section amended generally.

    —1975 (Sp. Sess.). Changed provisions providing for payment and added reference to subchapter 5A of this chapter.

    —1971. Added provisions relating to minimum amount due and payment of amounts below minimum.

    1989 amendment. 1989, No. 119 , § 28(1), eff. June 22, 1989, provided that the amendment to this section by § 7 of that act shall apply to taxes payable for taxable years beginning on and after January 1, 1989.

    CROSS REFERENCES

    Penalty and interest for delinquent payment, see §§ 3202 and 3203 of this title.

    § 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.

    HISTORY: Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1979, No. 105 (Adj. Sess.), § 9; 1981, No. 191 (Adj. Sess.), § 7.

    History

    Amendments

    —1981 (Adj. Sess.). Following the words “computed at the rate” substituted “per annum established from time to time by the commissioner pursuant to section 3108 of this title” for “of one percent per month”.

    —1979 (Adj. Sess.). Substituted the words “interest computed at the rate of one percent per month on the unpaid amount of” for “an amount of interest computed at the rate of one-half of one percent per month on”.

    § 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.

    HISTORY: Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 2021, No. 73 , § 5.

    History

    Amendments

    —2021. Section amended generally.

    § 5875. Repealed. 1997, No. 156 (Adj. Sess.), § 37.

    History

    Former § 5875. Former § 5875, relating to penalties and interest for delinquent payment, was derived from 1966, No. 61 (Sp. Sess.), § 1 and amended by 1979, No. 105 (Adj. Sess.), § 10; 1983, No. 59 , § 3; 1991, No. 67 , § 6.

    Repeal of section. 1997, No. 156 (Adj. Sess.), § 37, repealed this section; § 59 of that act makes § 37 “effective with respect to interest and penalties assessed for taxable years beginning on and after January 1, 1999.” See also §§ 3202 and 3203 of this title, relating to interest and penalties, which were added by No. 156 subject to the same effective date provision.

    Annotations from Former § 5875.

    Discretion.

    Tax Commissioner did not abuse his discretionary authority to assess penalties for failure to pay State income taxes on time, even though the penalty was imposed automatically after the delinquency was discovered; any penalty is subject to individual review upon appeal to the Commissioner. Piche v. Department of Taxes, 152 Vt. 229, 565 A.2d 1283, 1989 Vt. LEXIS 151 (1989).

    Subchapter 8. Deficiencies, Assessments, Refunds, and Appeals

    ANNOTATIONS

    Cited.

    Cited in In re Thayer, 47 B.R. 90, 1985 Bankr. LEXIS 6757 (Bankr. D. Vt. 1985).

    § 5881. Repealed. 1997, No. 156 (Adj. Sess.), § 37.

    History

    Former § 5881. Former § 5881, relating to notice of deficiencies; assessment of penalties and interest, was derived from 1966, No. 61 (Sp. Sess.), § 1 and amended by 1971, No. 73 , § 20; 1979, No. 105 (Adj. Sess.), § 11.

    Repeal of section. 1997, No. 156 (Adj. Sess.), § 37, repealed this section; § 59 of that act makes § 37 “effective with respect to interest and penalties assessed for taxable years beginning on and after January 1, 1999.” See also §§ 3202 and 3203 of this title, relating to interest and penalties, which were added by No. 156 subject to the same effective date provision.

    § 5882. Time limitation on notices of deficiency and assessment of penalty and interest.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2007 (Adj. Sess.). Substituted “3202” for “5881” in subsec. (a), “3203” for “5881” in subdiv. (b)(3) and added subdiv. (b)(6).

    —1989. Subdiv. (b)(5): Added.

    1989. 1989, No. 119 , § 28(3), eff. June 22, 1989, provided that the amendment to this section by § 13 of that act shall apply with respect to returns filed on and after June 22, 1989.

    ANNOTATIONS

    Limitations period.

    Three-year limitation period governing notice of an income tax deficiency presupposes a return was filed that was found deficient. Thus, because defendants did not file returns, the limitations period did not apply. State v. Montani, 2018 VT 21, 207 Vt. 1, 184 A.3d 723, 2018 Vt. LEXIS 19 (2018).

    Reconciliation reports, which corrected the amount of bank franchise tax (BFT) owed, were a taxpayer’s notification to the Commissioner of Taxes that its BFT returns were inaccurate due to its subsequent federal taxable income determination. Because the statute governing supplemental information specified that any notice required to be given to the Commissioner was to considered to be a return, it was appropriate to treat the reconciliation reports as the “proper return” that began the three-year statute-of-limitations period. TD Banknorth, N.A. v. Dep't of Taxes, 2008 VT 120, 185 Vt. 45, 967 A.2d 1148, 2008 Vt. LEXIS 132 (2008).

    Reading the whole provision governing time limitations on notices of deficiency makes clear that it creates an exception for cases where a taxpayer files a subsequent return that alters his or her tax liability, ensuring that the three-year enforcement period will run from the date when the taxpayer files the “proper” documentation, rather than three years from the original filing date. TD Banknorth, N.A. v. Dep't of Taxes, 2008 VT 120, 185 Vt. 45, 967 A.2d 1148, 2008 Vt. LEXIS 132 (2008).

    Timeliness of assessment.

    “Proper” return was not filed until a taxpayer’s reconciliation reports were completed and filed in 2002 and 2003. These reports contained the final calculation of the taxpayer’s federal taxable income, and thus allowed for the correct computation of the taxpayer’s 2000 and 2001 bank franchise tax liability; the Department of Taxes’ 2004 assessment was therefore timely. TD Banknorth, N.A. v. Dep't of Taxes, 2008 VT 120, 185 Vt. 45, 967 A.2d 1148, 2008 Vt. LEXIS 132 (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.

    HISTORY: 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.

    History

    Amendments

    —2013. Substituted “or assessment” for “penalty, or interest” in the section heading; substituted “refund, or assessment” for “penalty or interest” at end of second sentence.

    —2007 (Adj. Sess.). Inserted “refund” in the section heading, substituted “of denial or reduction of a refund claim, or of assessment of penalty or interest under section 3203” for “or assessment of penalty or interest under section 5881” and inserted “refund, or” following “deficiency”.

    —1989 (Adj. Sess.). Substituted “60” for “thirty” in the first sentence.

    —1979 (Adj. Sess.). In the first sentence inserted the words “of mailing” between the words “after the date” and “of the notice”.

    —1975 (Adj. Sess.). Substituted “thirty” for “twenty” days in the first sentence.

    1975, No. 154 (Adj. Sess.), § 16, provided, in part, that § 1 of that act, which amended this section, “shall be effective with respect to assessments made and returns filed after June 30, 1976”.

    ANNOTATIONS

    Assessment of penalty.

    Provision governing taxpayers’ right to a hearing after receipt of a notice of deficiency or of an assessment of penalty or interest did not restrict the Commissioner of Taxes from altering a penalty assessed by the Department of Taxes during an appeal hearing. TD Banknorth, N.A. v. Dep't of Taxes, 2008 VT 120, 185 Vt. 45, 967 A.2d 1148, 2008 Vt. LEXIS 132 (2008).

    Cited.

    Cited in Winterset, Inc. v. Commissioner of Taxes, 144 Vt. 230, 475 A.2d 231, 1984 Vt. LEXIS 431 (1984); Piche v. Department of Taxes, 152 Vt. 229, 565 A.2d 1283, 1989 Vt. LEXIS 151 (1989).

    § 5884. Refunds; petitions for refunds.

    1. 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.
    2. 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.
    3. 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.
    4. 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.

    HISTORY: 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.

    History

    Amendments

    —2019 (Adj. Sess.). Subsec. (a): Inserted “six months from the date a tax liability is paid or offset” preceding “or six months” and deleted “with respect to the return” at the end of the first sentence.

    —2011. Subsec. (d): Added.

    —2003. Amended generally.

    —1983. Subsec. (b): Deleted “of 12 percent” preceding “per annum” and inserted “established from time to time by the commissioner pursuant to section 3108 of this title” thereafter in the first sentence, and substituted “the return was filed” for “of the excess payment” following “date” and inserted “including any extensions of time thereto” following “return was due” in the second sentence.

    —1971. Changed formula for determining date for computation of interest.

    Retroactive effective date of 2019, No. 175 (Adj. Sess.), § 16. 2019, No. 175 (Adj. Sess.), § 31(4) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. 16 (TY 2016 refunds) shall take effect retroactively on April 15, 2020.”

    Applicability of 2003 amendment. 2003, No. 68 , § 87(24) provides that § 81 of that act, which amends this section, relating to interest on overpayments, shall apply to amended and late returns filed on or after the date of passage.

    Petitions for TY 2016 refunds; COVID-19 public health emergency. 2019, No. 175 (Adj. Sess.), § 16 provides: “Notwithstanding 32 V.S.A. § 5884(a) , after April 15, 2020 and on or before July 15, 2020, the Commissioner of Taxes shall accept a taxpayer’s petition for refund with respect to income tax returns filed for the taxable year 2016. If the Commissioner determines that the taxpayer has paid an amount of income tax under 32 V.S.A. chapter 151 that, as of the date of the determination, exceeds the amount of tax liability owing from the taxpayer to the State, the Commissioner shall forthwith refund the excess amount to the taxpayer together with interest pursuant to 32 V.S.A. § 5884(b) .”

    1983, No. 59 , § 13, eff. April 22, 1983, provided in pertinent part: “This act shall take effect from passage . . . [and] shall affect any unpaid tax liability or overpayment on January 1, 1983 and thereafter.”

    ANNOTATIONS

    Exhaustion of administrative remedies.

    § 5887 of this title requires that a taxpayer petition for a refund from the Commissioner of Taxes pursuant to this section before going to Superior Court, and the failure of the taxpayer to exhaust this administrative remedy deprives the Superior Court of jurisdiction. Stone v. Errecart, 165 Vt. 1, 675 A.2d 1322, 1996 Vt. LEXIS 30 (1996).

    The State must provide a clear and certain remedy for an erroneous or unlawful tax collection to ensure that the opportunity to contest the tax is meaningful, but due process does not prevent a state from requiring exhaustion of administrative remedies before judicial intervention into a state tax matter. The remedy afforded by § 5887 of this title, which requires that a taxpayer petition for a refund from the Commissioner of Taxes pursuant to this section before going to Superior Court, is clear and certain and, therefore, constitutional. Stone v. Errecart, 165 Vt. 1, 675 A.2d 1322, 1996 Vt. LEXIS 30 (1996).

    Interest.

    Statute governing tax refunds provides that with respect to a refund claimed on an amended return, the interest is computed from 45 days after the date the amended return is filed; the statute’s effective date makes the relevant subsection applicable to interest on refunds granted on amended returns filed after June 18, 2003. Thus, the plain meaning of the statutory language is that the interest starts to run 45 days after the filing of the amended return on which the refund is based. Vt. Yankee Nuclear Power Corp. v. Dep't of Taxes, 2010 VT 24, 187 Vt. 431, 996 A.2d 186, 2010 Vt. LEXIS 24 (2010).

    In amending in 2003 the statute governing tax refunds, the Legislature shifted from generally compensating taxpayers for the time-value of money, regardless of when a refund claim was made, to compensating taxpayers only for the time-value of money when the Commissioner of Taxes delays in processing that refund claim. This shift evidences an intent to allow interest to accrue only from the point in time when the Commissioner could act on a refund claim. Vt. Yankee Nuclear Power Corp. v. Dep't of Taxes, 2010 VT 24, 187 Vt. 431, 996 A.2d 186, 2010 Vt. LEXIS 24 (2010).

    Because there was no agreement to hold open a 1994 refund claim or to provide interest under the law in effect in 1994, the taxpayer’s refund claim was based on its 2005 amended return and not on its 1994 request for a refund. Even if the taxpayer could claim 11 years of retroactive interest consistent with the amended version of the refund statute, the Commissioner of Taxes’ findings of fact prevented that claim; thus, since the refund paid in 2005 could have been paid only with respect to the amended return filed in 2005, the Department of Taxes correctly calculated the interest due thereon. Vt. Yankee Nuclear Power Corp. v. Dep't of Taxes, 2010 VT 24, 187 Vt. 431, 996 A.2d 186, 2010 Vt. LEXIS 24 (2010).

    Department of Taxes was not equitably estopped from not paying the retroactive interest claimed by a taxpayer. The taxpayer’s right to a refund based upon changes in its federal taxable income was not extinguished, whether or not there was an agreement to hold open a 1994 refund claim; furthermore, the taxpayer had not shown that the Department treated it unfairly, as any alleged injustice was due to a legislative change in the availability of interest under the governing statute, not from the Department’s actions in handling its 1994 refund claim. Vt. Yankee Nuclear Power Corp. v. Dep't of Taxes, 2010 VT 24, 187 Vt. 431, 996 A.2d 186, 2010 Vt. LEXIS 24 (2010).

    Right to refund.

    Where taxpayers made timely refund requests in each of the years in question, they were entitled on remand to meaningful retroactive relief because subsec. (b) provides that the Commissioner shall forthwith refund to the taxpayer any amount that exceeds the amount of tax liability owing from the taxpayer to the State, if the refund request is made within three years. Hirsch v. Department of Taxes, 164 Vt. 321, 675 A.2d 1318, 1995 Vt. LEXIS 121 (1995).

    § 5885. Procedure for hearings by Commissioner; appeals.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —1997. Subsec. (b): Substituted “after” for “appeal” following “thirty days”, inserted “appeal that determination” following “to refund”, and made minor changes in punctuation.

    —1979 (Adj. Sess.). Subsec. (b): Substituted the phrase, “Any aggrieved taxpayer may within thirty days” for the words “A taxpayer may”.

    —1973 (Adj. Sess.). References to “county court” changed to “superior court” and “Washington county court” to “Washington superior court.”

    —1971 (Adj. Sess.). Subsec. (a): Made hearing subject to 3 V.S.A. chapter 25.

    Subsec. (b): Rephrased and deleted reference to 12 V.S.A.§ 2381-2390.

    ANNOTATIONS

    De novo review.

    Where this section and § 5887 of this title mandated review of administrative proceeding on the agency record as the exclusive appeal remedy, there was no room for judicial discretion to allow a de novo review. State Dept. of Taxes v. Tri-State Industrial Laundries, 138 Vt. 292, 415 A.2d 216, 1980 Vt. LEXIS 1213 (1980).

    Where other statutes specifically granted de novo review of certain administrative proceedings, and this section did not specifically require de novo review, providing merely that “a taxpayer may appeal a determination . . . to the . . . court,” Supreme Court would presume no de novo appeal was intended. State Dept. of Taxes v. Tri-State Industrial Laundries, 138 Vt. 292, 415 A.2d 216, 1980 Vt. LEXIS 1213 (1980).

    Where there was no substantive law right to de novo review or trial by jury on appeal to Superior Court from administrative tax decision, such right could not be created by rule providing that “any question as to which there is a right to trial by jury shall be tried to a jury if one is demanded in accordance with [rule]. Otherwise, all questions as to which by law review is available shall be tried to the court.” State Dept. of Taxes v. Tri-State Industrial Laundries, 138 Vt. 292, 415 A.2d 216, 1980 Vt. LEXIS 1213 (1980).

    Vermont Constitution’s provision “That when any issue in fact, proper for the cognizance of a jury is joined in a court of law, the parties have a right to trial by jury, which ought to be held sacred” did not entitle taxpayer appealing from administrative proceeding to Superior Court to a de novo trial by jury, because (1) such provision does not extend the right of trial by jury, but merely secures it to the extent it existed at common law at the time of the Constitution’s adoption, and the provision does not apply to an appeal from a determination of the Commissioner of Taxes as such an action was unknown at common law, and (2) since the Superior Court is limited in instant case to review on the record established before the administrative agency, there is no “issue in fact . . . joined in a court” of law within the meaning of the constitutional provision. State Dept. of Taxes v. Tri-State Industrial Laundries, 138 Vt. 292, 415 A.2d 216, 1980 Vt. LEXIS 1213 (1980).

    Exhaustion of remedies.

    Where this section provided line of review in tax assessment questions, made it the exclusive remedy, and allowed appeal to Superior Court from decision of the Commissioner of Taxes, appeal to Superior Court from State Tax Department ruling was properly dismissed for failure to exhaust administrative remedies. Riley v. State, 133 Vt. 116, 329 A.2d 631, 1974 Vt. LEXIS 297 (1974).

    Cited.

    Cited in In re Sawyer Estate, 149 Vt. 541, 546 A.2d 784, 1987 Vt. LEXIS 626 (1987); Piche v. Department of Taxes, 152 Vt. 229, 565 A.2d 1283, 1989 Vt. LEXIS 151 (1989).

    § 5886. Payment and collection of deficiencies and assessments; jeopardy notices.

    1. 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 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; and
      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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2017. Substituted “sections 3202 and 3203” for “section 5881” preceding “of this title” in subsecs. (a) and (b), and made minor changes in punctuation.

    —1995. Subsec. (a): Substituted “30” for “60” preceding “days” in the first sentence of the introductory paragraph and deleted “within thirty days of the notification of deficiency or the assessment under section 5881 of this title” preceding “the taxpayer files” in subdiv. (1).

    —1979 (Adj. Sess.) Subsec. (a): Substituted “thirty” for “twenty” days.

    Subdiv. (1): Substituted “thirty” for “twenty” days.

    —1971 (Adj. Sess.) Subdiv. (a)(2): Deleted reference to 12 V.S.A. § 2382 .

    ANNOTATIONS

    Cited.

    Cited in Department of Taxes v. Murphy, 2005 VT 84, 178 Vt. 269, 883 A.2d 779, 2005 Vt. LEXIS 171 (2005).

    § 5887. Remedy exclusive; determination final.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 2011, No. 45 , § 36f, eff. May 24, 2011; 2017, No. 74 , § 139.

    History

    Amendments

    —2017. Subsec. (a): Substituted “sections 3202 and 3203” for “section 5881” preceding “of this title” in the second sentence.

    Subsec. (b): Substituted “sections 3202 and 3203” for “section 5881” preceding “of this title” in the first sentence, and deleted “, without limitation,” following “proceeding including” in the second sentence.

    —2011. Subsec. (c): Added.

    ANNOTATIONS

    De novo review.

    Where this section and § 5885 of this title mandated review of administrative proceeding on the agency record as the exclusive appeal remedy, there was no room for judicial discretion to allow a de novo review. State Dept. of Taxes v. Tri-State Industrial Laundries, 138 Vt. 292, 415 A.2d 216, 1980 Vt. LEXIS 1213 (1980).

    Exhaustion of administrative remedies.

    This section requires that a taxpayer petition for a refund from the Commissioner of Taxes pursuant to 32 V.S.A. § 5884 before going to Superior Court, and the failure of the taxpayer to exhaust this administrative remedy deprives the Superior Court of jurisdiction. Stone v. Errecart, 165 Vt. 1, 675 A.2d 1322, 1996 Vt. LEXIS 30 (1996).

    The State must provide a clear and certain remedy for an erroneous or unlawful tax collection to ensure that the opportunity to contest the tax is meaningful, but due process does not prevent a state from requiring exhaustion of administrative remedies before judicial intervention into a state tax matter. The remedy afforded by this section is clear and certain and, therefore, constitutional. Stone v. Errecart, 165 Vt. 1, 675 A.2d 1322, 1996 Vt. LEXIS 30 (1996).

    Failure to pursue remedy.

    Law provided an exclusive method for challenges to income tax assessments, whether on statute-of-limitations grounds or otherwise, and that method was not pursued by defendants. Therefore, by law, the underlying deficiency judgments on which the collection actions were based became final and uncontestable. State v. Montani, 2018 VT 21, 207 Vt. 1, 184 A.3d 723, 2018 Vt. LEXIS 19 (2018).

    § 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:
      1. 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;
      2. a closing agreement under Section 7121 of the Internal Revenue Code of 1986; or
      3. an agreement executed under Section 1313(a)(4) of the Internal Revenue Code of 1986.
    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 his or her 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:
      1. 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.
      2. 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.

    HISTORY: 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.

    History

    Revision note

    —2013. In subdiv. (1), substituted “As used in” for “For purposes of” to conform to V.S.A. style.

    —2006. In subdiv. (4)(B), substituted “0” for “5,000.00” to reflect the termination of 1993, No. 18 , § 13 as provided for in 1993, No. 18 . § 27.

    Revision note—. In subdivs. (1)(B) and (C) substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954” in accordance with Pub. L. 99-514, § 2, Oct. 22, 1986, 100 Stat. 2095.

    Amendments

    —2005 (Adj. Sess.). Subdiv. (4)(B): Amended generally.

    —1993. Subdiv. (4)(B): Substituted “$5,000.00” for “zero, ($0)” in the first sentence.

    —1991. Subdiv. (4)(B): Substituted “zero ($0)” for “$10,000.00“ following “exceed” in the first sentence.

    —1985 (Adj. Sess.). Subdiv. (4)(B): Added “provided, however, that the amount of any refund due to a net operating loss carryback shall not exceed $ 10,000.00 for any taxable year” following “Vermont tax” in the first sentence.

    —1983 (Adj. Sess.). Subdiv. (4): Added.

    —1971. Subdiv. (2): Substituted word “such” aggregate amount for “that” aggregate amount.

    1983 (Adj. Sess.) amendment. 1983, No. 206 (Adj. Sess.), § 3(b), eff. April 26, 1984, provided in part: “Section 214 of Title 1 shall not apply to this act. . . . Notwithstanding any other provision of law to the contrary, section 2 of this act shall apply retroactively in all particulars.”

    1985 (Adj. Sess.) amendment. 1985, No. 262 (Adj. Sess.), § 10, eff. June 4, 1986, provided that the amendment to this section shall affect income taxes payable for taxable years beginning on and after January 1, 1986.

    1991 amendment. 1991, No. 32 , § 34, provided that the amendment to subdiv. (4)(B) of this section by § 33 of that act shall apply to loss years ending on and after April 30, 1991.

    1993 amendment. 1993, No. 89 , § 27(c)(1), provided that § 13 of that act, which amended subdiv. (4)(B) of this section, shall be effective for loss years beginning January 1, 1993 through December 31, 1994 and shall terminate with respect to taxable years beginning January 1, 1995 and thereafter.

    ANNOTATIONS

    Dividend income.

    For purposes of Vermont income tax, a corporation’s dividend income is reported as part of the Vermont net income from the federal tax return of a corporate taxpayer. F. W. Woolworth Co. v. Commissioner of Taxes, 133 Vt. 93, 328 A.2d 402, 1974 Vt. LEXIS 293 (1974).

    “Gross-up.”.

    The Vermont net income figure on corporate returns is taken from the federal income tax return at a point when the “gross-up” has been added to that figure but before the credit has been taken and thus Vermont takes the income figure from the federal return at a point when for purposes of the federal return the taxpayer is in the middle of this accounting procedure. F.W. Woolworth Co. v. Commissioner of Taxes, 130 Vt. 544, 298 A.2d 839, 1972 Vt. LEXIS 314 (1972).

    Where corporate taxpayer’s taxable income was determined by the United States under the federal laws to include “gross-up,” it was binding on the taxpayer and Vermont in calculating the taxpayer’s income tax liability to the State. F.W. Woolworth Co. v. Commissioner of Taxes, 130 Vt. 544, 298 A.2d 839, 1972 Vt. LEXIS 314 (1972).

    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.

    HISTORY: Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.

    § 5892. Action to collect taxes; limitations.

    1. 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.
    2. 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.

    HISTORY: Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 2009, No. 1 (Sp. Sess.), § H.27, eff. June 2, 2009.

    History

    Amendments

    —2009. Added subsec. (a) designation; substituted “County” for “county” at the end of subsec. (a); and added subsec. (b).

    ANNOTATIONS

    Limitations.

    Because it was undisputed that the Department of Taxes brought its collection cases within six years of the notices of audit assessments provided to defendants, the actions were timely. State v. Montani, 2018 VT 21, 207 Vt. 1, 184 A.3d 723, 2018 Vt. LEXIS 19 (2018).

    By taxpayers’ invoking appeal rights, an assessment on land gains tax was not collectible until the final judgment of the appellate court; the statute of limitations began to run on the date of the final judgment on appeal, and, because the Department of Taxes commenced its action well within the statutory six-year time period, the trial court correctly found that the statute of limitations did not bar the Department’s claim against taxpayers. Department of Taxes v. Murphy, 2005 VT 84, 178 Vt. 269, 883 A.2d 779, 2005 Vt. LEXIS 171 (2005).

    § 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.

    HISTORY: Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966.

    § 5894. Liability for failure or delinquency.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.

    HISTORY: Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1987, No. 48 , § 9; 2013, No. 76 , § 7; 2019, No. 40 , § 12.

    History

    Amendments

    —2019. Subsec. (f): Added the subsec. heading and inserted “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 VSA chapter 84” in the first sentence. su

    —2013. Subsec. (f): Added.

    —1987. Section amended generally.

    ANNOTATIONS

    Attorney misconduct.

    In an attorney discipline case, a public reprimand was the appropriate sanction where an attorney failed to timely file tax returns for several years; even though a sanction could have been imposed due to a violation of tax laws and a violation of the Rules of Professional Misconduct, the weight of the mitigating factors concerning attorney’s health and computer problems warranted the reprimand. In re Obregon, 2016 VT 32, 201 Vt. 463, 145 A.3d 226, 2016 Vt. LEXIS 30 (2016).

    Cited.

    Cited in State v. Doyen, 165 Vt. 43, 676 A.2d 345, 1996 Vt. LEXIS 24 (1996); Town of Hinesburg v. Dunkling, 167 Vt. 514, 711 A.2d 1163, 1998 Vt. LEXIS 168 (1998).

    § 5895. Tax liability as property lien.

      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. (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.
    1. 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.
    2. 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. §§ 4931 through 4954 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.

    HISTORY: 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.

    History

    References in text.

    In subsec. (c), in the reference to 12 V.S.A. §§ 4931 through 4954, § 4933 was repealed pursuant to 2019, No. 20 , § 105.

    Amendments

    —2019. Subdiv. (a)(2): Act No. 38 added the last sentence.

    Subsec. (c): Act No. 14 substituted “ 12 V.S.A. §§ 4931 through 4954” for “ 12 V.S.A. §§ 4523 through 4530”.

    —2017. Subsec. (a): Added the subdivision designations; in subdiv. (1), substituted “sections 3202 and 3203” for “section 5881” preceding “of this title”; and in subdiv. (4), substituted “established pursuant to this section” for both “herein provided” and “herein provided for”.

    —1989. Subsec. (a): Added the fourth sentence.

    —1971 (Adj. Sess.). Subsec. (c): Substituted “4523” for “4521”, provided for foreclosure pursuant to rules, substituted reference to Title 9A for reference to Title 9 and substituted “disposition of collateral under a security interest” for “foreclosure of chattel mortgages”.

    CROSS REFERENCES

    Foreclosure of mortgages and judgment liens, see V.R.C.P. 80.1.

    ANNOTATIONS

    Cited.

    Cited in In re Safka, 25 B.R. 711, 1982 Bankr. LEXIS 5181 (Bankr. D. Vt. 1982); West v. Village of Morrisville, 563 F. Supp. 1101, 1983 U.S. Dist. LEXIS 17357 (D. Vt. 1983).

    Notes to Opinions

    Recording.

    Town clerks should keep a separate book for recording liens, record a brief statement of the substance of the lien, index the record book alphabetically by the property owner’s lien, and file the notice of the lien chronologically in a separate lien file. Tax liens that affect title to real property should be noted in the grantor-grantee index. 1974 Vt. Op. Att'y Gen. 214.

    Subchapter 10. Confidential Preparation of Returns

    § 5901. Consent to use or disclosure of information.

    1. 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.
    2. 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.

    HISTORY: Added 1971, No. 251 (Adj. Sess.), § 2, eff. July 1, 1972; amended 1985, No. 266 (Adj. Sess.), § 6, eff. June 4, 1986.

    History

    Revision note—

    Section was enacted as “§ 6001” but was renumbered as “§ 5901” to conform to V.S.A classification and style.

    Amendments

    —1985 (Adj. Sess.). Subsec. (a): Substituted “other than a” for “and any” preceding “declaration of estimated tax” and inserted “the statements therein are true, correct and complete, based on all information of which the preparer has any knowledge, and that” preceding “either” in the introductory clause.

    1985 (Adj. Sess.) amendment. 1985, No. 266 (Adj. Sess.), § 9, eff. June 4, 1986, provided that the amendment to this section shall be effective for taxable years beginning on and after January 1, 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.

    HISTORY: Added 1971, No. 251 (Adj. Sess.), § 2, eff. July 1, 1972.

    History

    Revision note—

    Section was enacted as “§ 6002” but was renumbered as “§ 5902” to conform to V.S.A classification and style.

    § 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.

    HISTORY: Added 1971, No. 251 (Adj. Sess.), § 2, eff. July 1, 1972; amended 2003, No. 70 (Adj. Sess.), § 42, eff. March 1, 2004.

    History

    Revision note—

    Section was enacted as “§ 6003” but was renumbered as “§ 5903” to conform to V.S.A classification and style.

    Amendments

    —2003 (Adj. Sess.). Inserted “of this title” following “Section 5902” in the introductory paragraph and in subdiv. (1), substituted “subdivision 3102(d)(4)” for “section 5865” and “title” for “chapter”.

    Subchapter 10A. Taxation of S Corporations

    § 5910. Definitions; federal conformity.

    1. In this subchapter, the following terms shall mean:
      1. “C corporation”: a corporation that is not an S corporation.
      2. “Code”: 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”: 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”: all items of income, loss, deduction, or credit of the S corporation other than income attributable to Vermont.
      5. “Pro rata share”: 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”: a corporation for which a valid election under subsection 1362(a) of the Code is in effect.
      7. “Taxable period”: any taxable year or portion of a taxable year during which a corporation is an S corporation.
    2. 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.

    HISTORY: Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996.

    History

    References in text.

    The Internal Revenue Code of 1986, referred to in subdiv. (a)(2), is codified as Title 26 of the United States Code.

    §§ 1377 and 1362 of the Code, referred to in subdivs. (5) and (6), are references to the Internal Revenue Code and are codified as 26 U.S.C. § 1377 and 26 U.S.C. § 1362, respectively.

    Applicability of enactment.

    1995, No. 169 (Adj. Sess.), § 27, eff. May 15, 1996, provided in part that § 21 of that act, which added this subchapter, would apply to tax years beginning on or after Jan. 1, 1997, but before Jan. 1, 2000.

    1999, No. 49 , § 68, eff. June 2, 1999, provided: “Notwithstanding Sec. 27 of No. 169 of the Acts of 1995 (Adj. Sess.) [set out in the note above], Secs. 21 through 24 of that act (relating to the taxation of S corporations and to the taxation of partnerships and limited liability companies) shall also apply to tax years beginning on and after January 1, 2000. Sections 5915 and 5921 of Title 32 shall continue in effect as amended in Acts 71 and 156 of the Acts of 1998.”

    § 5911. Taxation of an S corporation and its shareholders.

    1. 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.
    2. 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 Section 1366 of the Code.

    HISTORY: Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996.

    History

    References in text.

    The Internal Revenue Code, referred to in subsec. (a), is codified as Title 26 of the United States Code.

    Section 1366 of the code, referred to in subsec. (b) is a reference to the Internal Revenue Code and is codified as 26 U.S.C. § 1366.

    Applicability of enactment.

    See note set out under § 5910 of this title.

    § 5912. Repealed. 2015, No. 134 (Adj. Sess.), § 13, eff. May 25, 2016.

    History

    Former § 5912. Former § 5912, relating to characterization of income, was derived from 1995, No. 169 (Adj. Sess.), § 21.

    § 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.

    HISTORY: Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996.

    History

    Applicability of enactment.

    See note set out under section 5910 of this title.

    § 5914. Returns and mandatory payments.

    1. 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 subsection 6072(b) of the Internal Revenue Code. 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.
    2. 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 middle marginal rate on behalf of all of its nonresident shareholders.
    3. 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.
    4. 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.
    5. 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.

    HISTORY: 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.

    History

    Amendments

    —2017. Subsec. (a): Substituted “S corporation returns under subsection 6072(b) of the Internal Revenue Code” for “C corporation returns under section 5862” at the end of the first sentence.

    —2011. Subsec. (b): Added the second sentence.

    —2005 (Adj. Sess.). Subsec. (c): Substituted “next-to-lowest marginal tax rate” for “highest marginal tax rate” in the last sentence.

    —2005. Subsec. (c): Deleted “federal” preceding “marginal tax” and “in effect for individuals multiplied by the rate” following “rate”.

    —1999 (Adj. Sess.). Subsec. (c): Added the proviso at the end of the second sentence.

    Applicability of enactment.

    See note set out under § 5910 of this title.

    Applicability of 2005 (Adj. Sess.) amendment. 2005, No. 207 (Adj. Sess.), § 26(1) provides that § 1 of that act [which amended subsec. (c) of this section] shall apply to taxable years beginning on or after January 1, 2006.

    Applicability of 2011 amendment to subsec. (b). 2011, No. 45 , § 37(6) provides: “Secs. 20 [which amended subsec. (b) of this section] and 21 [which amended 32 V.S.A. § 5920 ] (mandatory composite filing for pass-through entities with large number of nonresident owners) shall apply to taxable years beginning on and after January 1, 2012.”

    § 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.

    HISTORY: 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.

    History

    Amendments

    —2015 (Adj. Sess.). Amended generally.

    —1997 (Adj. Sess.). Substituted “$250.00” for “$150.00”.

    Applicability of enactment.

    See note set out under § 5910 of this title.

    1997 (Adj. Sess.). 1997, No. 71 (Adj. Sess.), §§ 27a(c) and 123(d), provide that the amendment to this section by § 27a(a) of that act shall apply to taxable years beginning on and after January 1, 1998.

    § 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.

    HISTORY: Added 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996.

    History

    Applicability of enactment.

    See note set out under § 5910 of this title.

    ANNOTATIONS

    Construction.

    Because 1996 statute, which explicitly disallowed credit for taxes imposed by other jurisdictions on S corporation income, was an amendment to existing tax credit provision and not a clarification of preexisting law, taxpayers were entitled to a credit on their 1989 income tax return for their pro rata share of taxes paid by their S corporation to states that did not recognize pass-through taxation treatment of such corporations. Tarrant v. Department of Taxes, 169 Vt. 189, 733 A.2d 733, 1999 Vt. LEXIS 79 (1999).

    Subchapter 10B. Taxation of Partnerships and Limited Liability Companies

    § 5920. Returns and mandatory payments.

    1. 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.
    2. 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 middle marginal rate on behalf of all of its nonresident partners or members.
    3. 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.
    4. 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.
    5. 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.
      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: (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:
        1. a housing subsidy covenant that has been granted to the Vermont Housing and Conservation Board;
        2. a regulatory agreement or LIHTC housing subsidy covenant that has been granted to the Vermont Housing Finance Agency;
        3. a housing assistance payment contract with the U.S. Department of Housing and Urban Development pursuant to 24 C.F.R. Part 883; or
        4. 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.
      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: (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:
        1. 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;
        2. instruct each nonresident partner or nonresident member to pay such tax; and
        3. 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:
        1. has been determined by the U.S. Department of the Treasury to be a community development entity;
        2. has been awarded an allocation of federal new market tax credits under 26 U.S.C. § 45D; and
        3. is a partnership or limited liability corporation that is a pass-through of the federal new market tax credit to the nonresident investor.
      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. (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:
        1. 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
        2. 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.

    HISTORY: 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.

    History

    Amendments

    —2019. Subsec. (h): Added the subdiv. (h)(1) designation; in subdiv. (h)(1), inserted “and any compliance and payment obligations”, substituted “subsections (b) and” for “subsection”, inserted “under subdivision (2) of this subsection,” and deleted the former second sentence; added subdivs. (h)(2) through (h)(5). su

    —2015 (Adj. Sess.). Redesignated subsec. (f) as subdiv. (f)(1); redesignated subdivs. (f)(1) through (f)(4) as (f)(1)(A) through (f)(1)(D); and redesignated previously undesignated text as subdiv. (f)(2).

    —2015. Subsec. (h): Added.

    —2011 (Adj. Sess.). Subsec. (g): Added.

    —2011. Subsec. (b): Added the second sentence.

    —2005 (Adj. Sess.). Subsec. (c): Substituted “next-to-lowest marginal tax rate” for “highest marginal tax rate” in the last sentence.

    —2005. Subsec. (c): In the last sentence, deleted “federal” following “highest”, “in effect for individuals multiplied by the rate” following “tax rate” and “reflected on the partnership’s or limited liability company’s declaration of estimated tax on the taxable period” following “Vermont”.

    —1999 (Adj. Sess.). Subsec. (c): Added the proviso at the end of the second sentence.

    —1997. Subsec. (c): Inserted “nonresident” preceding “partners or nonresident” in the first sentence.

    Subsec. (f): Added.

    Applicability of 1995, No. 169 (Adj. Sess.) enactment. 1995, No. 169 (Adj. Sess.), § 27, eff. May 15, 1996, provided that § 24 of that act, which enacted this subchapter, shall apply to tax years beginning on and after Jan. 1, 1997, but before Jan. 1, 2000; however, 1999, No. 49 , § 68, provided: “Notwithstanding Sec. 27 of No. 169 of the Acts of 1995 (Adj. Sess.), Secs. 21 through 24 of that act (relating to the taxation of S corporations and to the taxation of partnerships and limited liability companies) shall also apply to tax years beginning on and after January 1, 2000. Sections 5915 and 5921 of Title 32 shall continue in effect as amended in Acts 71 and 156 of the Acts of 1998.”.

    Applicability of 1995, No. 179 (Adj. Sess.) enactment. 1995, No. 179 (Adj. Sess.), § 18(d), eff. May 22, 1996, provided that § 5 of that act, which enacted this section, shall apply to tax years beginning on and after Jan. 1, 1997.

    Applicability of 2005 (Adj. Sess.) amendment. 2005, No. 207 (Adj. Sess.), § 26(1) provides that § 2 of that act [which amended subsec. (c) of this section] shall apply to taxable years beginning on or after January 1, 2006.

    Applicability of 2011 amendment to subsec. (b). 2011, No. 45 , § 37(6) provides: “Secs. 20 [which amended 32 V.S.A. § 5914 ] and 21 [which amended subsec. (b) this section] (mandatory composite filing for pass-through entities with large number of nonresident owners) shall apply to taxable years beginning on and after January 1, 2012.”

    § 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.

    HISTORY: 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.

    History

    References in text.

    The Internal Revenue Code, referred to in this section, is codified at Title 26 of the United States Code.

    Amendments

    —1997 (Adj. Sess.). Act No. 71 substituted “$250.00” for “$150.00”.

    Act No. 156 added the last sentence, which sets the annual investment income and asset ceilings for tax exemption.

    —1997. Substituted “for state purposes in the same manner as taxed under the Internal Revenue Code” for “as a corporation under this chapter” in the third sentence.

    Effective date of amendments—

    1997 (Adj. Sess.). 1997, No. 71 (Adj. Sess.), §§ 27a(c) and 123(d), provide that the amendment to this section by § 27a(b) of that act shall apply to taxable years beginning on and after January 1, 1998. 1997, No. 156 (Adj. Sess.), § 59, provides that the amendment to this section by § 37a of the act (minimum tax exemption for investment partnerships) shall also apply to taxable years beginning on and after January 1, 1998.

    Applicability of 1995, No. 169 (Adj. Sess.) enactment. See note set out under § 5920 of this title.

    Subchapter 11. Financial Services Development Tax Credit

    § 5922. Financial services development tax credit.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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:

      Click to view

      The recapture shall be reported on the taxpayer’s income tax return for the tax year in which the 120-day threshold is exceeded.

    6. 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.

    2 or less 100% More than 2 and up to 4 50% More than 4 but no more than 6 25%

    HISTORY: 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.

    History

    References in text.

    The reference to the Federal Investment Company of 1940, referred to in subdiv. (a)(3), is codified as 15 U.S.C. § 80a -1 et seq. and 17 C.F.R. Part 270.

    Revision note

    —2013. In subsec. (a), substituted “As used in” for “For the purposes of” preceding “this section” to conform to V.S.A. style, and in subsec. (f), struck “, housing and community” in light of Executive Order No. 3-56 (No. 01-13), effective April 12, 2013.

    Revision note—. This section, which was enacted as § 5910, was redesignated to avoid conflict with § 5910 as added by 1995, No. 169 (Adj. Sess.), § 21, eff. May 15, 1996.

    Amendments

    —2011 (Adj. Sess.). Subsec. (f): Amended generally.

    —2003 (Adj. Sess.). Subdiv. (a)(1): Substituted “corporation, partnership, limited liability company, sole proprietor or trust” for “person”.

    Subdiv. (a)(4): Deleted “individual” preceding “compensation” and inserted “by the qualified person’s employees, related to investment advisor, investment management or investment company” following “performance”.

    Subdiv. (a)(5): Inserted “who are unrelated persons” following “residents” and “for unrelated persons” following “business”.

    Subdiv. (a)(6): Inserted “for employees’ services related to investment advisor, investment management, or investment company services” following “compensation”.

    Subdiv. (a)(7): Added.

    Subsec. (c): Amended generally.

    —2001 (Adj. Sess.) Subsec. (f): Deleted the former second sentence, which addressed the availability of tax credits after December 31, 2001, and added the present second, third, and fourth sentences.

    —1999. Subsec. (f): Substituted “$50,000,000.00” for “$80,000,000.00”.

    §§ 5923, 5924. Repealed.

    History

    Former §§ 5921-5924. Former §§ 5921-5924, pertaining to tax credit for renewable energy sources, were deleted because, by their own terms, they are now obsolete.

    Former § 5921, relating to definitions used in former subchapter 11, was derived from 1977, No. 210 (Adj. Sess.).

    Former § 5922, relating to tax credits for private residences, was derived from 1977, No. 210 (Adj. Sess.), and amended by 1983, No. 82 , § 1.

    Former § 5923, relating to tax credits for businesses, was derived from 1977, No. 210 (Adj. Sess.), and amended by 1983, No. 82 . § 2.

    Former § 5924, relating to authorization for rule-making, was derived from 1977, No. 210 (Adj. Sess.).

    Subchapter 11A. Tax Credits Relating to a Job Development Zone

    History

    Revision note—

    This subchapter, comprising §§ 5925 and 5926, which was originally enacted as subchapter 12, was redesignated as subchapter 11A in light of an existing subchapter 12, comprising §§ 5931-5940, and to conform to the existing organization of subject matter in this chapter.

    § 5925. Repealed. 2015, No. 57, § 98, effective June 11, 2015.

    History

    Former § 5925. Former § 5925, relating to definitions for expired section, was derived from 1985, No. 172 (Adj. Sess.), § 9.

    § 5926. Repealed. 2005, No. 75, § 16, eff. June 23, 2005.

    History

    Former § 5926. Former § 5926, relating to expired credit for new jobs in a development zone, was derived from 1985, No. 172 (Adj. Sess.), § 9.

    Subchapter 11B. Research and Development Tax Credit

    §§ 5927, 5928. Repealed. 2005, No. 75, § 16, eff. June 23, 2005.

    History

    Former §§ 5927, 5928. Former §§ 5927 and 5928, relating to expired research and development credit, were derived from 1991, No. 209 (Adj. Sess.), § 1.

    Subchapter 11C. New Jobs Tax Credit

    § 5929. Repealed. 2005, No. 94 (Adj. Sess.), § 5, eff. March 8, 2006.

    History

    Former § 5929. Former § 5929, relating to new jobs income tax credit, was derived from 1993, No. 89 , § 11 and amended by 1995, No. 46 , §§ 53, 54; 1995, No. 190 (Adj. Sess.), § 1(b).

    Subchapter 11D. Manufacturer’s Investment Tax Credit

    § 5930. Repealed. 2005, No. 94 (Adj. Sess.), § 5, eff. March 8, 2006.

    History

    Former § 5930. Former § 5930, relating to manufacturer’s investment tax credit, was derived 1993, No. 89 , § 12 and amended by 1995, No. 46 , §§ 55, 56; 1995, No. 190 (Adj. Sess.), § 1(b).

    Subchapter 11E. Economic Advancement Tax Incentives

    History

    Applicability. 1997, No. 71 (Adj. Sess.), § 81(a) provides: “Sec. 48 [which enacted this subchapter] (tax credits) shall apply to tax years beginning on or after September 1, 1998.”

    § 123(f) of that act provides: “The economic advancement incentives provided in Sec. 48 of this act, establishing subchapter 11E of chapter 151 of Title 32, shall take effect for tax years beginning on and after January 1, 1998, except that those provisions of 32 V.S.A. § 5930a , providing additional functions to the Vermont economic progress council, shall take effect from passage.”

    §§ 5930a, 5930b. Repealed. 2015, No. 157 (Adj. Sess.), § H.11, eff. January 1, 2017.

    History

    Former §§ 5930a, 5930b. Former § 5930a, relating to the Vermont Economic Progress Council, was derived from 1997, No. 71 (Adj. Sess.), § 48 and amended by 1999, No. 159 (Adj. Sess.), § 4; 1999, No. 159 (Adj. Sess.), §§ 5-12; 2003, No. 67 , §§ 8-14; 2005, No. 184 (Adj. Sess.), §§ 5-7, 12; 2007, No. 81 , §§ 14, 15; 2009, No. 54 , §§ 14, 64; 2011, No. 52 , § 3; and 2015, No. 51 , § G.1.

    Former § 5930b, relating to the Vermont Employment Growth Incentive, was derived from 1997, No. 71 (Adj. Sess.), § 48 and amended by 2001, No. 138 (Adj. Sess.), § 3; 2003, No. 67 , § 15; 2005, No. 184 (Adj. Sess.), § 9; 2007, No. 81 , §§ 16-21; 2007, No. 190 (Adj. Sess.), §§ 28, 42; 2007, No. 190 (Adj. Sess.), § 41 2009, No. 54 , §§ 12, 15; 2009, No. 160 (Adj. Sess.), § 10; 2011, No. 45 , § 14; 2011, No. 52 , § 5 2011, No. 143 (Adj. Sess.), §§ 18, 19; 2013, No. 174 (Adj. Sess.), § 4; and 2015, No. 51 , § G.2

    VEGI; Repeal of authority to award incentives. 2015, No. 157 (Adj. Sess.), § H.12, effective January 1, 2017 provides: “Notwithstanding any provision of law to the contrary, the Vermont Economic Progress Council shall not accept or approve an application for a Vermont Employment Growth Incentive under 32 V.S.A. chapter 105, subchapter 2 on or after January 1, 2021.”

    §§ 5930c-5930i. Repealed. 2005, No. 184 (Adj. Sess.), § 4(a), eff. January 1, 2017.

    History

    Former §§ 5930c-5930i. Former § 5930c, relating to the economic advancement payroll tax credit, was derived from 1997, No. 71 (Adj. Sess.), § 48 and amended by 2003, No. 67 , § 16; 2005, No. 184 (Adj. Sess.), § 4.

    Former § 5930d, relating to the economic advancement research and development tax credit, was derived from 1997, No. 71 (Adj. Sess.), § 48 and amended by 2005, No. 184 (Adj. Sess.), § 4.

    Former § 5930e, relating to the workforce development incentive tax credit, was derived from 1997, No. 71 (Adj. Sess.), § 48 and amended by 2003, No. 67 , § 18 and 2005, No. 184 (Adj. Sess.), § 4.

    Former § 5930f, relating to the Vermont export tax incentive, was derived from 1997, No. 71 (Adj. Sess.), § 48 and amended by 1999, No. 49 , § 72; 2001, No. 138 (Adj. Sess.), § 6; 2003, No. 67 , § 19; and 2005, No. 184 (Adj. Sess.), § 4.

    Former § 5930g, relating to the capital investment tax credit, was derived from 1997, No. 71 (Adj. Sess.), § 48 and amended by 1999, No. 159 (Adj. Sess.), § 13; 2001, No. 138 (Adj. Sess.), § 7; 2003, No. 67 , § 20; and 2005, No. 184 (Adj. Sess.), § 4.

    Former § 5930h, relating to carry-forward, carry-back, and recapture for substantial curtailment of trade or business, was derived from 1997, No. 71 (Adj. Sess.), § 48 and amended by 1999, No. 159 (Adj. Sess.), § 14; 2003, No. 67 , § 21; and 2005, No. 184 (Adj. Sess.), § 4.

    Former § 5930i, relating to credit allocation, was derived from 1997, No. 71 (Adj. Sess.), § 48 and amended by 2003, NO. 67, § 21a and 2005, No. 184 (Adj. Sess.), § 4.

    § 5930j. Repealed. 2005, No. 184 (Adj. Sess.), § 16.

    History

    Former § 5930j. Former § 5930j, relating to long-term economic development planning, was derived from 1997, No. 147 (Adj. Sess.), § 214 and amended by 2003, No. 67 , § 22.

    § 5930k. Repealed. 2005, No. 184 (Adj. Sess.), § 4(a), eff. January 1, 2017.

    History

    Former § 5930k. Former § 5930k, relating to high-tech growth incentives, was derived from 2001, No. 138 (Adj. Sess.), § 4 and amended by 2003, No. 67 , § 23 and 2005, No. 184 (Adj. Sess.), § 4.

    Subchapter 11F. Tax Credit for Rehabilitation of Historic Buildings

    § 5930n. Repealed. 2005, No. 183 (Adj. Sess.), § 16(b).

    History

    Former § 5930n. Former § 5930n, relating to tax credit for substantial rehabilitation of historic buildings also claiming federal rehabilitation tax credit, was derived from 1997, No. 120 (Adj. Sess.), § 3 and amended by 1999, No. 159 (Adj. Sess.), § 1; 2001, No. 114 (Adj. Sess.), § 8; and No. 114 (Adj. Sess.), § 13. For present provisions see § 5930cc of this title.

    Subchapter 11G. Rehabilitation Tax Credit

    §§ 5930p-5930r. Repealed. 2005, No. 183 (Adj. Sess.), § 16(b).

    History

    Former §§ 5930p-5930r. Former § 5930p, relating to rehabilitation tax credit for older or historic buildings, was derived from 1997, No. 120 (Adj. Sess.), § 4 and amended by 1999, No. 159 (Adj. Sess.), § 2; 2001, No. 114 (Adj. Sess.), § 9; No. 114 (Adj. Sess.), §§ 14, 15; and 2005, No. 103 (Adj. Sess.), § 3. For present provisions see § 5930cc of this title.

    Former § 5930q, relating to tax credit for platform lifts, elevators, or sprinkler systems, was derived from 2001, No. 114 (Adj. Sess.), § 10 and amended by 2005, No. 103 (Adj. Sess.), § 3. For present provisions see § 5930cc of this title.

    Former § 5930r, relating to tax credit for code improvements to commercial buildings, was derived from 2001, No. 114 (Adj. Sess.), § 11 and amended by 2003, No. 114 (Adj. Sess.), § 16 and 2005, No. 103 (Adj. Sess.), § 3. For present provisions see § 5930cc of this title.

    Subchapter 11H. Training Tax Credit

    § 5930t. Repealed. 2005, No. 207 (Adj. Sess.), § 12, eff. May 31, 2006.

    History

    Former § 5930t. Former § 5930t, relating to tax credit for training employees, was derived from 1997, No. 120 (Adj. Sess.), § 5a and amended by 1999, No. 49 , § 37b and 2003, No. 70 (Adj. Sess.), § 44.

    Subchapter 11I. Affordable Housing Tax Credit

    History

    Efficiency use of credits. 2011, No. 143 (Adj. Sess.), § 21a provides: “It is the intent of the general assembly that housing purchased as the result of an allocation of credits in this act for owner-occupied units shall be as energy efficient as affordability, building design, and funding allow.”

    § 5930u. Tax credit for affordable housing.

    1. As used in this section:
      1. “Affordable housing project” or “project” means:
        1. a rental housing project identified in 26 U.S.C. § 42(g) ; or
        2. 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 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:
        1. 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
        2. 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:
        1. requirements for creation and retention of affordable housing for persons with low income; and
        2. 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.
    2. Eligible tax credit allocations.
      1. Affordable housing credit allocation for rental housing.
        1. 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.
        2. 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:
          1. 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
          2. the project has received community support.
      2. Affordable housing credit allocation for loans or grants for owner-occupied housing.
        1. 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.
        2. 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.
        3. 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.
        4. 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. Down Payment Assistance Program.
        1. 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:
          1. the loan is made in connection with a mortgage through an Agency program;
          2. the borrower is a first-time home buyer of an owner-occupied primary residence; and
          3. the borrower uses the loan for the borrower’s down payment or closing costs, or both.
        2. The Agency shall require the borrower to repay the loan upon the transfer or refinance of the residence.
        3. The Agency shall use the proceeds of loans made under the Program for future down payment assistance.
    3. 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.
    4. 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.
    5. 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), 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.
    6. [Repealed.]
      1. In any fiscal year, the allocating agency may award up to: (g) (1) In any fiscal year, the allocating agency may award up to:
        1. $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);
        2. $425,000.00 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 $2,125,000.00 over any given five-year period that credits are available under this subdivision (B).
      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.
      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. (h) (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.

    HISTORY: 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.

    History

    Editor’s note

    —2016. Sec. 5930u was amended in a conflicting manner by two acts, No. 97 (Adj. Sess.)—a general technical corrections bill—and No. 157 (Adj. Sess.)—a bill specifically related to economic development—that took effect on the same date. Based on the principle of statutory construction that the specific takes precedence over the general, only the changes from No. 157 (Adj. Sess.) are reflected in the text above.

    Amendments

    —2019. Section amended generally.

    —2017. Subdiv. (a)(5): Inserted a comma following “income tax”; and inserted “, captive insurance premium,” following “franchise”.

    Subsec. (c): Inserted “captive insurance premium,” following “franchise”.

    —2015 (Adj. Sess.). Subdiv. (g)(1): Act No. 157 substituted “an” for “a total” preceding “aggregate” in subdivs. (A) and (B), and substituted “this subdivision (A)” for “this subdivision” in subdiv. (A) and “this subdivision (B)” for “this subdivision” in subdiv. (B).

    Subdiv. (g)(2): Act No. 97 substituted “over any given five-year” for “over the five-year”.

    Subdiv. (g)(2): Amended generally by Act No. 157.

    Subsec. (h): Amended generally by Act No. 157.

    —2015. Section amended generally.

    —2011 (Adj. Sess.). Subsec. (g): substituted “$300,000.00” for “$100,000.00” in the first sentence, and substituted “$3,500,000.00” for “$2,500.000.00” in the last sentence.

    —2007 (Adj. Sess.). Inserted “rental housing” preceding “project identified” and “or owner-occupied housing identified in 26 U.S.C. § 143(e) and (f) and eligible under the Vermont housing finance agency allocation plan criteria” in subdiv. (a)(1); added subdiv. (a)(9); amended subdiv. (b)(1) generally; inserted “or meets the requirements of the allocation plan for development of units to be owner-occupied” at the end of subdiv. (b)(2)(A); substituted “for rental housing projects; and may award up to $100,000.00 per year for owner-occupied units applicants” for “under this subchapter” in the first sentence and “$2,500,000.00” for “$2,000,000.00” in the second sentence in subsec. (g).

    —2005 (Adj. Sess.). Subsec. (c): Added the last sentence.

    Subsecs. (d) and (g): Amended generally.

    —2005. Subdiv. (a)(5): Substituted “franchise or insurance premium tax liability as” for “franchise tax as”.

    Subsec. (c): Substituted “corporate, franchise or insurance premium tax liability a” for “corporate, or franchise tax a”.

    —2003 (Adj. Sess.). Subsec. (a): Added subdiv. (5), redesignated former subdiv. (5) as present subdiv. (6), deleted former subdiv. (6) and added subdiv. (7), and redesignated former subdiv. (7) as subdiv. (8).

    Subsec. (c): Rewrote the first sentence and substituted “specified on the taxpayer’s credit certificate” for “equal to 25 percent of the qualified basis of the project” at the end of the subsection.

    Subsec. (d): Substituted “taxpayer” for “owner” and substituted “eligible cash contribution is made” for “affordable housing project is placed in service”.

    Subsec. (e): Substituted “to the affordable housing project and the taxpayer’s credit certificate” for “and a copy of the federal income tax return claiming the Section 42 credit” at the end of the first sentence.

    Subsec. (f): Deleted.

    Subsec. (g): Substituted “allocating agency” for “state board”.

    —2001. Subsec. (g): Substituted “$150,000.00” for “$100,000.00”.

    Effective date of 2017 amendment. 2017, No. 69 , § N.1(b) provides that the amendments to this section shall take effect on the date of enactment of the fiscal year 2018 annual budget, which occurred on June 28, 2017.

    § 5930v. Repealed. 2009, No. 1 (Sp. Sess.), § H.28(a), eff. January 1, 2010.

    History

    Former § 5930v. Former § 5930v, relating to the angel venture capital credit, was derived from 2003, No. 67 , § 24 and amended by 2005, No. 207 (Adj. Sess.), § 10 and 2009, No. 1 (Sp. Sess.), § H28.

    §§ 5930w-5930x. Repealed. 2005, No. 184 (Adj. Sess.), § 4(a), eff. January 1, 2017.

    History

    Former §§ 5930w and 5930x. Former § 5930w, relating to the economic advancement sustainable technology research and development tax credit, was derived from 2003, No. 67 , § 24b and amended by 2005, No. 184 (Adj. Sess.), § 4.

    Former § 5930x, relating to the economic advancement sustainable technology export tax credit, was derived from 2003, No. 67 , § 24c and amended by 2005, No. 184 (Adj. Sess.), § 4.

    § 5930y. Repealed. 2013, No 73, § 24, eff. January 1, 2014.

    History

    Former § 5930y. Former § 5930y, relating to wood products manufacture tax credit, was derived from 2005, No. 2 (Sp. Sess.), § 1, eff. June 22, 2005 as amended by 2011, No. 45 , § 17a, eff. May 24, 2011 and was repealed by 2005, No. 2 (Sp. Sess.), § 2, eff. July 1, 2006 as amended by 2005, No. 212 (Adj. Sess.), § 9; 2007, No. 190 (Adj. Sess.), § 29; 2011, No. 45 , § 17; and 2013, No. 73 , § 24.

    § 5930z. Repealed. 2019, No. 51, § 40(1), eff. Jan. 1, 2019.

    History

    Former § 5930z. Former § 5930z, relating to business solar energy tax credit, was derived from 2007, No. 92 (Adj. Sess.), § 28 and amended by 2009, No. 45 , § 9a; 2009, No. 54 , § 98; 2009, No. 159 (Adj. Sess.), § 11; 2011, No. 47 , § 20h; 2011, No. 139 (Adj. Sess.), § 36; and 2015, No. 131 (Adj. Sess.), § 13.

    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 or village center, 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 organizations may be qualified buildings, but in no event shall tax credits be used for religious worship.
    3. “Qualified code improvement project” means a project:
      1. 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;
      2. to abate lead paint conditions or other substances hazardous to human health or safety in a qualified building; or
      3. to redevelop a contaminated property in a designated downtown or village center 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 fagade improvement project” means the rehabilitation of the fagade of a qualified building that contributes to the integrity of the designated downtown or designated village center. Fagade 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 historic rehabilitation project” means an historic rehabilitation project that has received federal certification for the rehabilitation project.
    7. “Qualified project” means a qualified code improvement, qualified fagade improvement, or qualified historic rehabilitation project as defined by this subchapter.
    8. “State Board” means the Vermont Downtown Development Board established pursuant to 24 V.S.A. chapter 76A.

    HISTORY: 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.

    History

    Amendments

    —2019 (Adj. Sess.). Subdiv. (2): Substituted “organizations” for “organization” in the second sentence.

    —2019. Subdiv. (1): Deleted “a religious entity operating with a primarily religious purpose;” preceding “a State or Federal”. su

    Subdiv. (2): Substituted “at least 30 years before the date of application” for “prior to 1983” in the first sentence, and added the second sentence. su

    Subdiv. (3)(A): Deleted “or technology” preceding “improvement”, deleted the subdiv. (3)(A)(i) designation, and deleted subdiv. (3)(A)(ii). su

    Subdiv. (7): Deleted “or technology” following “qualified code” and “qualified technology infrastructure project” preceding “or qualified historic”. su

    —2015. Subdiv. (3)(A)(i): Inserted “limited use/limited application elevators” preceding “elevators”.

    —2013 (Adj. Sess.). Subdiv. (3): Inserted “or technology” following “‘Qualified code”.

    Subdiv. (3)(A)(ii): Added.

    Subdiv. (7): Inserted “or technology” following “qualified code”, “qualified” preceding “fagade improvement”, and substituted “qualified technology infrastructure project, or qualified historic” for “or historic” preceding “rehabilitation project”.

    § 5930bb. Eligibility and administration.

    1. 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.
    2. To qualify for any of the tax credits under this subchapter, expenditures for the qualified project must exceed $5,000.00.
    3. Application shall be made in accordance with the guidelines set by the State Board.
    4. Notwithstanding any other provision of this subchapter, qualified applicants may apply to the State Board at any time prior to June 30, 2013 to obtain a tax credit not otherwise available under subsections 5930cc(a)-(c) of this title of 10 percent of qualified expenditures resulting from damage caused by a federally declared disaster in Vermont in 2011. The credit shall only be claimed against the taxpayer’s State individual income tax under section 5822 of this title. To the extent that any allocated tax credit exceeds the taxpayer’s tax liability for the first tax year in which the qualified project is completed, the taxpayer shall receive a refund equal to the unused portion of the tax credit. If within two years after the date of the credit allocation no claim for a tax credit or refund has been filed, the tax credit allocation shall be rescinded and recaptured pursuant to subdivision 5930ee(6) of this title. The total amount of tax credits available under this subsection shall not be more than $500,000.00 and shall not be subject to the limitations contained in subdivision 5930ee(2) of this subchapter.

    HISTORY: 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.

    History

    Amendments

    —2017. Subsec. (a): Substituted “the” for “one year after” preceding “completion”.

    —2013 (Adj. Sess.). Subsec. (a): Substituted “a qualified project” for “qualified code improvement, fagade improvement, or historic rehabilitation projects” following “this subchapter for”.

    —2011 (Adj. Sess.). Subsec. (d): Added.

    Effective date of 2017 amendment. 2017, No. 69 , § N.1(b) provides that the amendments to this section shall take effect on the date of enactment of the fiscal year 2018 annual budget bill, which occurred on June 28, 2017.

    § 5930cc. Downtown and Village Center Program tax credits.

    1. 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 the Internal Revenue Code, 26 U.S.C. § 47(c) , properly chargeable to the federally certified rehabilitation.
    2. Fagade improvement tax credit.   The qualified applicant of a qualified fagade 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.
    3. 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 $50,000.00 for the combined costs of all other qualified code improvements.

    HISTORY: 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.

    History

    Amendments

    —2019. Subsec. (c): Deleted “or technology” in the introductory language and the first sentence, substituted “$60,000.00” for “$40,000.00” and “$75,000.00” for “$50,000.00”, and deleted “a maximum tax credit of $30,000.00 for the combined costs of installation or improvement of data or network wiring or a heating, ventilating, or cooling system,” following “a sprinkler system,”. su

    —2015. Subsec. (c): Inserted “a maximum credit of $40,000.00 for the installation or improvement of a limited use/limited application elevator” following “platform lift” and substituted “$50,000.00” for “$25,000.00” preceding “for the combined costs of all other qualified code improvements”.

    —2013 (Adj. Sess.). Subsec. (c): Inserted “or technology” twice and “a maximum tax credit of $30,000.00 for the combined costs of installation or improvement of data or network wiring or a heating, ventilating, or cooling system,” following “improvement of a sprinkler system,”.

    § 5930dd. Claims; availability.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.

    HISTORY: 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.

    History

    Amendments

    —2019. Subsec. (c): Rewrote subsection. su

    —2011. Subsec. (b): Added the second and third sentences.

    —2009 (Adj. Sess.) Subsec. (f): Added.

    Applicability of 2009 (Adj. Sess.) amendment. 2009, No. 160 (Adj. Sess.), § 62(8) provides that §§ 30 and 31 [which amended this section and § 5930ff of this title] of that act (downtown insurance credit certificates) shall take effect upon passage and shall apply to tax years beginning on or after January 1, 2010.

    § 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. fagade 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.

    HISTORY: 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.

    History

    Amendments

    —2019 (Adj. Sess.). Subdiv. (1): Substituted “$3,000,000.00” for “$2,600,000.00”.

    —2019. Subdiv. (1): Substituted “$2,600,000.00” for “$2,400,000.00”. su

    —2017. Subdiv. (1): Substituted “$2,400,000.00” for “2,200,000.00” following “does not exceed”.

    —2013 (Adj. Sess.). Subdiv. (1): Substituted “$2,200,000.00” for “$1,700,000.00” at the end.

    —2011. Subdiv. (6): Added.

    —2009. Substituted “2010” for “2008” in the first undesignated paragraph and substituted “$1,700,000.00” for “$1,600,000.00” in subdiv. (1).

    —2007. Substituted “2008” for “2007” in the introductory paragraph, and “$1,600,000.00” for “$1,500,000.00” in subdiv. (1).

    Effective date of 2017 amendment. 2017, No. 69 , § N.1(b) provides that the amendments to this section shall take effect on the date of enactment of the fiscal year 2018 annual budget bill, which occurred on June 28, 2017.

    § 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.

    HISTORY: Added 2005, No. 183 (Adj. Sess.), § 12; amended 2009, No. 160 (Adj. Sess.), § 31.

    History

    Amendments

    —2009 (Adj. Sess.) Inserted “or insurance” preceding “credit certificate” in the introductory paragraph.

    Applicability of 2009 (Adj. Sess.) amendment. 2009, No. 160 (Adj. Sess.), § 62(8) provides that §§ 30 and 31 [which amended this section and § 5930dd of this title] of that act (downtown insurance credit certificates) shall take effect upon passage and shall apply to tax years beginning on or after January 1, 2010.

    Subchapter 11L. Research and Development Tax Credit

    § 5930ii. Research and development tax credit.

    1. 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.
    2. Any unused credit available under subsection (a) of this section may be carried forward for up to 10 years.
    3. 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.

    HISTORY: Added 2009, No. 2 (Sp. Sess.), § 22; amended 2013, No. 174 (Adj. Sess.), § 37, eff. Jan. 1, 2014.

    History

    Revision note

    —2021. In subsec. (a), substituted “that” for “and which” to correct grammatical errors.

    Amendments

    —2013 (Adj. Sess.). Subsec. (a): Substituted “27 percent” for “30 percent” following “in an amount equal to”.

    Subsec. (c): Added.

    Applicability of section. 2009, No. 2 (Sp. Sess.), § 23 provides: “Sec. 22 of this act [which added this section] shall apply to eligible research and development expenditures made on or after January 1, 2011.”

    Applicability of 2013 (Adj. Sess.) amendment. Act No. 174, § 70(12) provides that “Sec. 37 (research and development) [which amended subsec. (a) and added subsec. (c)] shall take effect retroactively on January 1, 2014, and shall apply to any claims for credits filed after that date.”

    Subchapter 11M. Machinery and Equipment Investment Tax Credit

    History

    Prospective repeal of subchapter. 2009, No. 156 (Adj. Sess.), § H.2, provided: “Subchapter 11M of chapter 151 of Title 32 is repealed July 1, 2026, and no credit under that section shall be available for any taxable year beginning after June 30, 2026; provided, however, that if no qualified capital expenditures are made during the investment period, both terms as defined in 32 V.S.A. § 5930ll(a) of this act, the subchapter shall be repealed effective January 1, 2015.”

    Applicability of subchapter. 2009, No. 156 (Adj. Sess.), § H.3, provided that § H.1 of that act [which enacted this subchapter], shall apply to taxable years beginning on and after January 1, 2012.

    § 5930ll. Section 5930ll applicable to taxable years beginning on and after January 1, 2012 and repealed effective July 1, 2026. Machinery and equipment tax credit.

    1. 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:
        1. 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;
        2. is a taxable corporation under Subchapter C of the Internal Revenue Code;
        3. 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
        4. 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.
    2. 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.
    3. 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.
    4. 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, 2026.
    5. 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.
    6. 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:
        1. the credit certification for such tax year and all succeeding tax years of the taxpayer shall be terminated;
        2. any credit previously earned and carried forward shall be disallowed; and
        3. 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:

          Click to view

      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.
    7. 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 2027, whichever occurs first.
      3. The report shall be filed by February 28 each year for activity the previous calendar year and include, at a minimum:
        1. the number of full-time jobs in each quarter and the average number of hours worked per week;
        2. the level of qualifying capital investments made if reporting on a year within an investment period; and
        3. the amount of tax credit earned and applied during the previous calendar year.

    Years between the close of the tax year Percent of credits credit was earned and year to be when repaid (%): business was substantially curtailed: 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

    HISTORY: Added 2009, No. 156 (Adj. Sess.), § H.1; amended 2015, No. 157 (Adj. Sess.), § H.8, eff. Jan. 1, 2017; repealed on July 1, 2026 pursuant to 2009, No. 156 (Adj. Sess.), § H.2.

    History

    Amendments

    —2015 (Adj. Sess.) Subdiv. (a)(1): Amended generally.

    Prospective repeal of section. 2009, No. 156 (Adj. Sess.), § H.2, provided: “Subchapter 11M of chapter 151 of Title 32 [which contained § 5930ll] is repealed July 1, 2026, and no credit under that section shall be available for any taxable year beginning after June 30, 2026; provided, however, that if no qualified capital expenditures are made during the investment period, both terms as defined in 32 V.S.A. § 5930ll(a) of this act, the subchapter shall be repealed effective January 1, 2015.”

    Applicability of section. 2009, No. 156 (Adj. Sess.), § H.3 provided that § H.1 of that act [which enacted this section], shall apply to taxable years beginning on and after January 1, 2012.

    Subchapter 11N. Recently Deployed Veteran Tax Credit

    § 5930nn. Recently deployed veteran tax credit.

    1. 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.
    2. 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.
    3. 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.
    4. In this section:
      1. “Expense associated with a start-up business” means the following expenses:
        1. expenses associated with the development of a business plan;
        2. professional services associated with the formation of the business (e.g., attorney and accounting services);
        3. an analysis or survey of potential markets, products, labor supply, or transportation facilities;
        4. advertisements for the opening of the business;
        5. salaries and wages for employees who are being trained and their instructors;
        6. travel and other necessary costs for securing prospective distributors, suppliers, or customers; and
        7. salaries and fees for executives and consultants, or for similar professional services.
      2. “New full-time employee” means a recently deployed veteran:
        1. who works at least 35 hours per week for not less than 45 of the 52 weeks following the individual’s date of hire;
        2. 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;
        3. who has certification by the Department of Labor at the time of hire of:
          1. collecting or being eligible to collect unemployment benefits; or
          2. having exhausted his or her unemployment benefits; and
        4. 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:
        1. 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
        2. has in place a valid workers’ compensation policy.
      4. “Recently deployed veteran” means an individual who:
          1. was a resident of Vermont at the time of entry into military service; or (A) (i) was a resident of Vermont at the time of entry into military service; or
          2. 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;
        1. received an honorable or general discharge from active, federal military service within the two-year period preceding the date of hire; and
        2. 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:
          1. collecting or being eligible to collect unemployment benefits; or
          2. having exhausted his or her unemployment benefits.
    5. 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.]
    6. 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).

    HISTORY: Added 2011, No. 44 , § 1, eff. May 24, 2011; amended 2015, No. 11 , § 34.

    History

    Revision note

    —2021. In subsecs. (a) and (b), substituted “May 24, 2011” for “the passage of this act” following “after.”

    Amendments

    —2015. Subsec. (e): Substituted “performance measures that demonstrate results” for “outcomes” following “goals” in subdiv. (4), deleted subdiv. (5), and redesignated former subdiv. (6) as present subdiv. (5).

    Subchapter 12. Setoff Debt Collection

    History

    1981 amendment. 1981, No. 225 (Adj. Sess.), § 2, eff. May 4, 1982, provided: “This act [which added this subchapter] shall take effect from passage [May 4, 1982] and shall affect income tax returns, property tax rebate claims and sales tax rebate claims filed on January 1, 1982 and thereafter.”

    Fiscal year 2012 setoff limit. 2011, No. 75 (Adj. Sess.), § 117(a), provides: “Notwithstanding 32 V.S.A. § 5933 , claimant agencies may submit debts of $25.00 or more for collection of debt through setoff in fiscal year 2012.”

    § 5931. Short title.

    This subchapter may be cited as the Vermont Setoff Debt Collection Act.

    HISTORY: 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.

    HISTORY: 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.

    History

    Amendments

    —2009 (Adj. Sess.) Subdiv. (8): Deleted “a district court” following “superior court”.

    —2009 Amendment. Subdiv. (1): Inserted “and a collection agency under contract with the court administrator pursuant to 4 V.S.A. § 1109(d) or 13 V.S.A. § 7171 ” following “corporation” at the end of the first sentence.

    —2007. Subdiv. (9): Inserted “, but not damages” following “fee” near the end of the subdivision.

    —2005 (Adj. Sess.). Subdiv. (2): Act No. 174 substituted “for children and families” for “of prevention, assistance, transition, and health access”.

    Subdivs. (8) and (9): Added by Act No. 167.

    —2005. Subdiv. (3): Substituted “Nondebtor spouse” for “Non-debtor spouse” and “tax return or claim under chapter 154 of this title with” for “tax return, property tax rebate claim or sales tax rebate claim with”.

    —2003. Subdiv. (4): Deleted second sentence.

    —2001 (Adj. Sess.) Subdiv. (6): Amended generally.

    —1999 (Adj. Sess.). Subdiv. (2): Substituted “department of prevention, assistance, transition, and health access” for “department of social welfare”.

    —1987 (Adj. Sess.). Subdiv. (4): Added the second sentence.

    —1985. Subdiv. (2): Added “or owing any support debt that may be collected by the department of social welfare” following “agency”.

    Subdiv. (7): Added.

    Effective date of 2003 amendment to subdiv. (4). 2003, No. 57 , § 15 provides that § 13 of that act, which amends the definition of “debt” provided in subdiv. (4) of this section, shall take effect July 1, 2004.

    Expiration of 2003 amendment to subdiv. (4). 2003, No. 57 , § 16 provides for the repeal of § 13 of that act, which amended the definition of “debt” provided in subdiv. (4) of this section, on July 1, 2007.

    § 5933. Collection of debts through setoff.

    1. 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.
    2. 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.

    HISTORY: Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 2019, No. 175 (Adj. Sess.), § 25a, eff. Oct. 8, 2020.

    History

    Amendments

    —2019 (Adj. Sess.). Subsec. (a): Substituted “$45.00” for “$50.00.”

    § 5934. Procedure for setoff.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 1997, No. 156 (Adj. Sess.), § 9, eff. April 29, 1998.

    History

    Amendments

    —1997 (Adj. Sess.). Subsec. (c): Rewrote the first two sentences.

    § 5935. Joint returns.

    1. With respect to State income tax refunds under chapter 151 of this title and payments due a claimant under chapter 154 based on rental payments, 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 of 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 his or her income.
    2. 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.
    3. 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.
    4. 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.

    HISTORY: Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 2003, No. 70 (Adj. Sess.), § 45, eff. March 1, 2004.

    History

    Amendments

    —2003 (Adj. Sess.). Section amended generally.

    § 5936. Hearing procedure.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: 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.

    History

    Amendments

    —2009 (Adj. Sess.) Subsec. (b): Inserted “civil division of the” preceding “superior court”, substituted “unit” for “county” preceding “in which” and inserted “division of the superior” following “family” in the first sentence.

    —1997. Subsec. (b): Amended generally.

    § 5937. Priorities in claims to setoff.

    Priority in multiple claims to refunds allowed to be set off under the provisions of this chapter shall be in descending order of magnitude. Notwithstanding the priority set forth above, 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.

    HISTORY: Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982.

    § 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.

    HISTORY: Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 2009, No. 160 (Adj. Sess.), § 6.

    History

    Amendments

    —2009 (Adj. Sess.) Section amended generally.

    Applicability of 2009 (Adj. Sess.) amendment. 2009, No. 160 (Adj. Sess.), § 62(13) provides that Sec. 6 (collection assistance fees) [which amends this section] shall apply to fees assessed on or after July 1, 2010.

    § 5939. Confidentiality exemption; nondisclosure.

    1. 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.
    2. 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.

    HISTORY: Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982; amended 2005, No. 14 , § 12, eff. May 3, 2005.

    History

    Amendments

    —2005. Subsec. (b): Substituted “3102” for “5815” preceding “of this title”.

    § 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.

    HISTORY: Added 1981, No. 228 (Adj. Sess.), § 1, eff. May 4, 1982.

    § 5941. Procedure for setoff of court judgments.

    1. 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.
    2. Sections 5934(c) and 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.
    3. 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.
    4. 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.
    5. 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.

    HISTORY: 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.

    History

    Revision note

    —2019. Subsec. (a): Substituted “property tax credit” for “property tax adjustment” in accordance with 2019, No. 51 , § 33(1).

    Amendments

    —2009 Amendment. Subsec. (e): Added.

    —2007. Subsec. (a): Substituted “amount of a fine, penalty, surcharge, or fee, but not damages, may” for “amounts shall” following “unpaid” and inserted “and property tax adjustment under chapter 154 of this title” following “refund”.

    Subsec. (b): Substituted “setoff” for “information” following “seeking” and inserted “under this subchapter” following “debtor”.

    § 5942. Offset for taxes owed in another state; reciprocity.

    1. 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.
    2. 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.

    HISTORY: Added 2009, No. 160 (Adj. Sess.), § 7, eff. June 4, 2010.

    Subchapter 13. Franchise Tax on Waste Facilities

    § 5951. Definitions; general provisions.

    1. 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.
    2. 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.

    HISTORY: Added 1987, No. 78 , § 17.

    § 5952. Imposition of tax.

      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. (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.
    1. The tax imposed by this section shall be in addition to any other taxes imposed on the taxpayer.
    2. 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.
    3. 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.

    HISTORY: 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.

    History

    Amendments—

    Subdiv. (a)(1): Amended generally.

    Subsec. (d): Deleted former second sentence.

    —1995 (Adj. Sess.) Section amended generally.

    —1993. Subsec. (a): Amended generally.

    —1989 (Adj. Sess.). Subsec. (a): Added the third paragraph.

    —1987 (Adj. Sess.). Subsec. (a): Act No. 278 added “regardless of the amount charged by the operator to recoup its expenses of operation, including the expense of this tax” following “$6.00 per ton” in the second sentence and added the third sentence of the first paragraph, and added the second paragraph.

    Subsec. (b): Act No. 246 added the second sentence.

    Subsec. (e): Added by Act No. 278.

    1987, No. 278 (Adj. Sess.) amendments. 1987, No. 278 (Adj. Sess.), § 16(3), eff. June 21, 1988, provided that the amendment to subsec. (a) of this section and addition of subsec. (e) of this section by §§ 7 and 8 of that act, respectively, shall apply retroactively.

    Effective dates for imposition of tax. 1987, No. 78 , § 22, provides: “The tax imposed by this act shall take effect July 1, 1987, with respect to privately owned or operated facilities, and on July 1, 1988 with respect to facilities owned and operated by municipalities or groups of municipalities organized as solid waste management districts.”

    CROSS REFERENCES

    Retention by municipality of percentage of tax due, see 10 V.S.A. § 6603d .

    § 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.

    HISTORY: 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.

    History

    Revision note—

    At the end of the introductory clause, substituted “section 5952 of this title” for “section 5952” to conform reference to V.S.A. style.

    Subdiv. (7) as added by 1987, No. 278 (Adj. Sess.), § 10, was redesignated as subdiv. (8) in order to avoid conflict with subdiv. (7) as previously added by 1987, No. 139 (Adj. Sess.).

    Amendments

    —2005. Subdiv. (1): Inserted “or composting” preceding “facility and”, deleted “recycling” preceding “facility for” and inserted “or composting” preceding “but not wastes”.

    Subdiv. (2): Substituted “septage or sludge delivered to a facility other than a landfill or incinerator” for “septage and sludge except that septage or sludge delivered to a landfill shall be subject to that tax”.

    Subdiv. (4): Amended generally.

    Subdiv. (6): Made a minor change in punctuation.

    Subdiv. (7): Added.

    —1995 (Adj. Sess.) Deleted former subdivs. (2) and (3), redesignated former subdivs. (4) through (8) as present subdivs. (2) through (6), respectively, and inserted “located inside the state” following “disposal facility” in present subdiv. (6).

    —1987 (Adj. Sess.) amendments. Subdiv. (1): Act No. 278 added “and accepted by the recycling facility for recycling but not wastes generated by the facility” as the end of the subdivision.

    Subdiv. (6): Act No. 139 made minor changes in punctuation.

    Amended generally by Act No. 278.

    Subdiv. (7): Added by Act Nos. 139 and 278.

    1987, No. 278 (Adj. Sess.) amendments. 1987, No. 278 (Adj. Sess.), § 16(3), eff. June 21, 1988, provided that the provisions of that act amending this section shall apply retroactively.

    Effective dates for imposition of tax. For effective dates for the imposition of the tax, see note set out under § 5952 of this title.

    Repeal of prospective repeal of subdiv. (7). 2007, No. 122 (Adj. Sess.), § 2, eff. May 8, 2007, repeals 2005, No. 65 , § 6, eff. June 1, 2008, which provided for the repeal of subdiv. (7) on June 30, 2008.

    § 5954. Filing of return and payment of tax.

    1. 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.
    2. 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) .

    HISTORY: Added 1987, No. 78 , § 17; amended 1995, No. 186 (Adj. Sess.), § 23, eff. May 22, 1996; 2015, No. 134 (Adj. Sess.), § 15.

    History

    Revision note—

    In subsec. (b), substituted “317(c)(6)” for “317(b)(6)” pursuant to the renumbering scheme of 1 V.S.A. § 317 .

    Amendments

    —2015 (Adj. Sess.). Subsec. (a): Added the final sentence.

    —1995 (Adj. Sess.) Designated the existing provisions of the section as subsec. (a) and added subsec. (b).

    Effective date for imposition of tax. For effective dates for the imposition of the tax, see note set out under § 5952 of this title.

    Chapter 153. Property Tax Rebates and Credits

    §§ 5961-5978. Repealed. 1997, No. 60, § 52b, eff. Jan. 1, 1999.

    History

    Former §§ 5961-5978. Former § 5961, relating to definitions, was derived from 1969, No. 139 , § 1, and amended by 1971, No. 101 , § 1; 1973, No. 81 , § 1; 1975, No. 154 (Adj. Sess.), § 15; 1981, No. 191 (Adj. Sess.), § 2; 1983, No. 70 , § 1; 1985, No. 262 (Adj. Sess.), § 3; 1987, No. 82 ,§§ 7, 10a; 1989, No. 119 , § 24; 1989, No. 125 (Adj. Sess.), § 1; No. 166 (Adj. Sess.),§§ 1, 2; No. 222 (Adj. Sess.), § 42; No. 287 (Adj. Sess.), § 1; 1991, No. 67 , § 23; 1995, No. 29 , § 30; 1995, No. 174 (Adj. Sess.), § 7; No. 178 (Adj. Sess.), § 44a; 1997, No. 50 , § 24.

    Former § 5962, relating to leases; number and identity of claimants; apportionment, was derived from 1969, No. 139 , § 2, eff. Jan. 1, 1970, and amended by 1973, No. 81 , § 2; 1973, No. 81 , § 2; 1989, No. 222 (Adj. Sess.), § 12; 1993, No. 31 , § 1.

    Former § 5963, relating to claim as personal; escheat, was derived from 1969, No. 139 , § 3, eff. Jan. 1, 1970, and amended by 1983, No. 70 , § 2.

    Former § 5964, relating to claim applied against outstanding liabilities, was derived from 1969, No. 139 , § 4.

    Former § 5965, relating to forms and tables, was derived from 1969, No. 139 , § 5, and amended by 1985, No. 88 , § 6a; 1989, No. 287 (Adj. Sess.), §§ 5, 9; 1995, No. 29 , § 31.

    Former § 5966, relating to rent certificates, was derived from 1989, No. 287 (Adj. Sess.), § 6, and amended by 1991, No. 186 (Adj. Sess.), § 15a; 1995, No. 178 (Adj. Sess.), § 44b.

    Former § 5967, relating to computation of credit, was derived from 1969, No. 139 , § 7, and amended by 1971, No. 101 , § 3; 1973, No. 81 , § 3; 1981, No. 191 (Adj. Sess.), § 3; 1985, No. 88 , § 3; 1985, No. 262 (Adj. Sess.), § 1; 1987, No. 84 , § 7; 1989, No. 119 , § 25; 1995, No. 29 , § 32.

    Former § 5967a, relating to tax credits, was derived from 1989, No. 287 (Adj. Sess.), § 2, amended by 1995, No. 29 , § 33, and was previously repealed by 1997, No. 71 (Adj. Sess.), § 19.

    Former § 5968, relating to limitations, was derived from 1969, No. 139 , § 8, and amended by 1973, No. 81 , § 4; 1975, No. 154 (Adj. Sess.), § 15; 1985, No. 88 , § 4; 1987, No. 84 , § 8; 1989, No. 287 (Adj. Sess.), § 2a; 1995, No. 29 , § 34.

    Former § 5969, relating to filing time limit for property taxes, was derived from 1969, No. 139 , § 9.

    Former § 5970, relating to time for filing, was derived from 1969, No. 139 , § 10, and amended by 1981, No. 191 (Adj. Sess.), § 4; 1985, No. 88 , § 6; 1989, No. 287 (Adj. Sess.), § 3.

    Former § 5971, relating to reduction of claim by amount of public funds granted for taxes, was derived from 1969, No. 139 , § 11, and previously repealed by 1971, No. 73 , § 51, No. 101 , § 4.

    Former § 5972, relating to disallowed claims, was derived from 1969, No. 139 , § 12, and amended by 1989, No. 287 (Adj. Sess.), § 4.

    Former § 5973, relating to excessive and fraudulent claims, was derived from 1969, No. 139 , § 13, eff. Jan. 1, 1970; and amended by 1973, No. 81 , § 5; 1981, No. 191 (Adj. Sess.), §§ 5, 7.

    Former § 5974, relating to appeals, was derived from 1969, No. 139 , § 14, and amended by 1973, No. 193 (Adj. Sess.), § 3; 1973, No. 193 (Adj. Sess.), § 3; 1995, No. 169 (Adj. Sess.), § 17.

    Former § 5975, relating to regulations of the Commissioner, was derived from 1969, No. 139 , § 15.

    Former § 5976, relating to property tax rebate trust fund, was derived from 1973, No. 81 , § 6, and amended by 1975, No. 118 , § 99; 1985, No. 242 (Adj. Sess.), § 308; 1989, No. 73 , § 273; 1989, No. 210 (Adj. Sess.), § 289; No. 287 (Adj. Sess.), § 9; 1991, No. 245 (Adj. Sess.), § 283.

    Former § 5977, relating to payments of claims, was derived from 1973, No. 81 , § 7, and amended by 1975, No. 9 ; 1977, No. 113 , § 353; No. 228 (Adj. Sess.), § 5; 1981, No. 108 , § 331(a); 1981, No. 191 (Adj. Sess.), § 6; 1983, No. 9 , § 12; 1985, No. 88 , § 5; 1985, No. 262 (Adj. Sess.), § 2; 1989, No. 73 , § 274; 1989, No. 210 (Adj. Sess.), § 290; No. 287 (Adj. Sess.), § 9; 1991, No. 245 (Adj. Sess.), § 284; 1995, No. 29 , § 36; 1997, No. 50 , § 25.

    Former § 5978, relating to claims based on unpaid property taxes, was derived from 1983, No. 70 , § 3, and amended by 1985, No. 262 (Adj. Sess.), § 2; 1991, No. 186 (Adj. Sess.), § 16; 1995, No. 29 , § 35.

    32 V.S.A. §§ 5961-5967 (added 1969, No. 139 , §§ 1-5, 7-10, 12-15; amended 1971, No. 101 , §§ 1, 3; 1973, No. 81 , §§ 1-7; 1973, No. 193 (Adj. Sess.), § 3; 1975, No. 118 , § 99; 1975, No. 154 (Adj. Sess.), § 15; 1977, No. 113 , § 353; No. 228, § 5; 1981, No. 108 , § 331(a); 1981, No. 191 (Adj. Sess.), §§ 2-6; 1983, No. 9 , § 12; 1983, No. 70 , §§ 1-3; 1985, No. 88 , §§ 3-6a; 1985, No. 242 (Adj. Sess.), § 308; 1985, No. 262 (Adj. Sess.), §§ 1-3; 1987, No. 82 , §§ 7, 10a, eff. June 9, 1987; 1987, No. 84 , §§ 7, 8; 1989, No. 73 , §§ 273, 274; 1989, No. 119 , §§ 24, 25; 1989, No. 125 (Adj. Sess.), § 1; No. 166 (Adj. Sess.), §§ 1, 2; No. 210 (Adj. Sess.), §§ 289, 290; No. 222 (Adj. Sess.), §§ 12, 420; No. 287 (Adj. Sess.), §§ 1-6, 9; 1991, No. 67 , § 23; 1991, No. 186 (Adj. Sess.), §§ 15a, 16; 1991, No. 245 (Adj. Sess.), §§ 283, 284; 1993, No. 31 , § 1; 1995, No. 29 , §§ 30-35, 36; 1995, No. 169 (Adj. Sess.), § 17; 1995, No. 174 (Adj. Sess.), § 7; No. 178 (Adj. Sess.), §§ 44a, 44b; 1997, No. 50 , § 24; 1997, No. 50 , § 25) were repealed by 1997, No. 60 , § 52b, effective January 1, 1999. The delayed effective date of the repeal by that act was amended by 1997, No. 71 (Adj. Sess.), § 20, making the effective date of the repeal January 1, 1998.

    Chapter 154. Homestead Property Tax Credit and Renter Credit

    History

    Amendments

    —2019 (Adj. Sess.) 2019, No. 160 (Adj. Sess.), § 7, effective January 1, 2021, added “and Renter Credit ” in the chapter heading.

    —2019. 2019, No. 51 , § 29, substituted “Property Tax Credit” for “Property Tax Income Sensitivity Adjustment” in the chapter heading.

    Effective date and applicability of 2019 (Adj. Sess.) amendment. 2019, No. 160 (Adj. Sess.), § 9 provides: “This act shall take effect on January 1, 2021 and apply to taxable years beginning on and after January 1, 2021 (claim filing years 2022 and after).”

    § 6061. Definitions.

    Introductory paragraph applicable to taxable years prior to January 1, 2021; see also introductory paragraph applicable to taxable years beginning on or after January 1, 2021 set out below.

    The following definitions shall apply throughout this chapter unless the context requires otherwise:

    Introductory paragraph applicable to taxable years beginning on and after January 1, 2021; see also introductory paragraph applicable to taxable years prior to January 1, 2021 set out above. As used in this chapter unless the context requires otherwise:

    1. Subdivision (1) applicable to taxable years prior to January 1, 2021; see also subdivision (1) applicable to taxable years beginning on or after January 1, 2021 set out below.

      “Property tax credit” means a credit of the prior tax year’s statewide or local share property tax liability or a homestead owner or renter credit, as authorized under section 6066 of this title, as the context requires.

      (1)

      Subdivision (1) applicable to taxable years beginning on and after January 1, 2021; see also subdivision (1) applicable to taxable years prior to January 1, 2021 set out above.

      “Property tax credit” means a credit of the prior tax year’s statewide or local share property tax liability or a homestead owner credit, as authorized under section 6066 of this title, as the context requires.

    2. [Repealed.]
    3. “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. 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 or 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 shall not be considered to be a member of the household.
      1. “Household income” means modified adjusted gross income, but not less than zero, received in a calendar year by: (4) (A) “Household income” means modified adjusted gross income, but not less than zero, received in a calendar year by:
        1. all persons of a household while members of that household; and
        2. 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.
      2. “Household income” does not mean:
        1. 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
        2. 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.
    4. “Modified adjusted gross income” means “federal adjusted gross income”:
      1. 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.
      2. 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.
      3. 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.
      4. 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.
      5. 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.
    5. “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.
    6. Subdivision (7) applicable to taxable years prior to January 1, 2021; see also subdivision (7) applicable to taxable years beginning on and after January 1, 2021 set out below.

      “Allocable rent” means for any housesite and for any taxable year 21 percent of the gross rent. “Gross rent” means the rent actually paid during the taxable year by the individual or other members of the household solely for the right of occupancy of the housesite during the taxable year. “Allocable rent” shall not include payments made under a written homesharing agreement pursuant to a nonprofit homesharing program, or payments for a room in a nursing home in any month for which Medicaid payments have been made on behalf of the claimant to the nursing home for room charges.

      (7) (A)

      Subdivision (7) applicable to taxable years beginning on and after January 1, 2021; see also subdivision (7) applicable to taxable years prior to January 1, 2021 set out above.

      “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.

    7. “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.
    8. “Taxable year” means the calendar year preceding the year in which the claim is filed.
    9. [Repealed.]
    10. “Housesite” means that portion of a homestead, as defined under subdivision 5401(7) of this title but not under subdivision 5401(7)(G), 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, no more than two acres per dwelling unit up to a maximum of 10 acres per parcel.
    11. “Claim year” means the year in which a claim is filed under this chapter.
    12. “Homestead” means a homestead as defined under subdivision 5401(7), 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.
    13. “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.
    14. “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.
    15. “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.
    16. “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 municipality’s common level of appraisal determined by equalization of the grand list for April 1 of the year preceding the taxable year.
    17. Subdivisions (18)-(20) applicable to taxable years beginning on and after January 1, 2021.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:
      1. 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;
      2. exempt interest received or accrued during the taxable year;
      3. 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
      4. 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.
    18. “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.
    19. “Very 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, “very low-income limit” means the average of the very low-income limits for the State as determined by the U.S. Department of Housing and Urban Development.

    HISTORY: 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.

    History

    Revision note

    —2021. In subdiv. (5)(E), substituted “times” for “x” preceding “the sum” for purposes of clarity.

    —2019. Subdivs. (15) and (16): Substituted “property tax credit” for “property tax adjustment” in accordance with 2019, No. 51 , § 33(1).

    —2006. Subdiv. (14) as added by 2005, No. 185 (Adj. Sess.), § 7, was redesignated as subdiv. (16) to avoid conflict with subdiv. (14) as added by 2005, No. 185 (Adj. Sess.), § 1 and to conform to V.S.A. style.

    —2003. 2003, No. 68 , §§ 7 and 9 both purported to add a new subdiv. (11) to this section; however, in order to avoid a conflict, subdiv. (11), as added by § 9 of that act, was redesignated as subdiv. (12).

    Amendments

    —2019 (Adj. Sess.) Substituted “As used in” for “The following definitions shall apply throughout” in the introductory paragraph; deleted “or renter” following “owner” in subdiv. (1); amended subdiv. (7) generally; and added subdivs. (18)-(20).

    —2019. Subdiv. (1): Substituted “Property tax credit” for “Adjustment” and “a credit of the prior tax year’s statewide” for “an adjustment of statewide”.

    Subdiv. (4): Amended generally. su

    Subdiv. (5)(C): Inserted “any income attributable to cancellation of debt;” following “adult child with a disability” in the first sentence. su

    —2015 (Adj. Sess.). Subdiv. (13): Substituted “October 15” for “September 1”.

    —2013 (Adj. Sess.). Subdiv. (5)(C): Substituted “adult child with a disability” for “disabled adult child” following “parent or”, “33 V.S.A. chapters 49 and 55” for “chapters 49 and 55 of Title 33” following “pursuant to”, “a person who is eligible and who has” for “an eligible person with” following “support of”, “has a disability” for “disabled” following “claimant who”, and “him or her” for “the commissioner” following “satisfactory to”.

    —2011 (Adj. Sess.). Subdiv. (5)(A): Added “from a sole proprietorship”, substituted “limited liability company” for “small business”, and added the exception at the end.

    Subdiv. (5)(D): Added “and health savings account deductions” following “individuals,”.

    Subdiv. (5)(E): Added.

    —2011. Subdiv. (5)(D): Deleted ”and” preceding “deductions” and inserted “, and health insurance costs of self-employed individuals” following “fees”.

    —2009 (Adj. Sess.) Subdiv. (4): Section 24 inserted “but not less than zero”.

    Subdiv. (5): Section 23 added subdiv. (D).

    Section 24 added new subdiv. (D) and redesignated former subdiv. (D) as present subdiv. (E).

    Subdiv. (7): Amended generally by Section 24.

    —2007. Subdiv. (5)(C): Act No. 37 deleted “the first $6,500.00 of” preceding “payments” and substituted “adult foster care or to a family for the support of an eligible person with a developmental disability” for “flexible family funding or difficulty of care payments made to an individual for the support of an eligible person with a developmental disability as defined in subdivision 8722(2) of Title 18” in the second sentence.

    Subdiv. (14): Act No. 33 deleted “municipality’s adjusted” preceding “homestead” and substituted “multiplied by the municipality’s education spending adjustment under subdivision 5402(a)(2) of this title and used to calculate” for “for” preceding “taxes”.

    Subdivs. (15), (16): Act No. 65 substituted “adjustment” for “payment” following “property tax”.

    Subdiv. (17): Added by Act No. 33.

    —2005 (Adj. Sess.). Subdiv. (5)(B): Act No. 185, § 13, added “other than gifts, gifts received by the household in excess of a total of $6,500.00 in cash or cash-equivalents” following “money”.

    Subdiv. (5)(C): Amended generally by Act No. 185, § 13.

    Subdiv. (7): Act No. 94 substituted “housesite” for “homestead”.

    Subdiv. (13): Act No. 185, § 7, inserted “but not under subdivision 5401(7)(G)” following “subdivision 5401(7)” and substituted “September 1” for “July 15”.

    Subdiv. (14): Added by Act No. 185, §§ 1 and 7.

    Subdiv. (15): Added by Act No. 185, § 7.

    —2005. Subdiv. (3): Substituted “principal dwelling” for “homestead” in the first sentence.

    Subdiv. (11): Inserted “but not under subdivision 5401(7)(G)”.

    Subdiv. (13): Added.

    —2003 (Adj. Sess.). Subdiv. (2): Repealed.

    Subdiv. (6): Added “or which would have been assessed if the homestead had been properly declared at the time of assessment” to the end of the subdivision.

    Subdiv. (11): Substituted “5401(7)” for “6061(2)” following “subdivision”, deleted “the principal dwelling and” following “includes” and inserted “owned by the claimant” following “land”.

    —2003. Subdiv. (3): Inserted “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 or a” preceding “person” in the second sentence.

    Subdiv. (5): Deleted “the sum of” preceding “federal” and “as defined in section 5811 of this title” following “income”.

    Subdiv. (5)(C): Substituted “$6,500.00” for “$4,000.00” preceding “income” in two places.

    Subdiv. (6): Substituted “housesite” for “homestead” and deleted subdivs. (6)(A) and (B).

    Subdiv. (7): Inserted “payments made under a written homesharing agreement pursuant to a nonprofit homesharing program” in the last sentence.

    Subdiv. (11): Added by Act No. 68, § 7.

    Subdiv. (12): Added by Act. No. 68, § 9.

    ARPA exclusion of unemployment compensation from gross income; tax year 2020. 2021, No. 9 , § 23b provides: “(a) For taxable year 2020 only, 32 V.S.A. § 5824 , adoption of federal income tax laws, shall also adopt 26 U.S.C. § 85(c) as amended by Section 9042 of the American Rescue Plan Act, Pub. L. No. 117-2, pursuant to which the first $10,200.00 of unemployment compensation received is excluded from the gross income of a taxpayer whose taxable year 2020 adjusted gross income is less than $150,000.00.

    “(b) For taxable year 2020 only, notwithstanding 26 U.S.C. § 85(c) as amended by Section 9042 of the American Rescue Plan Act, Pub. L. No. 117-2, the definition of household income pursuant to 32 V.S.A. § 6061(4)(A) and (5) shall include all unemployment compensation received by a taxpayer in taxable year 2020.”

    Retroactive effective date and applicability of 2021, No. 9 , § 23b. 2021, No. 9 , § 33(2) provides: “Secs. 23-23b (annual link to federal statutes) [which applied to household income under 32 V.S.A. § 6061(4)(A) and (5)] shall take effect retroactively on January 1, 2021 and shall apply to taxable years beginning on and after January 1, 2020.”

    Effective date and applicability of 2019 (Adj. Sess.) amendment. 2019, No. 160 (Adj. Sess.), § 9 provides: “This act shall take effect on January 1, 2021 and apply to taxable years beginning on and after January 1, 2021 (claim filing years 2022 and after).”

    Applicability of amendment to subdivs. (5)(A), (5)(D) and (5)(E). 2011, No. 143 (Adj. Sess.), § 63(4) provides that §§ 10, 26, and 31a of that act shall be effective January 1, 2013 and shall apply to property tax adjustments, renter rebate claims, and homestead declarations for 2013 and after.

    Applicability of 2011 amendment to subdiv. (5)(D). 2011, No. 45 , § 37(4) provides: “Sec. 13 [which amended subdiv. (5)(D) this section] (definition of household income) shall take effect on January 1, 2012 and apply to claim year 2012 and after.”

    Applicability of 2009 (Adj. Sess.) amendment. 2009, No. 160 (Adj. Sess.), § 62(5) provides that §§ 23 and 25 [which amended this section and § 6066 of this title] (definition of modified adjusted gross income to include additional interest and dividends; computation of adjustment) shall apply to homestead property tax adjustments claims made in 2010 and after and shall apply to renter rebate claims made in 2011 and after.

    2009, No. 160 (Adj. Sess.), § 62(6) provides that §§ 24 and 26 [which amended this section and § 6069 of this title] (definitions of household income, modified adjusted gross income to include certain federal adjustments, and allocable rent; landlord certificate) shall apply to property tax adjustment and renter rebate claims made in 2011 and after.

    Prospective repeal of subdiv. (5)(E). 2009, No. 160 (Adj. Sess.), § 51(b)(1) provides that subdiv. (5)(E), relating to requiring adjustment for interest and dividend income for purposes of calculating modified adjusted gross income, shall be repealed for claims filed on and after January 1, 2013.

    Retroactive effective date. 2007, No. 37 , § 5(b) provides: “Sec. 4 of this act (abatement of penalties and payment of interest) shall be effective retroactively, as of May 25, 2006.”

    2007, No. 33 amendment. 2007, No. 33 , § 12(3) provides that § 9 of that act, which amends subdivs. (14) and (17) of this section, shall apply to claims filed in 2007 and after.

    2007, No. 65 amendment. 2007, No. 65 , § 299(g) provides in part that § 292 of that act, which amends subdivs. (15) and (16) of this section shall apply to fiscal years 2009 and after.

    2005. 2005, No. 38 , § 22(12), provided that the amendment to subdiv. (11) of this section by § 18 of that act shall apply to homestead declarations related to April 1, 2005, and after.

    Effective date and applicability of 2003 amendments. 2003, No. 68 , § 87(4) provides that §§ 7-14 of that act [§§ 7-9 amend this section], relating to homestead tax adjustments, shall take effect January 1, 2004, and shall apply to claims filed in 2004 and after.

    § 6062. Number and identity of claimants; apportionment.

    1. Subsection (a) applicable to taxable years prior to January 1, 2021; see also subsection (a) applicable to taxable years beginning on and after January 1, 2021 set out below.

      In the case of a renter credit claim based solely on allocable rent, the claimant shall have rented property during the entire taxable year; provided, however, a claimant who owned a homestead that was sold in the taxable year prior to April 1 may file a renter credit claim. If two or more individuals of a household are able to meet the qualifications for a claimant hereunder, they may determine among them who the claimant shall be. Any disagreement under this subsection shall be referred to the Commissioner and his or her decision shall be final.

      (a)

      Subsection (a) applicable to taxable years beginning on and after January 1, 2021; see also subsection (a) applicable to taxable years prior to January 1, 2021 set out above.

      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.

    2. Subsection (b) applicable to taxable years prior to January 1, 2021; see also subsection (b) applicable to taxable years beginning on and after January 1, 2021 set out below.

      Only one claimant per household per year shall be entitled to relief under this chapter.

      (b)

      Subsection (b) applicable to taxable years beginning on and after January 1, 2021; see also subsection (b) applicable to taxable years prior to January 1, 2021 set out above.

      Only one property tax credit claimant per household per year shall be entitled to relief under this chapter.

    3. 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.
    4. 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.
    5. 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.

    HISTORY: 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.

    History

    Amendments

    —2019 (Adj. Sess.) Subsec. (a): Amended generally.

    Subsec. (b): inserted “property tax credit”.

    —2009 (Adj. Sess.) Subsec. (a): Substituted “allocable rent” for “rent constituting property taxes” in the first sentence.

    —2005. Subdiv. (c)(4): Added.

    —2003 (Adj. Sess.). Subdiv. (c)(2): Substituted “housesite” for “homestead”.

    Subsec. (d): Substituted “housesite” for “homestead” in two places and inserted “and housesite” following “homestead” to the end of the subsection.

    —2001 (Adj. Sess.) Subsec. (a): Deleted “that” preceding “a claimant” and substituted “prior to April 1” for “and who does not own another homestead on December 31 of the taxable year”.

    —1999 (Adj. Sess.). Subdiv. (e)(1): Amended generally.

    —1999. Added the phrase beginning “provided, however” at the end of the first sentence in subsec. (a), deleted “actual” preceding “tax” and “paid by the claimant spouse” thereafter and inserted “for which the claimant is responsible” preceding “pursuant to” in subdiv. (c)(2), added subdiv. (c)(3), deleted former subsec. (d), redesignated former subsec. (e) as present subsec. (d), and added present subsec. (e).

    Effective date of amendments—

    2001 (Adj. Sess.) 2001, No. 144 (Adj. Sess.), § 42(5) provides that § 16 of that act [which amends subsec. (a) of this section] shall take effect January 1, 2003 and apply to claims filed in 2003 and after.

    Effective date and applicability of 2019 (Adj. Sess.) amendment. 2019, No. 160 (Adj. Sess.), § 9 provides: “This act shall take effect on January 1, 2021 and apply to taxable years beginning on and after January 1, 2021 (claim filing years 2022 and after).”

    1999 amendment. 1999, No. 49 , § 38(g) provides that the amendment of this section by § 14 of that act as it pertains to subsec. (d) [part-year renter claims] shall apply to claims filed in calendar year 1999 and after.

    1999, No. 49 , § 38(h) provides that the amendment to this section by § 14 of that act as it pertains to subsec. (a) [part-year renter claims], subsec. (c) [former spouse as co-owner], and subsec. (e) [trust as claimant] shall apply to claims filed in calendar year 2000 and after.

    1999 (Adj. Sess.) amendment. 1999, No. 159 (Adj. Sess.), § 36, provided that § 35 of that act, which amended subdiv. (e)(1), shall apply to claims in 2001 and after.

    2005 amendment. 2005, No. 38 , § 22(11) provided that the amendment to this section, by § 15 of that act, shall apply to claims filed for 2006 property taxes and after.

    Transition rule. 2003, No. 76 (Adj. Sess.), § 18, eff. Feb. 17, 2004, provided: “For purposes of an income sensitivity claim, under 32 V.S.A. § 6062(c)(2) , if the court-approved settlement agreement does not specify the tax on the housesite for which the claimant is responsible, then the property tax of the claimant shall be the same proportion of the tax on the housesite as the proportion of the tax on the homestead for which the claimant is responsible pursuant to the court-approved settlement agreement.”

    Statutory revision. 2009, No. 160 (Adj. Sess.), § 27 provides: “The legislative council is directed to revise the Vermont Statutes Annotated to reflect the change in this act from ‘rent constituting property taxes’ to ‘allocable rent.”’

    ANNOTATIONS

    Constitutionality.

    Petitioner failed in argument that subsec. (c) of this section creates an irrebuttable presumption that property taxes are paid in proportion to ownership interest that denies him due process under the Fourteenth Amendment, because household prebates are calculated in proportion to ownership interest, i.e., tax liability, not tax payment; thus, who pays is irrelevant and, as such, petitioner had no procedural claim. Hoffer v. Dep't of Taxes, 2004 VT 86, 177 Vt. 537, 861 A.2d 1085, 2004 Vt. LEXIS 267 (2004).

    Petitioner failed in his argument that subsec. (c) of this section violates the Equal Protection Clause, in particular, by denying unmarried couples the opportunity to show that their actual property tax contribution exceeds their tax liability, because the proportion of property taxes actually paid and the identity of the payer are not factors in determining a claimant’s prebate; the classification is by tax liability not by payment of the tax. Hoffer v. Dep't of Taxes, 2004 VT 86, 177 Vt. 537, 861 A.2d 1085, 2004 Vt. LEXIS 267 (2004).

    Petitioner failed in his argument that subsec. (c) of this section creates arbitrary classifications based on marital status, because the exceptions therein do not classify taxpayers by marital status, but rather address situations when household ownership does not meet the statute’s intended tax liability classification; the exceptions reflect reasonable legislative policy choices and further the State’s legitimate interest in a fair and efficient tax policy. Hoffer v. Dep't of Taxes, 2004 VT 86, 177 Vt. 537, 861 A.2d 1085, 2004 Vt. LEXIS 267 (2004).

    Purpose.

    Because the prebate’s purpose is to limit a property owner’s tax liability to a percentage of the owner’s household income, petitioner failed in his claim that the State’s calculation of his prebate forced him to pay more than two percent of his household income, violating statutory limits imposed by 32 V.S.A. § 6066(a)(1)(B) (ii)(I) and contradicting the remedial purpose of the statute; because petitioner owned a 50 percent interest in his homestead, he was liable to the State for only 50 percent of the taxes associated with the homestead and thus, a prebate reduced by 50 percent satisfied its intended remedial purpose. Hoffer v. Dep't of Taxes, 2004 VT 86, 177 Vt. 537, 861 A.2d 1085, 2004 Vt. LEXIS 267 (2004).

    § 6063. Claim as personal; credit amount at time of transfer.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Revision note

    —2019. Section heading: Substituted “credit” for “adjustment” in accordance with 2019, No. 51 , § 33(2).

    Subsecs. (a) and (b): Substituted “property tax credit” for “property tax adjustment” in accordance with 2019, No. 51 , § 33(1).

    Amendments

    —2007 (Adj. Sess.). Section heading: Added “adjustment amount at time of transfer” to the end; designated the existing provisions of section as subsec. (a) and added subsec. (b).

    —2007. Act No. 65 deleted “escheat” from the section heading and substituted “the property tax adjustment amount shall be credited to the homestead property tax liability of the claimant’s estate, as provided in section 6066a of this title” for “reduction payment may be issued to another member of the household as determined by the commissioner. If the claimant was the only member of the household, the claim shall be paid to the executor or administrator, but if neither is appointed within two years of the filing of the claim, the amount thereof shall escheat to the state”.

    Act No. 81 deleted “escheat” from the section heading and substituted “shall be paid to the town in which the housesite of the deceased is located for credit to the claimant’s estate for property tax liabilities as provided in section 6066a of this title” for “may be issued to another member of the household as determined by the commissioner. If the claimant was the only member of the household, the claim shall be paid to the executor or administrator, but if neither is appointed within two years of the filing of the claim, the amount thereof shall escheat to the state”.

    —2003 (Adj. Sess.). Substituted “If” for “In the case of a renter property tax credit if” at the beginning of the third sentence.

    Application and precedence of 2007, No. 65 , § 293. 2007, No. 65 , § 299(g) provides, in part, that § 293 of that act, which amends this section, shall apply to fiscal years 2009 and after, and shall take precedence over any other amendment to this section in any other act of the General Assembly of 2007.

    § 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.

    HISTORY: Added 1997, No. 60 , § 51, eff. Jan. 1, 1998; amended 2005, No. 185 (Adj. Sess.), § 22.

    History

    Revision note

    —2021. Deleted “amount” following “property tax credit” for purposes of clarity.

    —2019. Substituted “property tax credit” for “property tax adjustment” in accordance with 2019, No. 51 , § 33(1).

    Amendments

    —2005 (Adj. Sess.). Substituted “property tax adjustment amount” for “claim otherwise payable or refund” and inserted “beginning July 1 of the calendar year in which the claim is filed” following “commissioner”.

    § 6065. Forms; tables; notices.

    1. 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.
    2. 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. 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 homestead as defined in subdivision 5401(7) of this title.
    3. 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.

    HISTORY: 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.

    History

    Revision note

    —2019. Subsecs. (a) and (b): Substituted “property tax credit” for “property tax adjustment” in accordance with 2019, No. 51 , § 33(1).

    Subsec. (c): Substituted “credit” for “adjustment” in accordance with 2019, No. 51 , § 33(2).

    Amendments

    —1999. Section amended generally.

    —1997 (Adj. Sess.). Deleted former subsecs. (b) and (c), relating to notices describing the homestead property tax adjustment, deleted the (a) designation from the remaining paragraph, and substituted “and suitable forms for payment by credit card or automatic bank account withdrawal” for “withholding and quarterly installments”.

    § 6066. Computation of property tax credit.

    1. 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. For a claimant with household income of $90,000.00 or more: (1) (A) For a claimant with household income of $90,000.00 or more:
          1. the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year;
          2. minus (if less) the sum of:
            1. the income percentage of household income for the taxable year; plus
            2. the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year in excess of $225,000.00.
        2. 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:
          1. the income percentage of household income for the taxable year; plus
          2. the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year in excess of $400,000.00.
        3. 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:
          1. 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
          2. the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year reduced by $15,000.00.
      1. “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.
      2. 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:

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      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 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:

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      4. 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.
        1. 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.
        2. 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:
        3. If the claimant’s income is greater than the very low-income limit, the claimant shall not be entitled to a renter credit.
        4. 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.
        5. 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.

    2. Subsection (b) applicable to taxable years prior to January 1, 2021; see also subsection (b) applicable to taxable years beginning on and after January 1, 2021 set out below.An eligible claimant who rented the homestead, whose household income does not exceed $47,000.00, and who submits a certificate of allocable rent shall be entitled to a credit against the claimant’s tax liability under chapter 151 of this title equal to the amount by which the allocable rent upon the claimant’s housesite exceeds a percentage of the claimant’s household income for the taxable year as follows:

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      In no event shall the credit exceed the amount of the allocable rent.

      (b) (1) Subsection (b) applicable to taxable years beginning on and after January 1, 2021; see also subsection (b) applicable to taxable years prior to January 1, 2021 set out above. 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:

      1. subtracting the claimant’s income from the very low-income limit;
      2. 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
      3. multiplying the value under subdivision (ii) of this subdivision (1)(B) by 10 percent of fair market rent.
    3. 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. Subdivision (c)(3) applicable to taxable years prior to January 1, 2021; see also subdivision (c)(3) applicable to taxable years beginning on and after January 1, 2021 set out below.

        in the case of a renter, shall have rented property during the entire taxable year.

        (3)

        Subdivision (c)(3) applicable to taxable years beginning on and after January 1, 2021; see also subdivision (c)(3) applicable to taxable years prior to January 1, 2021 set out above.

        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.

    4. Subsection (d) applicable to taxable years prior to January 1, 2021; see also subsection (d) applicable to taxable years beginning on and after January 1, 2021 set out below.

      The owner of a mobile home which 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.

      (d)

      Subsection (d) applicable to taxable years beginning on and after January 1, 2021; see also subsection (d) applicable to taxable years prior to January 1, 2021 set out above.

      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.

    5. 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.
    6. [Repealed.]
    7. 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, for local share property tax, and for statewide property tax.
    8. State property tax reduction incentive. 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 subdivision 6068 of this title.
    9. Adjustments under subsection (a) of this section shall be calculated without regard to any exemption under subdivision 3802(11) of this title.

    If household income (rounded to then the taxpayer is entitled 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

    If household income (rounded to then the taxpayer is entitled 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

    If household income (rounded to then the taxpayer is entitled to the nearest dollar) is: credit for allocable rent paid in excess of this percent of that income: $0.00 — 9,999.00 2.0 $10,000.00 — 24,999.00 4.5 $25,000.00 — 47,000.00 5.0

    HISTORY: 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.

    History

    Revision note

    —2019. Substituted “credit” for “adjustment” in subsecs. (a), (e), and (g) and “credits” for “adjustments” in subsec. (d) in accordance with 2019, No. 51 , § 33(2).

    Substituted “property tax credit” for “property tax adjustment” in subsec. (h) in accordance with 2019, No. 51 , § 33(1).

    —2015. In subdivs. (a)(1) and (2), substituted “income percentage” for “applicable percentage” wherever it appeared throughout the section in accordance with 2015, No. 46 , § 30.

    Editor’s note

    —2015. 2013, No. 174 (Adj. Sess.), § 64 made changes in subdiv. (a)(1)(A)(II) effective January 1, 2016 for fiscal year 2017. 2015, No. 46 , §§ 29 and 30 made changes in subdivs. (a)(1) and (2) effective July 1, 2015 for fiscal year 2017. In order to harmonize these effective dates, subdivs. (a)(1) and (2) are amended to reflect versions in effect for fiscal year 2016 and before, and for 2017 and after.

    Amendments

    —2019 (Adj. Sess.) Amended subsec. (b) and subdiv. (c)(3) generally, and substituted “that” for “which” in subsec. (d).

    —2019. Section heading: Act No. 51 substituted “property tax credit” for “adjustment”. su

    Subsec. (a): Act No. 51 substituted “a credit for the prior year’s homestead property tax liability” for “adjustment” in the introductory language. su

    Subdiv. (a)(5): Acts No. 6 and 51, substituted “under subdivision (4)” for “under subdivisions (3) and (4)” in the second sentence. su

    —2018 (Sp. Sess.). Subdiv. (a)(1)(A)(ii)(II): No. 11, § H. 11, substituted “$225,000.00” for “250,000.00” following “excess of”.

    Subdivs. (a)(1)(B)(ii), (a)(1)(C)(i): No. 11, § H. 11, substituted “$400,000.00” for “500,000.00” following “excess of”.

    Subdiv. (a)(3): Amended generally by No. 11, § H. 11.

    Subdiv. (a)(4): Added by No. 11, § H. 11.

    Subdiv. (a)(5): No. 11, § H. 11, redesignated former subdiv. (a)(4) as (a)(5), inserted “or (4)” following “subdivision (3)”, and added last sentence.

    —2015. Subdiv. (a)(2): Amended generally.

    —2013 (Adj. Sess.). Subdiv. (a)(1)(A)(ii)(II): Substituted “$250,000.00” for “$200,000.00” at the end.

    —2013. Subsec. (b): Deleted “on the last day of the taxable year” after “homestead”.

    Subsec. (c): Substituted “an adjustment or credit” for “a property tax adjustment” in subsec. (c) introductory language; added subdiv. (c)(3).

    —2011 (Adj. Sess.) Subdiv. (a)(1)(B)(ii): Removed sunset above subdivision regarding equalized value of housesite in excess of $500,000.00.

    —2011. Subsec. (i): Added.

    —2009 (Adj. Sess.) Subdiv. (a)(1)(B): Substituted “minus (if less) the sum of” for “minus the applicable percentage of household income for the taxable year” in the introductory paragraph and added subdivs. (i) and (ii).

    Subdiv. (a)(1)(C): Rewrote subdiv. (i).

    Subdiv. (a)(1)(D): Deleted.

    Subdiv. (a)(4): Amended generally.

    Subsecs. (b) and (d): Substituted “allocable rent” for “rent constituting property taxes”.

    —2007 (Adj. Sess.). Subsec. (f): Repealed.

    —2007. Subdiv. (a)(1)(A)(i): Deleted “as adjusted under subdivision 5402(a)(2) of this title” following “tax rate” and inserted “in the taxable year” following “housesite”.

    Subdiv. (a)(1)(A)(ii)(II): Deleted “as adjusted under subdivision 5402(a)(2) of this title” preceding “multiplied”.

    Subdiv. (a)(1)(B): Deleted “as adjusted under subdivision 5402(a)(2) of this title” following “tax rate” and inserted “in the taxable year” following “housesite”.

    Subdiv. (a)(1)(C): Deleted “as adjusted under subdivision 5402(a)(2) of this title” following “tax rate” and inserted “in the taxable year” following “housesite”.

    Subdiv. (a)(1)(C)(ii): Deleted “under subdivision 5402(a)(2) of this title” following “statewide tax rate”.

    —2005 (Adj. Sess.). Subdiv. (a)(3): Substituted “an additional adjustment amount” for “a credit against the claimant’s tax liability under chapter 151 of this title” preceding “equal” and deleted “owned on December 31 of the taxable year” following “housesite”.

    Subsec. (b): Amended generally.

    Subsec. (h): Added.

    —2005. Subdiv. (1)(1): Act No. 38, § 25 substituted “$85,000.00” for “$75,000.00” in subdivs. (A), (B) and (D)” and “$200,000.00” for “$160,000.00” in subdiv. (A)(ii)(II).

    Act No. 38, § 26 substituted “$90,000.00” for “$85,000.00” in subdivs. (A), (B) and (D).

    —2003 (Adj. Sess.). Subsec. (f): Deleted the second sentence.

    Subsec. (g): Amended generally.

    —2003. Subsec. (a): Amended generally.

    Subsec. (b): Substituted “housesite” for “homestead”.

    Subsec. (e): Substituted “the two-acre housesite limitation” for “two acres per homestead” and “two acres per homestead, and without regard to the overall ten-acre limitation of section 5401(7) of this title”, respectively, and substituted “housesite” for “homestead” throughout the subsection.

    —2001 (Adj. Sess.) Subsec. (a): Amended generally.

    —2001. Subdiv. (a)(3): Inserted “for the municipal fiscal year which began in the taxable year” following “property taxes” in the introductory paragraph.

    —1999. Subdiv. (a)(1): Amended generally.

    —1997 (Adj. Sess.). Inserted “adjusted under subdivisions (1) and (2) of this subsection” following “claimant’s homestead” in subdiv. (a)(3) and inserted “whose household income does not exceed $47,000.00” following “last day of taxable year”; inserted “rent constituting” in the second table heading and inserted “$0 — 4,999.00” and “3.5” in the table in subsec. (b); and inserted “rent constituting” following “amount of” in the undesignated paragraph following subsec. (b).

    Subsecs. (d)-(g): Added.

    Effective date and applicability of 2019 (Adj. Sess.) amendment. 2019, No. 160 (Adj. Sess.), § 9 provides: “This act shall take effect on January 1, 2021 and apply to taxable years beginning on and after January 1, 2021 (claim filing years 2022 and after).”

    Retroactive effective date and applicability of 2018 (Sp. Sess.) amendment. 2018, No. 11 (Sp. Sess.), § H.31(a)(4) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. H.11 (calculation of property tax adjustments) [which amended this section] shall take effect retroactively to the taxable year starting on January 1, 2017 and apply to property tax adjustment claims filed for fiscal year 2019 (claim year 2018) and after.”

    Effective date and applicability of 2018 (Sp. Sess.) amendment. 2018, No. 11 (Sp. Sess.), § H.31(a)(5) provides: “Secs. H.12-H.13 (municipal and education super-circuitbreaker and credit limits) [H.12 amended this section and H.13 amended 32 V.S.A. § 6067 ] and H.14-H.15 (property tax bill requirements) [which amended 32 V.S.A. §§ 5402 and 6066a] shall take effect on July 1, 2019 and apply to fiscal year 2020 and after.”

    Effective date and applicability of 2015 amendment to subdiv. (a)(2). 2015, No. 46 , § 52(h) provides that the amendments to this section by that act shall take effect on July 1, 2015 and shall apply to fiscal year 2017 and after.

    Effective date and applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70(19) provides that § 64 (housesite value) [which amended this section] shall take effect on January 1, 2016 and apply to claims filed after that date for fiscal year 2017 and after.

    Applicability of 2011 amendment. 2011, No. 45 , § 37(3) provides: “Sec. 11 [which amended 32 V.S.A. 5410] (changes to homestead declaration penalty) and Sec. 13b [which amended this section] (veteran’s exemption adjustment) shall apply to property tax adjustment claims make in 2011 and after.”

    Applicability of 2009 (Adj. Sess.) amendment. 2009, No. 160 (Adj. Sess.), § 62(5) provides that §§ 23 and 25 [which amended § 6061 of this title] (definition of modified adjusted gross income to include additional interest and dividends; computation of adjustment) shall apply to homestead property tax adjustments claims made in 2010 and after and shall apply to renter rebate claims made in 2011 and after.

    2007 amendment. 2007, No. 33 , § 12(3) provides that § 10 of that act, which amended this section, shall apply to claims filed in 2007 and after.

    Effective date and applicability of 2003 amendments. 2003, No. 68 , § 87(4) provides that §§ 7-14 of that act [§ 10 amends this section], relating to homestead tax adjustments, shall take effect January 1, 2004, and shall apply to claims filed in 2004 and after.

    Effective date of amendments—

    2001 (Adj. Sess.) 2001, No. 144 (Adj. Sess.), § 42(5), provides that § 17 of that act [which amends subsec. (a) of this section] shall take effect January 1, 2003 and apply to claims filed in 2003 and after.

    Effective date of amendments—

    2001 amendment. 2001, No. 63 , § 283(c), provided in part that the amendment to this section by § 163c of that act shall take effect for fiscal years 2004 and thereafter.

    1999. 1999, No. 49 , § 38(f) provides that the amendment to this section by § 11 of that act (adjustment rules for $75,000.00 or more, and for less than $75,000.00) shall apply to claims made in calendar year 2000 and after.

    Effective date of amendments—

    1997 (Adj. Sess.). 1997, No. 60 , § 100(h), as amended by 1997, No. 71 (Adj. Sess.), § 20, makes this section effective January 1, 1998, except that subsec. (b) takes effect January 1, 1999.

    1997, No. 71 (Adj. Sess.), § 123(a), provided that the amendment by § 16 of that act to subsecs. (a) through (d) and (f) will take effect January 1, 1998, and the amendment to subsecs. (e) and (g) will take effect January 1, 1999.

    ANNOTATIONS

    Constitutionality.

    Provision of former § 6067(b) of this title, limiting the statewide property tax on homestead property to 2% of income for taxpayers with household incomes under $75,000 per year, was not unconstitutional under the Proportional Contribution Clause of Vt. Const., art. 9, Ch. I. Schievella v. Department of Taxes, 171 Vt. 591, 765 A.2d 479, 2000 Vt. LEXIS 310 (2000) (mem.).

    Cited.

    Cited in Hoffer v. Dep't of Taxes, 2004 VT 86, 177 Vt. 537, 861 A.2d 1085, 2004 Vt. LEXIS 267 (2004).

    § 6066a. Determination of property tax credit.

    1. 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.
    2. 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.
    3. 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.
    4. For late claims filed after April 15, the property tax credit amount shall be reduced by $15.00.
    5. 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.
      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. 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. (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. 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.
    6. 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.

    HISTORY: 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. 1 60 (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.

    History

    Revision note

    —2019. Substituted “property tax credit” for “property tax adjustment” in subsecs. (b), (d)-(f) and (g) in accordance with 2019, No. 51 , § 33(1).

    Substituted “credit” for “adjustment” in subsecs. (c), (e) and subdivs. (f)(3) and (4) in accordance with 2019, No. 51 , § 33(2).

    —2003 (Adj. Sess.) 2003, Act 70 (Adj. Sess.), § 49, eff. March 1, 2004, amended subsec. (a) of former 6066a, but the amendment was implemented to the current version of § 6066a in effect when Act 70 became law.

    Amendments

    —2019. Section heading: Substituted “Credits” for “Adjustments”.

    Subsec. (a): Substituted “tax credit” for “tax adjustment” in the first through third sentences, added “based on the prior taxable year’s income and crediting property taxes paid in the prior year” following “claimant” in the first sentence and “on a monthly basis” for “on July 1 for timely filed claims and on November 1 for late claims filed by October 15” in the second sentence.

    Subsec. (f): Act No. 14 deleted the introductory language.

    Subsec. (f): Act No. 51 deleted the subsection heading and inserted “or before” preceding “July 1” in the first sentence, deleted “November 1” preceding “notice sent by the Commissioner”, substitute “the” for “such” preceding “corrected new bill” in the third sentence.

    Subsec. (g): Amended generally.

    —2018 (Sp. Sess.). Subdiv. (f)(1): Added the present second sentence and substituted “the” for “such” preceding “corrected” in the fourth sentence.

    —2013 (Adj. Sess.). Subdiv. (f)(1): Added the third and fourth sentences.

    Subdiv. (f)(2): Deleted “on or” following “receive notice”.

    —2011 (Adj. Sess.). Substituted “November 1” for “September 15” in subsecs. (a), (c), (g) and subdiv. (f)(2), “October 15” for “September 1” in subsec. (a), and inserted “taxpayers and” preceding “amounts” and substituted “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” for “shall include on the homestead property tax bill notice to the taxpayer of the total amount” in the first sentence of subdiv. (f)(1).

    —2009 (Adj. Sess.) Subdiv. (f)(4): Inserted “of the adjustment amount” following “notification” and substituted “taxes” for “education” following “commissioner of”.

    —2009. Substituted “September 15” for “December 31” in subsec. (c) and substituted “(e)” for “(b)” in subdiv. (f)(4) to correct a typographical error.

    —2007 (Adj. Sess.). Added proviso at the end of subsec. (c); deleted “which shall be paid by the commissioner to the municipality for the cost of issuing new property tax bill claimant” at the end of subsec. (d); and amended subsec. (f) generally.

    —2007. Section heading: Substituted “Determination” for “Payment”.

    Subsec. (a): Substituted “determine” for “pay” following “shall”; deleted “determined” following “amount” in the first sentence; and substituted “commissioner shall notify” for “payment shall be made to” preceding “the municipality” and “of the amount of the property tax adjustment for” for “for the credit to” following “located” in the second sentence.

    Subsec. (b): Substituted “include in the total property tax adjustment amount determined under subsection (a) of this section” for “also pay to the municipality”.

    Subsec. (c): Substituted “The commissioner shall notify the municipality of any claim” for “Claim” and deleted “shall be paid to the municipality” following “September 15”.

    Subsec. (e): Substituted “notice” for “payment” and “allocated to payment” for “paid to the town”.

    Subdiv. (f)(1): Substituted “stated in the notice to towns” for “paid to municipalities”.

    Subdiv. (f)(2): Inserted “property tax adjustment” preceding “amounts”; substituted “for which” for “paid to” preceding “municipalities” and inserted “receive notice” following “municipalities”.

    Subdiv. (f)(3): Amended generally.

    Subsec. (g): Added.

    —2005 (Adj. Sess.). Section amended generally.

    —2003 (Adj. Sess.). Subsec. (a): Added the third sentence.

    —2001 (Adj. Sess.) In the first sentence, substituted “property tax adjustment amount” for “excess, if any, of the statewide and local share property tax on the homestead for the fiscal year beginning in the calendar year in which the claim is filed over the adjusted property tax of the claimant for the fiscal year, as” preceding “determined under” and substituted “subdivisions” for “section” thereafter.

    —2001. Section amended generally.

    Effective date and applicability of 2018 (Sp. Sess.) amendment. 2018, No. 11 (Sp. Sess.), § H.31(a)(5) provides: “Secs. H.12-H.13 (municipal and education super-circuitbreaker and credit limits) [which amended 32 V.S.A. §§ 6066 and 6067] and H.14-H.15 (property tax bill requirements) [which amended this section and 32 V.S.A. § 5402 ] shall take effect on July 1, 2019 and apply to fiscal year 2020 and after.”

    Applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70(5) provides that §§ 17 (corrected tax bills due to late filing of declaration) [which amended 32 V.S.A. § 5410(g) of this section], 18 (last date for filing declaration) [which amended 32 V.S.A. § 5410(i) ], and 19 (corrected tax bills due to late filing of property tax adjustment claim) [which amended subsec. (f) of this section] shall take effect on July 1, 2014 and apply to property appearing on grand lists lodged in 2014 and after.

    Applicability of amendment to subsecs. (a), (c), and (g) and subdiv. (f)(2). 2011, No. 143 (Adj. Sess.), § 63(4) provides that § 27 of that act shall be effective January 1, 2013 and shall apply to property tax adjustments, renter rebate claims, and homestead declarations for 2013 and after.

    Applicability of 2009 amendments to subsec. (c) and subdiv. (f)(4). 2009, No. 1 (Sp. Sess.), § H.58(6) provides that § H.29 [which amended subsec. (c) and subdiv. (f)(4) of this section] shall apply to homestead declarations filed in 2009 and after.

    Applicability of 2007 (Adj. Sess.) amendment to subsec. (d). 2007, No. 190 (Adj. Sess.), § 102(4), provides: “Sec. 15 [which amended subsec. (d)] (commissioner does not pay $15.00 late fee to town) shall apply to claims filed in 2008 and after.”

    Applicability of 2007 (Adj. Sess.) amendment to subsec. (f). 2007, No. 190 (Adj. Sess.), § 102(5), provides: “Sec. 16 [which amended subsec. (f)] (property tax adjustments allocated to property tax installments) shall apply to property taxes for fiscal years 2009 and after.”

    Applicability— 2007, No. 65 , § 291. 2007, No. 65 , § 299(g) provides, in part, that § 291 of that act, which amends this section, shall apply to fiscal years 2009 and after.

    Effective date of amendments—

    2001 (Adj. Sess.) 2001, No. 144 (Adj. Sess.), § 42(5) provides that § 18 of that act [which amends this section] shall take effect January 1, 2003 and apply to claims filed in 2003 and after.

    Effective date of amendments—

    2001 amendment. 2001, No. 63 , § 283(c) provided in part that the amendment to this section by § 163d of that act shall take effect for fiscal years 2004 and thereafter.

    Applicability of enactment.

    Applicability of enactment. 1999, No. 49 , § 38(p) provided that the provisions of subsec. (a) of this section, shall take effect January 1, 2000.

    1999, No. 49 , § 38(q) provided that the provisions of subsec. (b) of this section, shall take effect January 1, 2001.

    ANNOTATIONS

    Generally.

    Tax adjustment statute requires the Commissioner of Taxes to transfer the HS-122 State property tax adjustment report to municipalities; thus, town employees, as the recipients of the return information, are subject to the confidentiality requirements of the statute regarding the confidentiality of tax records. They are therefore prohibited by law from disclosing the requested information. In re HS-122, 2011 VT 138, 191 Vt. 562, 38 A.3d 1163, 2011 Vt. LEXIS 137 (2011) (mem.).

    § 6067. Credit limitations.

    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.

    HISTORY: 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.

    History

    Revision note

    —2019. Substituted “credit” for “adjustment” in three places in accordance with 2019, No. 51 , § 33(2).

    Amendments

    —2019 (Adj. Sess.) Section amended generally.

    —2018 (Sp. Sess.). Generally amended the fourth sentence.

    —2011 (Adj. Sess.). Added the third sentence.

    —2007. Substituted “$8,000.00” for “$10,000.00” in the third sentence.

    —2005 (Adj. Sess.). Added the second sentence.

    —1999. Deleted the subsec. (a) designation at the beginning of the section and deleted subsec. (b).

    Effective date and applicability of 2019 (Adj. Sess.) amendment. 2019, No. 160 (Adj. Sess.), § 9 provides: “This act shall take effect on January 1, 2021 and apply to taxable years beginning on and after January 1, 2021 (claim filing years 2022 and after).”

    Effective date and applicability of 2018 (Sp. Sess.) amendment. 2018, No. 11 (Sp. Sess.), § H.31(a)(5) provides: “Secs. H.12-H.13 (municipal and education super-circuitbreaker and credit limits) [which amended this section and 32 V.S.A. § 6066 ] and H.14-H.15 (property tax bill requirements) [which amended 32 V.S.A. §§ 5402 and 6066a] shall take effect on July 1, 2019 and apply to fiscal year 2020 and after.”

    Effective date and applicability of 2011 (Adj. Sess.) amendment of section. 2011, No. 143 (Adj. Sess.), § 63(4) provides that § 30 of that act [which amended this section] shall be effective January 1, 2013 and shall apply to property tax adjustments, renter rebate claims, and homestead declarations for 2013 and after.

    2007 amendment. 2007, No. 82 , § 3 provides: “Sec. 2 of this act [which amends this section] ($8,000.00 cap on property tax adjustment) shall apply to claims filed in 2008 and after.”

    Applicability and sunset of 2005 (Adj. Sess.) amendment. 2005, No. 185 (Adj. Sess.), § 17(2) provides: “The provisions of Sec. 9 [which amends this section], relating to a homestead declaration in another state, shall apply to claims filed in 2007 and after; and the provisions of Sec. 9, related to a $10,000.00 cap on property tax adjustment, shall apply to claims filed in 2007 and 2008 and shall sunset January 1, 2009.”

    1999 amendment. 1999, No. 49 , § 38(e) provides that the amendment to this section by § 10 of that act (removal of $75,000 cap) shall apply to claims filed in calendar year 2000 and after.

    § 6068. Application and time for filing.

    1. Subsection (a) applicable to taxable years prior to January 1, 2021; see also subsection (a) applicable to taxable years beginning on and after January 1, 2021 set out below.

      A 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 rebate claim shall be filed with the Commissioner on or before the due date for filing the Vermont income tax return, without extension.

      (a)

      Subsection (a) applicable to taxable years beginning on and after January 1, 2021; see also subsection (a) applicable to taxable years prior to January 1, 2021 set out above.

      A 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.

    2. If the claimant fails to file a timely claim, the amount of the property tax credit under this chapter shall be reduced by $15.00, but not below $0.00, which shall be paid to the municipality for the cost of issuing an adjusted homestead property tax bill. No benefit shall be allowed in the calendar year unless the claim is filed with the Commissioner on or before October 15.
    3. Subsection (c) applicable to taxable years prior to January 1, 2021; see also subsection (c) applicable to taxable years beginning on and after January 1, 2021 set out below.

      No request for allocation of an income tax refund or for a renter rebate claim may be made after October 15.

      (c)

      Subsection (c) applicable to taxable years beginning on and after January 1, 2021; see also subsection (c) applicable to taxable years prior to January 1, 2021 set out above.

      No request for allocation of an income tax refund or for a renter credit claim may be made after October 15.

    HISTORY: 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.

    History

    Revision note

    —2019. Subsec. (a): Substituted “credit” for “adjustment” in two places in accordance with 2019, No. 51 , § 33(2).

    Subsec. (b): Substituted “property tax credit” for “property tax adjustment” in accordance with 2019, No. 51 , § 33(1).

    Amendments

    —2019 (Adj. Sess.) 2019, No. 160 (Adj. Sess.), § 6 substituted “renter credit” for “renter rebate” in subsecs. (a) and (c).

    2019, No. 131 (Adj. Sess.), § 295 deleted the subsec. (b) heading.

    —2011 (Adj. Sess.). Added the last sentence in subsec. (a); substituted “October 15” for “September 1” at the end of subsecs. (b) and (c); and added “or for a renter rebate claim” in subsec. (c).

    —2007. Subsec. (a): Substituted “the school parcel account number prescribed in subsection 5404(b) of this title” for “a parcel identification number if the town has assigned one”.

    —2005 (Adj. Sess.). Section amended generally.

    —2001 (Adj. Sess.) Subsec. (b): Amended generally.

    —1997 (Adj. Sess.). Substituted “with” for “without” preceding “extension” at the end of subsec. (b) and deleted subsec. (c) pertaining to the commissioner extending the claim filing date upon request of the claimant.

    Effective date and applicability of 2019 (Adj. Sess.) amendments. 2019, No. 160 (Adj. Sess.), § 9 provides: “This act shall take effect on January 1, 2021 and apply to taxable years beginning on and after January 1, 2021 (claim filing years 2022 and after).” 2019, No. 131 (Adj. Sess.), § 295 [which amended this section] shall take effect on passage (July 1, 2020).

    2001 (Adj. Sess.) 2001, No. 144 (Adj. Sess.), § 40(6) provides that § 19 of that act [which amends subsec. (b) of this section] shall apply to claims filed in 2002 and after.

    Applicability of 2011 (Adj. Sess.) amendment to section. 2011, No. 143 (Adj. Sess.), § 63(4) provides that § 29 of that act shall be effective January 1, 2013 and shall apply to property tax adjustments, renter rebate claims, and homestead declarations for 2013 and after.

    § 6069. Landlord certificate.

    1. 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, for local share property tax, and for statewide property tax.
    2. Subsection (b) applicable to taxable years prior to January 1, 2021; see also subsection (b) taxable years beginning on and after January 1, 2021 set out below.

      The owner of each rental property consisting of more than one rented homestead shall, on or before January 31 of each year, furnish a certificate of rent to the Department of Taxes and to each person who rented a homestead from the owner at any time during the preceding calendar year. All other owners of rented homestead units shall furnish such certificate upon request of the renter. If a renter moves prior to December 31, the owner may either provide the certificate to the renter at the time of moving or mail the certificate to the forwarding address if one has been provided by the renter or in the absence of a forwarding address, to the last known address.

      (b)

      Subsection (b) taxable years beginning on and after January 1, 2021; see also subsection (b) applicable to taxable years prior to January 1, 2021 set out above.

      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.

    3. Subsection (c) applicable to taxable years prior to January 1, 2021; see also subsection (c) applicable to taxable years beginning on and after January 1, 2021 set out below.

      A certificate under this section shall be in a form prescribed by the Commissioner and shall include the name of the renter, the address and any property tax parcel identification number of the homestead, notice of the requirements for eligibility for the property tax credit provided by this chapter, and any additional information that the Commissioner determines is appropriate.

      (c)

      Subsection (c) applicable to taxable years beginning on and after January 1, 2021; see also subsection (c) applicable to taxable years prior to January 1, 2021 set out above.

      A certificate under this section shall be in a form prescribed by the Commissioner and shall include the name of the renter, the address and any property tax parcel identification number of the homestead, the information required under subsection (f) of this section, and any additional information that the Commissioner determines is appropriate.

      1. Subsection (d) applicable to taxable years prior to January 1, 2021; see also subsection (d) applicable to taxable years beginning on and after January 1, 2021 set out below.An owner who knowingly fails to furnish a certificate to the Department or a renter as required by this section shall be liable to the Commissioner for a penalty of $200.00 for each failure to act. An owner shall be liable to the Commissioner for a penalty equal to the greater of $200.00 or the excess amount reported who: (d) (1) Subsection (d) applicable to taxable years prior to January 1, 2021; see also subsection (d) applicable to taxable years beginning on and after January 1, 2021 set out below.An owner who knowingly fails to furnish a certificate to the Department or a renter as required by this section shall be liable to the Commissioner for a penalty of $200.00 for each failure to act. An owner shall be liable to the Commissioner for a penalty equal to the greater of $200.00 or the excess amount reported who:
        1. willfully furnishes a certificate that reports total allocable rent in excess of the actual amount paid; or
        2. reports a total amount of allocable rent that exceeds by 10 percent or more the actual amount paid.
      2. Penalties under this subsection shall be assessed and collected in the manner provided in chapter 151 for the assessment and collection of the income tax.

        (d)

        Subsection (d) applicable to taxable years beginning on and after January 1, 2021; see also subsection (d) applicable to taxable years prior to January 1, 2021 set out above.

        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 for the assessment and collection of the income tax.

    4. Subsection (e) applicable to taxable years prior to January 1, 2021; see also subsection (e) applicable to taxable years beginning on and after January 1, 2021 set out below.

      Failure to receive a rent certificate shall not disqualify a renter from the benefits provided by this chapter.

      (e)

      Subsection (e) applicable to taxable years beginning on and after January 1, 2021; see also subsection (e) applicable to taxable years prior to January 1, 2021 set out above.

      [Repealed.]

    5. Annually, on or before October 31, the Department shall prepare and make available to a member of the public upon request a database in the form of a sortable spreadsheet that contains the following information for each rental unit for which the Department received a certificate pursuant to this section:
      1. name of owner or landlord;
      2. mailing address of landlord;
      3. location of rental unit;
      4. type of rental unit;
      5. number of units in building; and
      6. School Property Account Number.

    HISTORY: 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.

    History

    Revision note

    —2019. Subsec. (c): Substituted “property tax credit” for “property tax adjustment” in accordance with 2019, No. 51 , § 33(1).

    Amendments

    —2019 (Adj. Sess.) Subsec. (b): Amended generally.

    Subsec. (c): Substituted “the information required under subsection (f) of this section” for “notice of the requirements for eligibility for the property tax credit provided by this chapter”.

    Subsec. (d): Amended generally.

    Subsec. (e): Repealed.

    —2017 (Adj. Sess.). Subsec. (f): Added.

    —2015 (Adj. Sess.). Subsec. (a): Inserted “the Department of Taxes and to” following “certificate of rent to” and substituted “On or before January 31” for “By January 21” at the beginning.

    Subsec. (b): Inserted “the Department of Taxes and to” following “certificate of rent to” and substituted “on or before January 31” for “not later than January 21” in the first sentence.

    Subdiv. (d)(1): Inserted “the Department or” following “furnish a certificate to” in the first sentence.

    —2009 (Adj. Sess.) Section amended generally.

    Effective date and applicability of 2019 (Adj. Sess.) amendment. 2019, No. 160 (Adj. Sess.), § 9 provides: “This act shall take effect on January 1, 2021 and apply to taxable years beginning on and after January 1, 2021 (claim filing years 2022 and after).”

    Applicability of 2009 (Adj. Sess.) amendments. 2009, No. 160 (Adj. Sess.), § 62(6) provides that §§ 24 and 26 [which amended this section and § 6061 of this title] (definitions of household income, modified adjusted gross income to include certain federal adjustments, and allocable rent; landlord certificate) shall apply to property tax adjustment and renter rebate claims made in 2011 and after.

    § 6070. Disallowed claims.

    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.

    HISTORY: Added 1997, No. 60 , § 51, eff. Jan. 1, 1998.

    § 6071. Excessive and fraudulent claims.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 1997, No. 60 , § 51, eff. Jan. 1, 1998; amended 2007, No. 190 (Adj. Sess.), § 45.

    History

    Revision note

    —2019. Subsec. (b): Substituted “credit” for “adjustment” in accordance with 2019, No. 51 , § 33(2).

    Amendments

    —2007 (Adj. Sess.). Subsec. (b): Inserted “or, in the case of adjustment of a property tax bill under section 6066a of this title, from December 1 of the year in which the claim is filed” near the end.

    Applicability of 2007 (Adj. Sess.) amendment. 2007, No. 190 (Adj. Sess.), § 102(12) provides: “Sec. 45 [which amended subsec. (b) of this section] of this act (interest due on repayment of an excessive property tax adjustment) shall apply to property tax adjustment claims filed in 2008 and after.”

    § 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.

    HISTORY: Added 1997, No. 60 , § 51, eff. Jan. 1, 1998; amended 2003, No. 70 (Adj. Sess.), § 50, eff. March 1, 2004.

    History

    Amendments

    —2003 (Adj. Sess.). Added the second and third sentences.

    § 6073. Regulations of the Commissioner.

    The Commissioner may, from time to time, issue, amend and withdraw regulations interpreting and implementing this chapter.

    HISTORY: Added 1997, No. 60 , § 51, eff. Jan. 1, 1998.

    § 6074. Amendment of certain claims.

    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.

    HISTORY: 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.

    History

    Amendments

    —2021. Inserted “with regard to housesite value, housesite education tax, housesite municipal tax, and ownership percentage, or”.

    —2011 (Adj. Sess.). Substituted “October 15” for “September 1”.

    —2007. Substituted “6068(a)” for “6068(b)” following “subsection”; deleted “timely” preceding “filed” and inserted “by September 1” following “claim”.

    Applicability of 2011 (Adj. Sess.) amendment to section. 2011, No. 143 (Adj. Sess.), § 63(4) provides that § 28 of that act [which amended this section] shall be effective January 1, 2013 and shall apply to property tax adjustments, renter rebate claims, and homestead declarations for 2013 and after.

    § 6075. Repealed. 2013, No. 179 (Adj. Sess.), § D.105(b), eff. July 1, 2017.

    History

    Former § 6075. Former § 6075, relating to the Supplementary Property Tax Relief Fund, was derived from 2011, No. 162 (Adj. Sess.), § D.103 and amended by 2013, No. 95 (Adj. Sess.), § 83.

    § 6075a. Repealed. 2019, No. 72, § E.500.

    History

    Former § 6075a. Former § 6075a, relating to Education Financial Systems Fund, was derived from 2017, No. 87 (Adj. Sess.), § 39.

    Part 4. Inheritance, Transfer, and Estate Taxes

    Chapter 181. Inheritance Taxes

    §§ 6501-6592. Repealed.

    History

    Former §§ 6501-6952. Former §§ 6501-6952, relating to inheritance, transfer, and estate taxes, were derived from 1957, No. 75 , §§ 1, 2; 1955, No 175: V.S. 1947, §§ 1052, 1056-1119, 1127, and amended by 1959, No. 328 (Adj. Sess.), § 8(b); 1965, No. 172 ; 1971, No. 185 (Adj. Sess.), §§ 227, 228. They were repealed in view of 1969, No. 269 (Adj. Sess.), § 2, which provided that they would be of no force or effect in the case of decedents dying after December 31, 1970. Current provisions relating to estate and gift taxes are set out in chapter 190 of this title.

    Chapter 183. Additional Estate Tax

    §§ 7001-7005. Repealed.

    History

    Former §§ 7001-7005. Former §§ 7001-7005, relating to additional estate taxes, were derived from 1949, No. 29 , §§ 1-3; V.S. 1947, §§ 1123, 1126, and amended by 1959, No. 247 , §§ 2, 3. They were repealed in view of 1969, No. 269 (Adj. Sess.), § 2, which provided that they would be of no force or effect in the case of decedents dying after December 31, 1970. Current provisions relating to estate and gift taxes are set out in chapter 190 of this title.

    Chapter 185. Interstate Arbitration of Death Taxes

    History

    V.S. 1947, § 1139, derived from 1947, No. 22 , § 13, provided that this chapter may be cited as the Uniform Act on Interstate Arbitration of Death Taxes.

    CROSS REFERENCES

    Interstate compromise of death taxes, see chapter 187 of this title.

    § 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.

    History

    Source.

    V.S. 1947, § 1128. 1947, No. 22 , §§ 10, 11.

    § 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.

    History

    Source.

    V.S. 1947, § 1129. 1947, No. 22 , § 1.

    § 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.

    History

    Source.

    V.S. 1947, § 1130. 1947, No. 22 , § 2.

    § 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.

    HISTORY: Amended 1983, No. 230 (Adj. Sess.), § 15.

    History

    Source.

    V.S. 1947, § 1131. 1947, No. 22 , § 3.

    Amendments

    —1983 (Adj. Sess.). Deleted the former third sentence.

    CROSS REFERENCES

    Enforcement of subpoenas issued by administrative agencies generally, see 3 V.S.A. § 809a .

    Modification of subpoenas or discovery orders issued by administrative agencies, see 3 V.S.A. § 809b .

    § 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.

    History

    Source.

    V.S. 1947, § 1132. 1947, No. 22 , § 4.

    § 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.

    History

    Source.

    V.S. 1947, § 1133. 1947, No. 22 , § 5.

    § 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.

    History

    Source.

    V.S. 1947, § 1134. 1947, No. 22 , § 6.

    § 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.

    History

    Source.

    V.S. 1947, § 1135. 1947, No. 22 , § 7.

    § 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.

    HISTORY: Amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.

    History

    Source.

    V.S. 1947, § 1136. 1947, No. 22 , § 8.

    Amendments

    —2009 (Adj. Sess.) Substituted “probate division of the superior court” for “probate court” in the first sentence.

    § 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.

    History

    Source.

    V.S. 1947, § 1137. 1947, No. 22 , § 9.

    § 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.

    History

    Source.

    V.S. 1947, § 1138. 1947, No. 22 , § 12.

    Chapter 187. Interstate Compromise of Death Taxes

    History

    V.S. 1947, § 1143, derived from 1947, No. 23 , § 5, provided that this chapter may be cited as the Uniform Act on Interstate Compromise of Death Taxes.

    CROSS REFERENCES

    Interstate arbitration of death taxes, see chapter 185 of this title.

    § 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.

    History

    Source.

    V.S. 1947, § 1140. 1947, No. 23 , §§ 2, 3.

    § 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.

    History

    Source.

    V.S. 1947, § 1141. 1947, No. 23 , § 1.

    § 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.

    History

    Source.

    V.S. 1947, § 1142. 1947, No. 23 , § 4.

    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.

    HISTORY: 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.

    HISTORY: Added 1975, No. 240 (Adj. Sess.), § 11.

    ANNOTATIONS

    Will provisions.

    Where will provided that each of two daughters taking under it pay the portion of the estate taxes chargeable to the bequest received by her, and one daughter received only $1246 worth of personal property and had advanced to the estate $1500 to meet expenses of and claims against the estate, she was entitled to a return of her advance, less her proportionate share of taxes. In re Estate of Holbrook, 138 Vt. 597, 420 A.2d 110, 1980 Vt. LEXIS 1373 (1980).

    § 7303. Procedure for determining apportionment.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.

    HISTORY: Added 1975, No. 240 (Adj. Sess.), § 11; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. February 1, 2011.

    History

    Amendments

    —2009 (Adj. Sess.) Substituted “probate division of the superior court” for “probate court” wherever it appeared throughout the section.

    § 7304. Method of proration.

    1. 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.
    2. 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.

    HISTORY: Added 1975, No. 240 (Adj. Sess.), § 11; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.

    History

    Amendments

    —2009 (Adj. Sess.) Substituted “probate division of the superior court” for “probate court” in subsec. (b).

    § 7305. Allowance for exemptions, deductions, and credits.

    1. 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.
    2. 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.
    3. Any deduction for property previously taxed and any credit for gift taxes or death taxes of a foreign country paid by the decedent or his or her estate shall inure to the proportionate benefit of all persons liable to apportionment.
    4. 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.
    5. 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 Section 2053(d) of the Internal Revenue Code of 1986 of the United States as amended, relating to deductions for State death taxes on transfers for public, charitable, or religious uses.

    HISTORY: Added 1975, No. 240 (Adj. Sess.), § 11.

    History

    References in text.

    Section 2053(d) of the Internal Revenue Code of 1986, referred to in subsec. (e), is codified as 26 U.S.C. § 2053(d) .

    Revision note—

    In subsec. (e), substituted “the Internal Revenue Code of 1986” for “the Internal Revenue Code of 1954” to conform reference to redesignation of the Code pursuant to section (2)(a) of P.L. 99-514.

    § 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.

    HISTORY: 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.

    HISTORY: 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 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 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.

    HISTORY: Added 1975, No. 240 (Adj. Sess.), § 11.

    History

    Revision note—

    Comma added to the section heading for purpose of clarity. It thus conforms to the Uniform Law.

    § 7309. Short title.

    This chapter may be cited as the Uniform Estate Tax Apportionment Act.

    HISTORY: Added 1975, No. 240 (Adj. Sess.), § 11.

    Chapter 190. Estate and Gift Taxes

    Subchapter 1. Purpose; Definitions

    § 7401. Purpose.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    References in text.

    The estate and gift tax provisions of the U.S. Internal Revenue Code, referred to in subsec. (a), are codified as 26 U.S.C. § 2001, et seq.

    The Economic Growth and Tax Relief Reconciliation Act of 2001 (June 7, 2001, P.L. 107-16), referred to in subsec. (a), is noted under 26 U.S.C. § 1.

    Amendments

    —2001 (Adj. Sess.) Subsec. (a): Inserted “notwithstanding the provisions of section 7442a of this title, the actual” preceding “federal credit”, substituted “the Economic Growth and Tax Relief Act of 2001” for “this chapter” at the end of the second sentence, and added the third sentence.

    —1999 (Adj. Sess.). Subsec. (a): Substituted “Vermont estate tax” for “Vermont inheritance tax” in the first sentence and added the second sentence.

    Applicability of 2002 amendment. 2001, No. 140 (Adj. Sess.), § 43(3) provides that § 17 of that act [which amended this section] shall apply to estates of decedents with a date of death on or after January 1, 2002.

    1999 (Adj. Sess.). 1999, No. 91 (Adj. Sess.), § 41, contained a severability provision applicable to this section.

    1969, No. 269 (Adj. Sess.), § 3, provided: “This act [which added this chapter] shall be effective in the case of gifts made on or after January 1, 1971 and in the case of decedents dying on or after January 1, 1971.”

    § 7402. Definitions.

    The following definitions shall apply throughout this chapter unless the context requires otherwise:

    1. “Commissioner” means the Commissioner of Taxes appointed under section 3101 of this title.
    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.
    8. Subdivision (8) shall apply to taxable years on and after January 1, 2020.

      “Laws of the United States” means the U.S. Internal Revenue Code of 1986, as amended through December 31, 2020. 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 Section 2031 of the Internal Revenue Code, excluding the value of property that has its situs outside Vermont.
    14. “Vermont taxable estate” means the federal taxable estate as provided under Section 2051 of the Internal Revenue Code, without regard to whether the estate is subject to the federal estate tax:
      1. Increased by the amount of the deduction for state death taxes allowed under Section 2058 of the Internal Revenue Code, to the extent deducted in computing the federal taxable estate.
      2. Increased by the amount of the deduction for foreign death taxes allowed under Section 2053(d) of the Internal Revenue Code, to the extent deducted in computing the federal taxable estate.
      3. Increased by the aggregate amount of taxable gifts as defined in Section 2503 of the Internal Revenue Code, made by the decedent within two years of the date of death. For purposes of this subdivision, the amount of the addition equals the value of the gift under Section 2512 of the Internal Revenue Code and excludes any value of the gift included in the federal gross estate.
    15. “Situs of property” means, with respect to:
      1. real property, the state or country in which it is located;
      2. 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;
      3. a qualified work of art, as defined in Section 2503(g)(2) of the Internal Revenue Code, 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 Section 501(c)(3) of the Internal Revenue Code, that is located in Vermont, the situs of the art is deemed to be outside Vermont; and
      4. 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.

    HISTORY: 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.

    History

    References in text.

    Section 3101 of this title, as amended, referred to in subdiv. (1), no longer relates to appointment of the Commissioner of Taxes. The subject matter is now covered by 3 V.S.A. § 2251 .

    Amendments

    —2021. Subdiv. (8): Act No. 9 substituted “2020, which shall continue in effect as adopted until amended, repealed, or replaced by act of the General Assembly” for “2019” following “December 31,”.

    Subdiv. (8): Act No. 73 deleted “, which shall continue in effect as adopted until amended, repealed, or replaced by act of the General Assembly” at the end of the first sentence and added the last sentence.

    —2019 (Adj. Sess.). Subdiv. (8): Substituted “December 31, 2019” for “December 31, 2018” in the first sentence.

    —2019. Subdiv. (8): Substituted “2018” for “2015” in the first sentence, and substituted “has” for “shall have” in the second sentence. su

    —2017 (Adj. Sess.). Subdiv. (3): Substituted “the” for “such” preceding “estate tax” and deleted “thereto” preceding “by the laws”.

    —2015 (Adj. Sess.). Subdivs. (4) and (12): Repealed.

    Subdivs. (8), (13), and (14): Amended generally.

    Subdiv. (15): Added.

    —2001 (Adj. Sess.) Subdiv. (8): Deleted “whether enacted before or after this chapter” following “as the case may be,” and inserted “but with the credit for state death taxes under section 2011, as in effect on January 1, 2001, of the Internal Revenue Code, and without any deduction for state death taxes under Section 2058 of the Internal Revenue Code”.

    Retroactive effective date and applicability of 2021 amendment. 2021, No. 9 , § 33(2) provides: “Secs. 23-23b (annual link to federal statutes) shall take effect retroactively on January 1, 2021 and shall apply to taxable years beginning on and after January 1, 2020.”

    2021, No. 73 , § 27(6) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. 24 (tax year 2020 link to federal estate tax statutes) shall take effect retroactively on January 1, 2021 and shall apply to taxable years beginning on and after January 1, 2020.”

    Retroactive effective date and applicability of 2019 (Adj. Sess.) amendment. 2019, No. 175 (Adj. Sess.), § 31(3) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. 13-14 (annual link to federal statutes) [which amended 32 V.S.A. § 5824 and this section] shall take effect retroactively on January 1, 2020 and apply to taxable years beginning on and after January 1, 2019.”

    Retroactive effective date and applicability of 2019 amendment. 2019, No. 51 , § 41(2) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. 5-6 (annual link-up to federal statutes) [which amended this section and 32 V.S.A. § 5824 ] shall take effect retroactively on January 1, 2019 and apply to taxable years beginning on January 1, 2018 and thereafter.”

    Retroactive effective date and applicability of 2015 (Adj. Sess.) amendment. 2015, No. 146 (Adj. Sess.), § 6(a) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. 1-4 [which amended this section and 32 V.S.A. §§ 7442a , 7444 and repealed 32 V.S.A. § 7475 ] shall take effect retroactively on January 1, 2016 and apply to decedents dying after December 31, 2015.

    2021, No. 73 , § 27(6) provides: “Notwithstanding 1 V.S.A. § 214 , Sec. 24 (tax year 2020 link to federal estate tax statutes) shall take effect retroactively on January 1, 2021 and shall apply to taxable years beginning on and after January 1, 2020.”

    Applicability of 2002 amendment. 2001, No. 140 (Adj. Sess.), § 43(3) provides that § 13 of that act [which amended this section] shall apply to estates of decedents with a date of death on or after January 1, 2002.

    § 7403. Repealed. 1987, No. 278 (Adj. Sess.), § 4, eff. June 21, 1988.

    History

    Former § 7403. Former § 7403, relating to confidentiality of tax records, was derived from 1979, No. 105 (Adj. Sess.), § 15. The subject matter is now covered by § 3102 of this title.

    Subchapter 2. Gift Tax

    §§ 7411-7418. Repealed. 1979, No. 140 (Adj. Sess.), § 2, eff. date, see note below.

    History

    Former §§ 7411-7418. Former § 7411, relating to name of the gift tax, was derived from 1969, No. 269 (Adj. Sess.), § 1.

    Former § 7412, relating to imposition of the gift tax, was derived from 1969, No. 269 (Adj. Sess.), § 1, and amended by 1975, No. 183 (Adj. Sess.), § 1.

    Former § 7413, relating to returns required, was derived from 1969, No. 269 (Adj. Sess.), § 1.

    Former § 7414, relating to when return was to be filed, was derived from 1969, No. 269 (Adj. Sess.), § 1.

    Former § 7415, relating to time for payment of tax, was derived from 1969, No. 269 (Adj. Sess.), § 1.

    Former § 7416, relating to extension of time for payment, was derived from 1969, No. 269 (Adj. Sess.), § 1.

    Former § 7417, relating to payment of tax, was derived from 1969, No. 269 (Adj. Sess.), § 1.

    Former § 7418, relating to exhibiting property for appraisal and oath of taxpayer, was derived from 1969, No. 269 (Adj. Sess.), § 1.

    1979, No. 140 (Adj. Sess.) § 2, provided: “ 32 V.S.A. §§ 7411-7418 [this subchapter] are repealed effective January 1, 1980 with respect to Vermont gifts made after December 31, 1979.”

    Subchapter 3. Estate Tax

    ANNOTATIONS

    Nature and purpose.

    Estate tax imposed by this subchapter is a tax upon the privilege of transfer at death, based upon what is left by the decedent, not upon what comes to the beneficiaries or the heirs. In re Estate of Eddy, 135 Vt. 468, 380 A.2d 530, 1977 Vt. LEXIS 659 (1977).

    As a result of this subchapter’s expression of a clear legislative policy of a straightforward percentage tax upon property passing by virtue of decedent’s death, reaching transactions not covered by distribution fee by decree, and having exemptions, notably charitable requests, not provided for in the distribution fee, a legislative intent would not be inferred, sub silento, to enact a tax, or to enact one based upon entirely different principles, i.e., effective only upon resort to the probate court. In re Estate of Eddy, 135 Vt. 468, 380 A.2d 530, 1977 Vt. LEXIS 659 (1977).

    § 7441. Name of tax.

    The tax imposed by this subchapter shall be known as the Vermont estate tax.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.

    § 7442. Repealed. 1979, No. 140 (Adj. Sess.), § 3, eff. date, see note below.

    History

    Former § 7442. Former § 7442, relating to imposition of the estate tax, was derived from 1969, No. 269 (Adj. Sess.), § 1, and amended by 1975, No. 183 (Adj. Sess.), § 2. The subject matter is now covered by § 7442a of this title.

    1979, No. 140 (Adj. Sess.), § 3, provided: “ 32 V.S.A. §§ 7442 [this section] and 7443 and repealed effective January 1, 1980 with respect to estate of decedents dying after December 31, 1979.”

    § 7442a. Imposition of a Vermont estate tax and rate of tax.

    1. A tax is hereby imposed on the transfer of the estates of decedents as prescribed by this chapter.
    2. The tax shall be computed as follows. The following rates shall be applied to the Vermont taxable estate:

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      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.

    3. All values shall be as finally determined for federal estate tax purposes.
    4. [Repealed.]

    Amount of Vermont Taxable Estate Rate of Tax PARASTAT=“s” DESISTAT=“”>Under $5,000,000.00 None PARASTAT=“s” DESISTAT=“”>$5,000,000.00 or more 16 percent of the PARASTAT=“s” DESISTAT=“”> excess over PARASTAT=“s” DESISTAT=“”> $5,000,000.00

    HISTORY: 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. 1 60 (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.

    History

    Amendments

    —2019. Subsec. (b): Act No. 71, § 5 substituted “Under $4,250,000.00” for “Under $2,750,000.00”, “$4,250,000.00 or more” for “$2,750,000.00 or more”, and substituted “over $4,250,000.00” for “over $2,750,000.00”. su

    Subsec. (b): Act No. 71, § 6 substituted “Under $5,000,000.00” for “Under $4,250,000.00”, “$5,000,000.00 or more” for “$4,250,000.00 or more”, and substituted “over 5,000,000.00” for “over $4,250,000.00”. su

    —2017 (Adj. Sess.). Subsec. (b): Substituted “Under” for “Not over” preceding “$2,750,000.00”

    —2017. Subsec. (c): Added.

    —2015 (Adj. Sess.). Section amended generally.

    —2009 (Adj. Sess.) Subsec. (c): Amended generally.

    —2009. In the second sentence of subsec. (a), inserted “base” before “amount”, substituted “of” for “by which” after “amount”, deleted “, as in effect on January 1, 2001,” after “2011”, substituted “as in effect on January 1, 2001. This base amount shall be reduced by the lesser of the following” for “, hereinafter sometimes referred to as the “credit,” exceeds the lesser of ”; substituted “base amount of tax under subsection (a) of this section” for “credit” in the second sentence of subsec. (b); redesignated former subsec. (c) as subsec. (d); and added subsec. (c).

    —2001 (Adj. Sess.) Subsec. (a): Deleted the section heading, substituted “on or after January 1, 2002,” for “after December 31, 1979” in the first sentence, inserted “as in effect on January 1, 2001,” following “section 2011”, and deleted “as amended, or under such statutory provisions as corresponds thereto” following “Internal Revenue Code” in the second sentence.

    Subdiv. (a)(1): Deleted “which qualify for the credit” following “other states”.

    Subdiv. (a)(2): Deleted “allowable to a decedent’s estate” following “proportion of the credit”.

    Subsec. (b): Deleted the section heading and substituted “on or after January 1, 2002” for “after December 31, 1979”.

    —1995. Subsec. (a): Deleted “as the same may be” preceding “amended” and “from time to time” thereafter in the second sentence of the second paragraph and “which qualifies for the credit” following “states” in subdiv. (2).

    Subsec. (b): Deleted “which qualifies for the credit” preceding “bears” in the second sentence of the second paragraph.

    Effective date of amendments—

    2019. 2019, No. 71 , § 2(4) provided that the amendment to this section by § 5 of that act was to take effect on January 1, 2020. su

    2019, No. 71 , § 24(5) provided that the amendment to this section by § 6 of that act was to take effect on January 1, 2021. su

    Retroactive effective date and applicability of 2015 (Adj. Sess.) amendment. 2015, No. 146 (Adj. Sess.), § 6(a) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. 1-4 [which amended this section and 32 V.S.A. §§ 7402 , 7444 and repealed 32 V.S.A. § 7475 ] shall take effect retroactively on January 1, 2016 and apply to decedents dying after December 31, 2015.

    Applicability of 2009 (Adj. Sess.) amendment. 2009, No. 160 (Adj. Sess.), § 62(10) provides that §§ 33a and 33b [which amended this section and § 7475 of this title] (estate tax) shall apply to decedents dying after December 31, 2010.

    Applicability of 2002 amendment. 2001, No. 140 (Adj. Sess.), § 43(3) provides that § 12 of that act [which amended this section] shall apply to estates of decedents with a date of death on or after January 1, 2002.

    § 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.

    HISTORY: Added 2001, No. 140 (Adj. Sess.), § 21, eff. June 21, 2002; amended 2003, No. 70 (Adj. Sess.), § 51, eff. March 1, 2004.

    History

    Former § 7443. Former § 7443, relating to imposition of a tax in addition to the estate tax, was derived from 1969, No. 269 (Adj. Sess.), § 1, and was previously repealed by 1979, No. 140 (Adj. Sess.), § 3.

    Amendments

    —2003 (Adj. Sess.). Inserted “in Vermont” following “farming”.

    Applicability of 2002 enactment. 2001, No. 140 (Adj. Sess.), § 43(3) provides that § 21 of that act [which enacted this section] shall apply to estates of decedents with a date of death on or after January 1, 2002.

    § 7444. Return by executor.

    1. 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 Section 6018 of the Internal Revenue Code; or
      2. the sum of the federal gross estate and federal adjusted taxable gifts, as defined in Section 2001(b) of the Internal Revenue Code, made within two years of the date of the decedent’s death exceeds $2,750,000.00.
    2. If the executor is unable to make a complete return as to any part of the gross estate of the decedent, he or she shall include in his or her return (to the extent of his or her 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.

    HISTORY: 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.

    History

    Amendments

    —2015 (Adj. Sess.). Subsec. (a): Added.

    Subsec. (b): Deleted the former first sentence.

    —2009. Substituted “a tax is imposed upon the estate under section 7442a of this chapter” for “the federal gross estate at the time of the death of the decedent exceeds the applicable federal exclusion amount or where the estate is subject to federal estate tax” after “where” in the first sentence.

    —2003 (Adj. Sess.). Deleted former subsec. (a) and the subsec. (b) designation, and substituted “the applicable federal exclusion amount or where the estate is subject to federal estate tax” for “sixty thousand dollars” in the first sentence and inserted “or she” following “he” and “or her” following “his” in the second sentence.

    Effective date and applicability of 2015 (Adj. Sess.) amendment. 2015, No. 146 (Adj. Sess.), § 6(a) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. 1-4 [which amended this section and 32 V.S.A. §§ 7402 , 7442a and repealed 32 V.S.A. § 7475 ] shall take effect retroactively on January 1, 2016 and apply to decedents dying after December 31, 2015.

    § 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.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2009, No. 1 (Sp. Sess.), § H.33.

    History

    Amendments

    —2009. Added “, 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” after “authorities.”

    § 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.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2009, No. 1 (Sp. Sess.), § H.34.

    History

    Amendments

    —2009. Substituted “within nine months of the death of the decedent. Prior to expiration of the filing period, executors may apply for a six-month extension” for “at the time the federal estate tax return is required to be filed under the laws of the United States, including any extensions of time for filing granted by the federal authorities” after “filed.”

    CROSS REFERENCES

    Penalty for late filing, see § 3202 of this title.

    § 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.

    HISTORY: 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.

    History

    Amendments

    —2003 (Adj. Sess.). Inserted “, without extension” following “of this title”.

    —1995. Deleted “or 15 months after the date of the decedent’s death, whichever is later” following “title”.

    CROSS REFERENCES

    Penalty and interest for delinquent payment, see § 3202 of this title.

    § 7448. Extension of time for payment.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Revision note—

    In subsec. (a), “payment of the due date” was changed to “payment on the due date” to correct a grammatical error.

    Amendments

    —1981 (Adj. Sess.). Subsec. (b): Substituted “per annum established from time to time by the commissioner pursuant to section 3108 of this title” for “of one percent per month” preceding “on the unpaid” in the first sentence.

    —1979 (Adj. Sess.). Subsec. (b): Deleted “an amount of” preceding “interest” and “one-half of” preceding “one percent” and inserted “the unpaid amount of” following “month in” in the first sentence.

    § 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.

    HISTORY: 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.

    History

    Amendments

    —2017. Deleted “register of the” preceding “Probate” and substituted “Division” for “Court” following “Probate” in the section heading and text.

    § 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.

    HISTORY: 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.

    History

    Amendments

    —2009 (Adj. Sess.) Substituted “probate division of the superior court” for “probate court”.

    § 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.

    HISTORY: 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.

    History

    Amendments

    —2009 (Adj. Sess.) Substituted “probate division of the superior court” for “probate court”.

    § 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.

    HISTORY: 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.

    1. 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.
    2. 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.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.

    History

    Revision note—

    Undesignated paragraphs were designated as subsecs. (a) and (b) to conform section to V.S.A. style.

    § 7454. Discharge of executor; income tax clearance; notice of proceedings in court.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Revision note—

    Subsec. (b): References to “chapter 152 of this title” were changed to “chapter 151 of this title” to conform references to renumbering of such chapter.

    Amendments

    —2009 (Adj. Sess.) Subsec. (a): Substituted “probate division of the superior court” for “probate court”.

    §§ 7455-7459. [Reserved for future use]

    § 7460. Generation-skipping transfers.

    1. 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.
    2. 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, of the Internal Revenue Code of the United States.
    3. 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, of the Internal Revenue Code of the United States.
    4. 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.
    5. 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.
    6. 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.
    7. 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.

    HISTORY: Added 1999, No. 49 , § 57, eff. June 2, 1999; amended 2001, No. 140 (Adj. Sess.), § 16, eff. June 21, 2002.

    History

    References in text.

    26 U.S.C. § 2604, referred to in subsecs. (b) and (c), was repealed by Tax Increase Prevention Act, Dec. 19, 2014, P.L. 113-295, Div. A, Title II, § 221(a)(95)(B)(i), 128 Stat. 4051, effective on enactment and subject to savings provisions, as provided by § 221(b) of P.L. 113-295.

    Amendments

    —2001 (Adj. Sess.) Subsecs. (b) and (c): Inserted “as in effect on January 1, 2001” following “Section 2604”.

    Effective date of section. 1999, No. 49 , § 99(d) provides that this section regarding generation-skipping tax shall take effect with respect to transfers on and after January 1, 2000.

    Applicability of 2002 amendment. 2001, No. 140 (Adj. Sess.), § 43(3) provides that § 16 of that act [which amended this section] shall apply to estates of decedents with a date of death on or after January 1, 2002.

    Subchapter 4. General Provisions

    § 7470. Administration of chapter.

    The Commissioner shall administer and enforce this chapter.

    HISTORY: 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.

    HISTORY: Added 1969, No. 269 (Adj. See.), § 1, eff. date, see note under § 7401 of this title.

    CROSS REFERENCES

    Procedure for adoption of administrative rules, see 3 V.S.A. chapter 25.

    § 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.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.

    § 7473. Allocation of payments.

    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:

    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; next, against any portion of any tax liability incurred with respect to the current taxable year. As to each portion, the payment shall be applied, first, to the amount of any interest; next, to the amount of any penalty; next, to the amount of any fee; next, to the amount of any unpaid tax; incurred with respect to the taxable year.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.

    § 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.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.

    § 7475. Repealed. 2015, No. 146 (Adj. Sess.), § 4, eff. January 1, 2016.

    History

    Former § 7475. Former § 7475, relating to the adoption of federal estate and gift tax laws, was derived from 2001, No. 140 (Adj. Sess.), § 15 and amended by 2003, No. 66 , § 314; 2003, No. 152 (Adj. Sess.), § 25; 2005, No. 14 , § 14; 2005, No. 94 (Adj. Sess.), § 3; 2007, No. 33 , § 7; 2007, No. 190 (Adj. Sess.), § 27; 2009, No. 1 (Sp. Sess.), § H.35; 2009, No. 1 60 (Adj. Sess.), § 33b; 2011, No. 143 (Adj. Sess.), § 12; 2013, No. 73 , § 15 and 2013, No. 174 (Adj. Sess.), § 6.

    Effective date and applicability of 2015 (Adj. Sess.) amendment. 2015, No. 146 (Adj. Sess.), § 6(a) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. 1-4 [which repealed this section and amended 32 V.S.A. §§ 7402 , 7442a and 7444] shall take effect retroactively on January 1, 2016 and apply to decedents dying after December 31, 2015.

    § 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.

    HISTORY: 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.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2019. Subsec. (b): Substituted “after” for “of” following “15 days”, and substituted “sections 3202 and 3203” for “section 7485”.

    —1973 (Adj. Sess.). Subsec. (a): References to “county court” and “Washington county court” were changed to “superior court” and “Washington superior court” in the first sentence.

    § 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.

    HISTORY: 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.

    1. 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.
    2. 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.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.

    History

    References in text.

    Section 6212 of the Internal Revenue Code of 1986, referred to in subdiv. (a)(2), is codified as 26 U.S.C. § 6212.

    Revision note

    —2021. In subsec. (b), deleted “, without limitation,” following “including” in accordance with 2013, No. 5 , § 4.

    Revision note—. In subsec. (a), substituted “the Internal Revenue Code of 1986” for “the Internal Revenue Code of 1954” to conform reference to redesignation of the Code pursuant to § 2(a) of P.L. 99-514.

    § 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.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.

    CROSS REFERENCES

    Punishment for perjury, see 13 V.S.A. § 2901 .

    § 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.

    HISTORY: 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.

    History

    Amendments

    —1981 (Adj. Sess.). Substituted the words “per annum established from time to time by the commissioner pursuant to section 3108 of this title” for “of one percent per month” following “rate” in the second sentence.

    —1979 (Adj. Sess.). Rewrote the second sentence.

    § 7482. Repealed. 1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.

    History

    Former § 7482. Former § 7482, relating to penalties for late filing, was derived from 1969, No. 269 (Adj. Sess.), § 1 and amended by 1979, No. 105 (Adj. Sess.), § 18.

    See also §§ 3202 and 3203 of this title, relating to interest and penalties.

    § 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.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2021, No. 73 , § 6.

    History

    Amendments

    —2021. Section amended generally.

    §§ 7484, 7485. Repealed. 1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.

    History

    Former §§ 7484, 7485. Former § 7484, relating to penalty and interest for delinquent payment, was derived from 1969, No. 269 (Adj. Sess.), § 1 and amended by 1979, No. 105 (Adj. Sess.), § 19 and 1981, No. 191 (Adj. Sess.), § 7.

    Former § 7485, relating to notice of deficiencies; assessment of penalties and interest, was derived from 1969, No. 269 (Adj. Sess.), § 1 and amended by 1979, No. 105 (Adj. Sess.).

    See also §§ 3202 and 3203 of this title, relating to interest and penalties.

    § 7486. Time limitation on notices of deficiency and assessment of penalty and interest.

    1. 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.
    2. 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.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2017, No. 113 (Adj. Sess.), § 190.

    History

    Amendments

    —2017 (Adj. Sess.). Subsec. (a) and subdiv. (b)(3): Substituted “sections 3202 and 3203” for “section 7485”.

    § 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.

    HISTORY: 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.

    History

    Amendments

    —2017 (Adj. Sess.). Substituted “sections 3202 and 3203” for “section 7485”.

    —1989 (Adj. Sess.). Substituted “60” for “thirty” in the first sentence.

    —1975 (Adj. Sess.). Substituted “thirty” for “twenty” preceding “days” in the first sentence.

    Effective date of amendments—

    1975 (Adj. Sess.). 1975, No. 154 (Adj. Sess.), § 16, provided, in part, that § 2, which amended this section, “shall be effective with respect to assessments made and returns filed after June 30, 1976.”

    § 7488. Refunds; petitions for refunds.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Revision note—

    In the third sentence of subsec. (a), substituted “this subsection” for “this paragraph” to conform reference to V.S.A. style.

    Amendments

    —2013. Subsec. (b): Inserted “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” in the last sentence.

    —2009 (Adj. Sess.) Subsec. (b): Inserted “petition or amended” preceding “return” and deleted “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” following “filed” in the last sentence.

    —1993. Subsec. (b): Deleted “of 12 percent” preceding “per annum” and added “established pursuant to section 3108 of this title” thereafter in the first sentence, inserted “45 days after” following “computed from”, substituted “the return was filed or from 45 days after” for “of the excess payment, or from” preceding “the date the return was due” and inserted “including any extensions of time thereto” thereafter in the second sentence.

    —1979 (Adj. Sess.). Subsec. (b): Substituted “12” for “six” preceding “percent per annum” at the end of the first sentence.

    1993 amendment. 1993, No. 49 , § 27, provided that the amendment to subsec. (b) of this section by § 15 of that act shall apply to any overpayment on or after July 1, 1993.

    Applicability of 2009 (Adj. Sess.) amendment. 2009, No. 160 (Adj. Sess.), § 62(9) provides that § 32 [which amended subsec. (b) of this section] (estate tax petition for refund) shall apply to decedents dying after December 31, 2009.

    § 7489. Procedure for hearings by Commissioner; appeals.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —1979 (Adj. Sess.). Subsec. (b): Substituted “any aggrieved taxpayer may, within thirty days” for “a taxpayer may”.

    —1973 (Adj. Sess.). Subsec. (b): Changed “county court” to “superior court” in two places.

    —1971 (Adj. Sess.). Subsec. (a): Substituted “Chapter 25 of Title 3” for “such reasonable conditions, procedures, and rules of evidence as the commissioner shall prescribe” following “governed by”.

    Subsec. (b): Deleted the second sentence.

    § 7490. Payment and collection of deficiencies and assessments; jeopardy notices.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2017 (Adj. Sess.). Subsecs. (a), (b), subdiv. (b)(1): Substituted “sections 3202 and 3203” for “section 7485”.

    Subdiv. (a)(1): Substituted “30 days after” for “30 days of”.

    —1979 (Adj. Sess.). Subsec. (a): Substituted “thirty” for “twenty” preceding “days” in the first sentence of the introductory paragraph and following “within” in subdiv. (2).

    —1971 (Adj. Sess.). Subdiv. (a)(2): Substituted “in such manner as the supreme court may be rule provide” for “under section 2382 of Title 12” preceding “collection”.

    § 7491. Remedy exclusive; determination final.

    1. 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.
    2. 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.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title; amended 2017, No. 113 (Adj. Sess.), § 193.

    History

    Amendments

    —2017 (Adj. Sess.). Subsecs. (a), (b): Substituted “sections 3202 and 3203” for “section 7485”.

    § 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:
      1. 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;
      2. 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 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.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.

    ANNOTATIONS

    Constitutional law.

    Appellant seeking refund of Vermont gift taxes paid, who argued that State Legislature unconstitutionally delegated its responsibilities by adopting federal gift tax structure and rates and mandating that federal judicial or administrative decisions shall be conclusive on questions of State gift tax liability, and supported his claim with examples of how changes in federal law might affect the State tax scheme, but who did not cite any changes in federal law during the years that affected him, could not base a constitutional challenge on theoretical irregularities, but rather, must show that he was unfavorably affected. Pabst v. Commissioner of Taxes, 136 Vt. 126, 388 A.2d 1181, 1978 Vt. LEXIS 702, app. dismissed, 439 U.S. 922, 99 S. Ct. 303, 58 L. Ed. 2d 315, 1978 U.S. LEXIS 3523 (1978).

    Where taxpayer contended that gift tax statute, which made tax a percentage of federal gift tax, violated State and U.S. Constitutions in that it delegated State Legislature’s responsibilities by mandating that federal judicial or administrative decisions shall be conclusive on questions of gift tax liability, but taxpayer did not cite any federal judicial or administrative decisions adverse to him, alleged invalidity of delegation would not be considered. Pabst v. Commissioner of Taxes, 136 Vt. 126, 388 A.2d 1181, 1978 Vt. LEXIS 702, app. dismissed, 439 U.S. 922, 99 S. Ct. 303, 58 L. Ed. 2d 315, 1978 U.S. LEXIS 3523 (1978).

    Vermont gift tax statute making the tax a percentage of federal gift tax through adoption of federal determination of taxable gifts and adoption of federal rate schedule and providing for a freeze on the applicable rate schedule as it appeared on January 1, 1971, regardless of future changes in federal law, was not an unconstitutional delegation of State legislative responsibility to the federal government. Pabst v. Commissioner of Taxes, 136 Vt. 126, 388 A.2d 1181, 1978 Vt. LEXIS 702, app. dismissed, 439 U.S. 922, 99 S. Ct. 303, 58 L. Ed. 2d 315, 1978 U.S. LEXIS 3523 (1978).

    Vermont gift tax statute, which makes the tax a percentage of the federal gift tax, having incorporated federal determination of what gifts are taxable and federal rate schedule, and thus having incorporated federal lifetime exemption, denied equal protection and was unconstitutional insofar as it in effect extended the exemption to those who had never taken the federal exemption, but withheld it from appellant, who had used his federal exemption prior to effective date of gift tax. Pabst v. Commissioner of Taxes, 136 Vt. 126, 388 A.2d 1181, 1978 Vt. LEXIS 702, app. dismissed, 439 U.S. 922, 99 S. Ct. 303, 58 L. Ed. 2d 315, 1978 U.S. LEXIS 3523 (1978).

    Legislature may vary gift tax rates according to the relative ability of taxpayers to pay and could have concluded that value of all gifts given in the past indicates ability to pay the tax on current gifts, a conclusion that court could not say was so unrelated to permissible purpose of the tax, collection of revenue through scheme to prevent untaxed transfer of wealth, as to be arbitrary and capricious; therefore, where federal gift tax for current year rose as the total amount of federal taxable gifts since inauguration of federal gift tax rose, and Vermont gift was a percentage of federal gift tax, making the Vermont tax higher for those who had made more gifts in the past, the resulting discrimination was not unreasonable and did not deny equal protection. Pabst v. Commissioner of Taxes, 136 Vt. 126, 388 A.2d 1181, 1978 Vt. LEXIS 702, app. dismissed, 439 U.S. 922, 99 S. Ct. 303, 58 L. Ed. 2d 315, 1978 U.S. LEXIS 3523 (1978).

    Vermont gift tax statute has a retroactive element in that the more gifts made prior to effective date of the law, the higher the tax on gifts made after that date, but under test of whether burden placed on appellant taxpayer was so harsh and oppressive as to constitute denial of due process, which depends on degree to which taxpayer was surprised by the law and the likelihood that he would have altered his conduct had he foreseen the retroactive feature of the law, taxpayer had not demonstrated sufficient oppressiveness to require court to declare the tax unconstitutional. Pabst v. Commissioner of Taxes, 136 Vt. 126, 388 A.2d 1181, 1978 Vt. LEXIS 702, app. dismissed, 439 U.S. 922, 99 S. Ct. 303, 58 L. Ed. 2d 315, 1978 U.S. LEXIS 3523 (1978).

    Where Vermont gift tax was a percentage of federal gift tax and federal tax for current year rose as total amount of federal taxable gifts since inauguration of federal gift tax rose, so that Vermont tax was higher for those who had made more gifts in the past, thereby giving a retroactive element to the tax, there was no denial of due process arising from retroactive effect. Pabst v. Commissioner of Taxes, 136 Vt. 126, 388 A.2d 1181, 1978 Vt. LEXIS 702, app. dismissed, 439 U.S. 922, 99 S. Ct. 303, 58 L. Ed. 2d 315, 1978 U.S. LEXIS 3523 (1978).

    Where it was held that Vermont gift was an unconstitutional denial of equal protection insofar as it granted a $ 30,000 lifetime exemption to some taxpayers but not to appellant, as the State tax was based on federal gift tax determination of taxability and appellant had used his federal lifetime exemption prior to effective date of State tax, appellant would be allowed to recompute his State gift tax liability, using a $ 30,000 exemption. Pabst v. Commissioner of Taxes, 136 Vt. 126, 388 A.2d 1181, 1978 Vt. LEXIS 702, app. dismissed, 439 U.S. 922, 99 S. Ct. 303, 58 L. Ed. 2d 315, 1978 U.S. LEXIS 3523 (1978).

    § 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.

    HISTORY: 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.

    HISTORY: 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.

    History

    Amendments

    —1973 (Adj. Sess.). Reference to “Washington county court” was changed to “Washington superior court” in the second sentence.

    § 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 his or her 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 through 5193 and sections 5253 through 5263 of this title. The sheriff shall return the warrant to the Commissioner and pay to him or her the money collected thereunder within time specified in the warrant.

    HISTORY: Added 1969, No. 269 (Adj. Sess.), § 1, eff. date, see note under § 7401 of this title.

    § 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.

    HISTORY: Added 1969, No. 269 (Adj. Sess.) § 1, eff. date, see note under § 7401 of this title.

    § 7497. Tax liability as property lien.

    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. 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.
    2. 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.
    3. 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. §§ 4523 through 4530 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.

    HISTORY: 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.

    History

    References in text.

    12 V.S.A. §§ 4523 through 4530, referred to in subsec. (c), were repealed by 2011, No. 102 (Adj. Sess.), § 2.

    Amendments

    —2017 (Adj. Sess.). Subsec. (a): Substituted “sections 3202 and 3203” for “section 7485” in the first sentence.

    —1989. Subsec. (a): Added the fourth sentence.

    —1971 (Adj. Sess.). Subsec. (c): Substituted “4523” for “4521” following “sections” and inserted “and in such rules as the supreme court may promulgate” following “Title 12” in the second sentence and substituted “satisfied” for “foreclosed” following “lien may be” and “Article 9 of Title 9A for the disposition of collateral under a security interest” for “sections 1791 through 1797 of title 9 for the foreclosure of chattel mortgages” following “prescribed in” in the third sentence.

    Part 5. Special Taxes

    Chapter 201. Amusement Machines

    §§ 7501-7504. Repealed. 2003, No. 152 (Adj. Sess.), § 11, eff. June 7, 2004.

    History

    Former §§ 7501-7504. Former § 7501, relating to pinball and similar machines, was derived from 1951, No. 28 , § 1; and amended by 1971, No. 73 , § 23; 1991, No. 186 (Adj. Sess.), § 17; and 1999, No. 49 , § 58.

    Former § 7502, relating to juke boxes and similar machines, was derived from 1951, No. 28 , § 2; and amended by 1971, No. 73 , § 24; 1991, No. 186 (Adj. Sess.), § 18; and 1999, No. 49 , § 59.

    Former § 7503, relating to application for licenses, was derived from 1951, No. 28 , § 3.

    Former § 7504, relating to requirements for licenses, was derived from 1951, No. 28 , § 4.

    Chapter 203. Auctioneers

    CROSS REFERENCES

    Livestock-related businesses, auctions, and sales rings, see 6 V.S.A. chapter 63.

    §§ 7601-7606. Repealed. 2001, No. 151 (Adj. Sess.), § 44, eff. June 27, 2002.

    History

    Former §§ 7601-7606. Former § 7601, relating to revocation of auctioneers’ licenses, was derived from 1947, § 1191; 1945, No. 18 , § 1; 1935, No. 37 , § 1; P.L. § 1166; 1933, No. 144 , G.L. § 6630; 1917, No. 53 , § 11; 1915, No. 1 , § 167; 1915, No. 201 ; P.S. § 5542; 1900, No. 95 , § 1; V.S. § 4744; R.L. § 3963; G.S. 81, § 15; 1856, No. 44 , § 1.

    Former § 7601a, relating to auctioneers’ fees, was derived from 1991, No. 167 (Adj. Sess.), § 60; 1997, No. 59 , § 64; 1999, No. 49 , § 183.

    Former § 7602, relating to applications and recording of auctioneers’ licenses, was derived from 1947, § 1192; P.L. § 1167; G.L. § 6631; 1917, No. 53 , § 12; P.S. § 5543; 1900, No. 95 , § 2; V.S. § 4745; R.L. § 3964; G.S. 81, § 16; 1856, No. 44 , § 2.

    Former § 7603, relating to auctioneers’ sales without a license, was derived from 1947, § 1193; P.L. § 1168; G.L. § 6632; 1917, No. 53 , § 13; P.S. § 5544; R. 1906, § 5404; 1900, No. 95 , § 3; V.S. § 4746; R.L. § 3965; G.S. 81, § 17; 1856, No. 44 , § 3.

    Former § 7604, relating to auctioneers’ license reciprocity, was derived from 1971, No. 225 (Adj. Sess.), § 3.

    Former § 7605, relating to bonding of auctioneers, was derived from 1971, No. 225 (Adj. Sess.), § 5, and was previously repealed by 1985, No. 257 (Adj. Sess.), § 3.

    Former § 7606, relating to claims against an auctioneer, was derived from 1971, No. 225 (Adj. Sess.), § 5.

    Chapter 205. Cigarettes and Tobacco Products

    History

    Amendments

    —1959. 1959, No. 231 , § 1, changed chapter heading from “Cigarettes” to “Cigarettes and Tobacco Products.”

    Notes to Opinions

    Exemptions.

    A sale of cigarettes or tobacco products to an agency or subdivision of the government of the State of Vermont is not exempt from the taxes imposed by this chapter. 1966-68 Vt. Op. Att'y Gen. 206.

    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.

    History

    Source.

    V.S. 1947, § 1161. 1939, No. 35 , § 18.

    CROSS REFERENCES

    Procedure for adoption of administrative rules, see 3 V.S.A. chapter 25.

    § 7702. Definitions.

    The following words and phrases, as used in this chapter, shall have the following meanings, unless the context otherwise requires:

    1. “Cigarette” means:
      1. any roll of tobacco wrapped in paper or any substance not containing tobacco; and
      2. 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.
    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 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, or new smokeless tobacco as defined in this section.
    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 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.

    HISTORY: 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. 1 60 (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.

    History

    Source.

    1949, No. 30 , § 1. V.S. 1947, § 1144. 1939, No. 35 , § 1.

    Revision note

    —2021. In subdiv. (1)(B), substituted “subdivision” for “subsection” to conform to V.S.A. style.

    Revision note—. Definitions (2a), (2b), (3), (4), (4a), (5), (5a), (6)-(10), (10a), (11)-(16) were renumbered as (3), (4), (5), (6), (7), (8), (9), (10)-(14), (15), (16)-(21) to conform numbering to V.S.A. style.

    Amendments

    —2019. Subdiv. (15): Inserted “, 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” preceding “; but shall not”.

    —2013. Subdiv. (4): Repealed.

    Subdiv. (7): Inserted “cigarettes, little cigars, roll-your-own tobacco, snuff, new smokeless tobacco, and other” following “sells”.

    Subdiv. (10): Substituted “licensed pursuant to 7 V.S.A. § 1002 ” for “who sells or furnishes cigarettes or tobacco products, or both, in small quantities to consumers only, but not for the purpose of resale”.

    Subdiv. (15): Substituted “ ‘Other tobacco products’ ” for “ ‘Tobacco products’ ” and deleted “moist” preceding “snuff”.

    Subdiv. (16): Substituted “means” for “shall mean”; inserted “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” preceding “sells”; substituted “any of these products” for “cigarettes or tobacco products, or both”; and inserted “other” preceding “wholesale” and “dealers” following “wholesale”.

    Subdiv. (18): Inserted “, little cigars, roll-your-own tobacco, snuff, new smokeless tobacco” following “cigarettes” and “other” preceding “tobacco” and deleted “, or both” following “products”.

    Subdiv. (19): Substituted “licensed wholesale dealer” for “distributor” and inserted “, little cigars, roll-your-own tobacco, snuff, new smokeless tobacco, or other”.

    —2011 (Adj. Sess.). Subdiv. (6): Act Nos. 143 and 166 substituted “four and one-half pounds” for “three pounds” at the end.

    —2009 (Adj. Sess.) Subdiv. (21): Added.

    —2009. Added “, has a moisture content of no less than 45 percent, and is not offered in individual single-dose tablets or other discrete single-use units” at the end of subdiv. (13); in subdiv. (15), substituted “any product manufactured from, derived from, or containing tobacco that is intended for human consumption by smoking, chewing, or in any other manner” for “cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff, snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweeping of tobacco, and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking” and inserted “, little cigars, roll-your-own tobacco, moist snuff, or new smokeless tobacco” after “cigarettes”; and added subdiv. (20).

    —2005 (Adj. Sess.). Section amended generally.

    —1995. Subdiv. (13): Inserted “wholesale or” preceding “retail”.

    —1981. Deleted former subdiv. (5), redesignated former subdivs. (6)-(10) as subdivs. (5)-(9), deleted former subdivs. (11) and (12), redesignated former subdivs. (13)-(15) as subdivs. (10)-(12), deleted former subdivs. (16) and (17), redesignated former subdivs. (18)-(20) as subdivs. (13)-(15), redesignated former subdiv. (21) as subdiv. (16) and rewrote that subdivision.

    —1967 (Adj. Sess.) Subdiv. (21): Amended generally.

    —1959. Added subdivs. (2a), (2b), (4a), (5a), (10a) and (16), inserted “or tobacco products, or both” following “cigarettes” in subdivs. (6), (8), (13) and (15), rewrote subdiv. (9), and inserted “or tobacco products” following “cigarettes” in two places in subdiv. (11).

    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 .

    HISTORY: Amended 1959, No. 231 , § 3; 1981, No. 31 , § 2; 2013, No. 14 , § 9.

    History

    Source.

    1949, No. 30 , § 2. V.S. 1947, § 1145. 1939, No. 35 , § 2.

    Amendments

    —2013. Deleted “and distributor” following “dealer”; inserted “, roll-your-own tobacco, little cigars, snuff, new smokeless tobacco” following “cigarettes” and “other” preceding “tobacco”; and added the second sentence.

    —1981. Section amended generally.

    —1959. Inserted “or tobacco products, or both” following “cigarettes” and substituted “June 30, 1959” for “April 5, 1939”.

    § 7732. Application for and issuance of license.

    1. 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.
    2. 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.

    HISTORY: Amended 1981, No. 31 , § 3; 2013, No. 14 , § 10.

    History

    Source.

    1949, No. 30 , § 2. V.S. 1947, § 1145. 1939, No. 35 , § 2.

    Amendments

    —2013. Subsec. (a): Deleted “or distributor” following “dealer”.

    —1981. Subsec. (a): Amended generally.

    Subsec. (b): Inserted “without charge” preceding “on forms” in the first sentence.

    § 7733. Repealed. 1981, No. 31, § 18.

    History

    Former § 7733. Former § 7733, relating to license required by wholesale dealers, was derived from 1949, No. 30 , § 2; V.S. 1947, § 1145; 1939, No. 35 , § 2, and amended by 1971, No. 73 , § 25.

    § 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.

    HISTORY: Amended 1959, No. 231 , § 4; 1981, No. 31 , § 4; 2013, No. 14 , § 11; 2015, No. 57 , § 73, eff. June 11, 2015.

    History

    Source.

    1949, No. 30 , § 2. V.S. 1947, § 1145. 1939, No. 35 , § 2.

    Amendments

    —2015. Section amended generally.

    —2013. Deleted “or distributor” following “dealer”.

    —1981. Substituted “wholesale dealer or distributor” for “person engaged in such business” following “any”.

    —1959. Inserted “or tobacco products, or both” following “cigarettes”.

    § 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.

    HISTORY: Amended 1971, No. 73 , § 26, eff. April 16, 1971; 1981, No. 31 , § 5.

    History

    Source.

    V.S. 1947, § 1146. 1939, No. 35 , § 3.

    Amendments

    —1981. Section amended generally.

    —1971. Substituted “in each even numbered year” for “following the date of its issuance” following “May 31” in the first sentence and deleted “annually” preceding “before” in the last sentence.

    § 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.

    HISTORY: Amended 1971, No. 73 , § 27, eff. April 16, 1971; 1981, No. 31 , § 6; 2003, No. 14 , § 3; 2013, No. 14 , § 12.

    History

    Source.

    V.S. 1947, § 1147. 1939, No. 35 , § 4.

    Amendments

    —2013. Inserted “licensed” preceding “wholesale”; deleted “or distributor” following “dealer”; and substituted “11 V.S.A chapter 15” for “chapter 15 of Title 11” and “33 V.S.A. chapter 19,” for “chapter 19 of Title 33”.

    —2003. Deleted “or” following “chapter,” added “, or for failure . . . 19 of Title 33” following “15 of Title 11” in the first sentence.

    —1981. Substituted “or distributor” for “retail dealer or vending machine operator” in the first sentence.

    —1971. Deleted “or” preceding “retail dealer” and inserted “or vending machine operator” thereafter in the first sentence.

    § 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.

    HISTORY: 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.

    History

    Amendments

    —2013. Inserted “licensed” preceding “wholesale”; deleted “or distributor” following “dealer” throughout the section; and substituted “agent, or ” for “agent ,or”.

    —2011 (Adj. Sess.). Substituted “commissioner of financial regulation” for “commissioner of banking, insurance, securities, and health care administration” in the first sentence.

    —2001 (Adj. Sess.) Added the sixth sentence and made gender neutral changes throughout the section.

    —1995 (Adj. Sess.) Substituted “commissioner of banking, insurance, securities, and health care administration” for “commissioner of banking, insurance, and securities” in the first sentence.

    —1989 (Adj. Sess.). Substituted “commissioner of banking, insurance, and securities” for “commissioner of banking and insurance” in the first sentence.

    Subchapter 3. Stamp Tax

    § 7771. Rate of tax.

    1. 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.
    2. 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.
    3. 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:
        1. Products bearing a stamp affixed pursuant to this chapter.
        2. 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 subsection (c) of this section.
        3. 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.
      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.
    4. 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.

    HISTORY: 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. 1 60 (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.

    History

    Source.

    1957, No. 163 . 1949, No. 30 , § 3. V.S. 1947, § 1148. 1939, No. 35 , § 5.

    Editor’s note

    —2009. Although it was not codified, “99.5” replaced “89.5” pursuant to 2005, No. 191 (Adj. Sess.), § 40(b).

    Amendments

    —2015. Subsec. (b): Act No. 57 deleted “or a retail dealer” following “wholesale dealer” in the last sentence.

    Subsec. (d): Act No. 54 substituted “154 mills” for “137.5 mills” in the first sentence.

    —2013 (Adj. Sess.). Subsec. (d): Substituted “137.5 mills” for “131 mills” following “at the rate of”.

    —2011. Subsec. (d): Substituted “131” for “112” preceding “mills”.

    —2009 (Adj. Sess.) Section amended generally.

    —2009. Substituted “112” for “89.5” in the first sentence of subsec. (c).

    —2005 (Adj. Sess.). Acts No. 191 and No. 207 amended the section generally.

    —2001 (Adj. Sess.) Subdiv. (3): 2002, No. 140 (Adj. Sess.), § 24, eff. July 1, 2002, substituted “46.5 mills for each cigarette” for “22 mills for each cigarette” in the second sentence.

    Subdiv. (3): 2002, No. 140 (Adj. Sess.), § 26, eff. July 1, 2003, substituted “59.5 mills for each cigarette” for “46.5 mills for each cigarette” in the second sentence.

    —1995. Act No. 14 substituted “22” for “ten” preceding “mills” in the first sentence.

    Act No. 29 rewrote the former first sentence as the first and second sentences.

    —1991. Act No. 32, § 23, substituted “nine” for “eight and one-half” preceding “mills” in the first sentence.

    Act No. 32, § 24, substituted “nine and one-half” for “eight and one-half” preceding “mills” in the first sentence.

    Act No. 32, § 25, substituted “ten” for “eight and one-half” preceding “mills” in the first sentence.

    —1983 (Sp. Sess.) Substituted “eight and one-half” for “six” preceding “mills” in the first sentence.

    —1981. In the fourth sentence, deleted “licensed” preceding “retail dealer”.

    —1969. Substituted “six” for “five” preceding “mills” in the first sentence.

    —1965. Act No. 41 added “and interest” following “tax” in the section heading, substituted “subchapter” for “chapter” in two places in the second sentence, preceding “shall” in the third sentence and following “under this” in the fifth sentence of the first paragraph, and added the second and third paragraphs.

    Act No. 131 deleted “and interest” following “tax” in the section heading, substituted “five” for “four” preceding “mills” in the first sentence and “chapter” for “subchapter” in two places in the second sentence, preceding “shall” in the third sentence and following “under this” in the fifth sentence of the first paragraph, and deleted the second and third paragraphs.

    —1963. Substituted “four” for “three and a half” preceding “mills” in the first sentence.

    —1959. Substituted “three and a half” for “two and one-half” preceding “mills” in the first sentence and added the fourth and fifth sentences.

    Application and termination of 1991 amendments. 1991, No. 32 , § 26, provided: “Sec. 23 [of the act, which amended this section] shall apply to all cigarettes held by wholesale dealers on and after July 1, 1991, and shall terminate December 31, 1991. Sec. 24 [of the act, which amended this section] and shall apply to all cigarettes held by wholesale dealers on and after January 1, 1992 and shall terminate June 30, 1992. Sec. 25 [of the act, which amended this section] shall apply to all cigarettes held by wholesale dealers on and after July 1, 1992. Cigarettes on which a tax has been paid prior to the effective date of a rate increase and which are in the possession of retail dealers on that date may be sold to consumers by retail dealers without additional tax. All cigarettes held by wholesale dealers on the effective date of a rate increase or purchased by them thereafter shall be taxed at the higher rate.”

    Applicability of 1995, No. 14 amendment. 1995, No. 14 , § 19(1) provided that the amendment to this section by § 6 of that act shall apply to cigarettes held by wholesale dealers on and after July 1, 1995.

    Applicability of 2002 amendments. 2001, No. 140 (Adj. Sess.), § 43(5) provides that § 24 of that act [which amends this section] shall apply to taxable cigarettes on and after July 1, 2002.

    2001, No. 140 (Adj. Sess.), § 43(5) provides that § 26 of that act [which amends this section] shall apply to taxable cigarettes on and after July 1, 2003.

    Priority of 2005 (Adj. Sess.) amendments. 2005, No. 207 (Adj. Sess.), § 4, provided: “Sec. 3 of this act (amending 32 V.S.A. § 7771 relating to the cigarette tax) shall be subject to and further amended by any amendments to section 7771 in H.861 [Act No. 191], which are enacted in 2006, except that the repeal of the sentence at the end of subdivision (a)(3) of Sec. 3 of this act, which reads ‘All taxes upon cigarettes under this chapter are declared to be a direct tax upon the consumer at retail and shall conclusively be presumed to be precollected for the purpose of convenience and facility only.’ shall remain repealed.”

    Notes to Opinions

    Sales on United States property.

    Sale of cigarettes from Ethan Allen Air Force Base may be made without first affixing Vermont cigarette tax stamps to packages thereof sold. 1952-54 Vt. Op. Att'y Gen. 396.

    Section does not exempt cigarettes sold to a post exchange at an Air Force radar base in Vermont on lands leased to the United States government. 1950-52 Vt. Op. Att'y Gen. 319.

    § 7772. Form and sale of stamps.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: 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.

    History

    Source.

    1949, No. 30 , § 4. V.S. 1947, § 1149. 1941, No. 24 , § 1. 1939, No. 35 , § 6.

    Amendments

    —2015. Deleted “and retail dealers” or “and retail dealer” following “wholesale dealers” or “wholesale dealer” throughout the section.

    —2013. Subsec. (b): Deleted the former second sentence.

    —2001 (Adj. Sess.) Added the subsec. (a) designation, and in the second sentence of that subsection, substituted “The commissioner” for “He” at the beginning, added “for payment at time of sale” at the end, deleted the third sentence, and added subsecs. (b) and (c).

    —1983 (Sp. Sess.). Substituted “two and three-tenths” for “three and one-fifth” preceding “percent” in the second sentence.

    —1981. In the second sentence, deleted “licensed” preceding “retail dealers”.

    —1965. Substituted “three and one-fifth” for “three and one-half” preceding “per cent” in the second sentence.

    —1963. Substituted “three and one-half” for “three and three fourths” preceding “per cent” in the second sentence.

    —1959. Substituted “three and three fourths” for “four” preceding “per cent” in the second sentence.

    § 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.

    HISTORY: Amended 1981, No. 31 , § 10; 2013, No. 14 , § 14; 2015, No. 57 , § 76, eff. June 11, 2015.

    History

    Source.

    V.S. 1947, § 1150. 1939, No. 35 , § 7.

    Amendments

    —2015. Deleted “and retail dealer” following “wholesale dealer” in the first sentence.

    —2013. Inserted “licensed” preceding “wholesale” in the first and second sentences.

    —1981. Substituted “wholesale or retail dealer” for “licensee” preceding “any unused” and deleted “uncancelled” thereafter and “by any wholesale dealer or retail dealer” following “Montpelier” in the second sentence.

    § 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.

    HISTORY: Amended 1971, No. 73 , § 28, eff. April 16, 1971; 1981, No. 31 , § 11; 2013, No. 14 , § 15.

    History

    Source.

    V.S. 1947, § 1151. 1939, No. 35 , § 8.

    Amendments

    —2013. Inserted “licensed” preceding “wholesale” in the first and second sentences and substituted “The” for “Such” preceding “stamps” at the beginning of the second sentence.

    —1981. Deleted “wholesalers and vending machine operators” following “stamps” in the section heading, “and vending machine operator” following “dealer” in the first sentence and “and by a vending machine operator before the cigarettes leave his place of business to be placed in machines” following “possession” in the second sentence.

    —1971. Added “and vending machine operators” following “wholesalers” in the section heading, “and vending machine operator” following “dealer” in the first sentence and “and by a vending machine operator before the cigarettes leave his place of business” following “possession” in the second sentence.

    Notes to Opinions

    Affixing by retailer.

    Procedure by which retail dealer purchases unstamped cigarettes from the wholesaler who has them shipped by the manufacturer directly to the retailer who then affixes the required tax stamps, is prohibited by this section. 1950-52 Vt. Op. Att'y Gen. 327.

    Metering devices.

    Commissioner may issue regulations to permit use of metering devices. 1944-46 Vt. Op. Att'y Gen. 280.

    § 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.

    HISTORY: Amended 2015, No. 57 , § 77, eff. June 11, 2015.

    History

    Source.

    V.S. 1947, § 1152. 1939, No. 35 , § 9.

    Amendments

    —2015. Substituted “retail dealers” for “retailers” in the section heading.

    § 7776. Collection of cigarette tax through nonresident licensed wholesale dealers.

    1. When the Commissioner of Taxes shall find that the collection of the tax imposed by this chapter would be facilitated thereby, he or she may, in his or her discretion, authorize any person resident or located outside this State engaged in the business of manufacturing cigarettes or any person resident or located outside this State 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.
    2. Such nonresident person shall 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.
    3. Each such nonresident person, other than a foreign corporation that has received a certificate from the commissioner of foreign corporations authorizing it to do business in this State, shall, in writing, appoint the Secretary of State and his or her successors in office to be his or her attorney, such appointment to be made and filed in the manner prescribed in 11 V.S.A. § 692(3) .  Service upon said attorney shall be sufficient service upon any such nonresident person, whether a foreign corporation that has been authorized to do business in this State by the commissioner of foreign corporations or not, and may be made by delivering duplicate attested copies of the process to the Secretary of State. When legal process against any such nonresident person shall be served upon the Secretary of State, he or she shall notify such nonresident person in the manner specified in 12 V.S.A. § 852 and shall collect the fee specified therein.
    4. 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.

    HISTORY: Amended 1959, No. 231 , § 5; 1971, No. 73 , § 29, eff. April 16, 1971; 1981, No. 31 , § 12; 2013, No. 14 , § 16.

    History

    Source.

    1949, No. 30 , § 2. V.S. 1947, § 1145. 1939, No. 35 , § 2.

    References in text.

    The references to the “commissioner of foreign corporations” and “ 11 V.S.A. § 692(3) ” are obsolete. 11 V.S.A. §§ 692 and 651, which provided that the Secretary of State was the commissioner of foreign corporations, were repealed by 1971, No. 237 (Adj. Sess.), § 100. For present provisions relating to foreign corporations, see 11A V.S.A. chapter 15.

    Amendments

    —2013. Section heading: Substituted “licensed wholesale dealers” for “wholesalers”.

    Subsec. (a): Inserted “licensed” preceding “wholesale”.

    —1981. Deleted “or any vending machine operator resident or located outside this state” preceding “complying” in subsec. (a), deleted former subsec. (b), redesignated former subsecs. (c) and (d) as subsecs. (b) and (c), and redesignated former subsec. (e) as subsec. (d) and substituted “furnishing of a bond” for “payment of the fee” preceding “specified” in that subsection.

    —1971. Subsec. (a): Inserted “or any vending machine operator resident or located outside this state” preceding “upon complying”.

    Subsec. (b): Substituted “$5,000.00” for “$1,000.00” in the first sentence.

    —1959. Subsec. (a): Inserted “on cigarettes” preceding “imposed”.

    § 7777. Records required; inspection and examination; assessment of tax deficiency.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.

    HISTORY: 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.

    History

    Source.

    V.S. 1947, § 1157. 1939, No. 35 , § 14.

    Amendments

    —2015. Subsec. (d): Deleted “or retail dealer” following “wholesale dealer”.

    —2013. Section amended generally.

    —2003. Subsec. (a): Amended generally.

    —2001 (Adj. Sess.) Subsecs. (b) and (c): Amended generally.

    Subsecs. (d)-(g): Added.

    —1995 (Adj. Sess.) Substituted “computed at the rate per annum established by the commissioner pursuant to section 3108 of this title on the unpaid amount of the tax liability for the period” for “at the rate of one percent per month” following “plus interest” in the first sentence of subsecs. (b) and (c), “the date of full payment of the liability” for “paid” following “due until” in the first sentence of subsec. (b) and “full payment of the liability” for “paid” following “due until” at the end of subsec. (c).

    —1981. Designated existing provisions of section as subsec. (a), inserted “and” preceding “each retail dealer” and deleted “and each vending machine operator” thereafter in the first sentence and inserted “or” preceding “retail dealer” and deleted “or vending machine operator” thereafter in the third sentence of that subsection and added subsecs. (b) and (c).

    —1971. Deleted “and” preceding “each retail dealer” and inserted “and each vending machine operator” thereafter in the first sentence and deleted “or” preceding “retail dealer” and inserted “or vending machine operator” thereafter in the third sentence.

    § 7778. Unstamped packages—Penalties.

    1. 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.
    2. 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.
    3. No person shall use more than once any stamp provided for and required by this chapter.
    4. 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.

    HISTORY: 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.

    History

    Source.

    V.S. 1947, § 1153. 1939, No. 35 , § 10.

    Amendments

    —1995. Section amended generally.

    —1981. In the first sentence, deleted “or vending machine operator” following “wholesale dealer” and “licensed” preceding “retail dealer” and deleted the last sentence.

    —1973 (Adj. Sess.) Deleted fourth sentence.

    —1971. Inserted “or vending machine operator” following “wholesale dealer” in the first sentence.

    —1965. Substituted “district” for “municipal” preceding “court” in the fourth sentence.

    § 7779. Seizure.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Amended 1981, No. 31 , § 15; 1995, No. 29 , § 16, eff. April 14, 1995; 2001, No. 140 (Adj. Sess.), § 39.

    History

    Source.

    V.S. 1947, § 1154. 1939, No. 35 , § 11.

    Amendments

    —2001 (Adj. Sess.) Added the subsec. (a) and (c) designations, substituted “24” for “twenty-four” near the end of the first sentence in subsec. (a), and added subsec. (b).

    —1995. Section amended generally.

    —1981. Deleted “licensed” preceding “retail dealer” in two places in the first sentence.

    § 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.

    HISTORY: Amended 1995, No. 29 , § 17, eff. April 14, 1995.

    History

    Source.

    V.S. 1947, § 1155. 1939, No. 35 , § 12.

    Revision note—

    At the end of the second sentence, substituted “sections 7782 and 7783 of this title” for “sections 7782 and 7783” to conform reference to V.S.A. style.

    Added “of this title” following “sections 7782 and 7783” at the end of the third sentence to conform reference to V.S.A. style.

    Amendments

    —1995. Section amended generally.

    § 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.

    HISTORY: 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.

    History

    Source.

    V.S. 1947, § 1158. 1939, No. 35 , § 15.

    Revision note—

    Reference to “auditor of accounts” changed to “finance director” pursuant to 1959, No. 328 (Adj. Sess.), § 8(b). See note under § 182 of this title.

    Reference to “finance director” changed to “commissioner of finance” to conform to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

    Reference to “commissioner of finance and information support” changed to “commissioner of finance and management” in light of Executive Order No. 35-87, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities and authority of the commissioner of that entity to the commissioner of the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

    Amendments

    —2009 (Adj. Sess.) Substituted “criminal division of the superior court” for “district court” in the last sentence.

    —1983 (Adj. Sess.). Act No. 195 substituted “commissioner of finance and information support” for “commissioner of finance” preceding “from the proper” in the fourth sentence.

    Act No. 230 deleted the former fourth, fifth and sixth sentences.

    —1973 (Adj. Sess.). Reference to “county court” in the fourth sentence changed to “superior court”.

    —1965. Substituted “district” for “municipal” preceding court in the last sentence.

    CROSS REFERENCES

    Enforcement of subpoenas issued by administrative agencies generally, see 3 V.S.A. § 809a .

    Modification of subpoenas or discovery orders issued by administrative agencies, see 3 V.S.A. § 809b .

    Fees of witnesses, see § 1551 of this title.

    Fees of sheriffs and other officers serving subpoenas, see § 1591 of this title.

    § 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.

    HISTORY: Amended 1959, No. 231 , § 6.

    History

    Source.

    V.S. 1947, § 1159. 1939, No. 35 , § 16.

    Amendments

    —1959. Amended last sentence by inserting “or tobacco products, or both” following “cigarettes”.

    § 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.

    HISTORY: 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.

    History

    Source.

    V.S. 1947, § 1160. 1939, No. 35 , § 17.

    Amendments

    —2013. Inserted “within 30 days” preceding “to the Superior Court” and deleted the former third through sixth sentences.

    —1997 (Adj. Sess.). Substituted the second sentence for former procedural provisions requiring a citation to the commissioner and a bond or recognizance from the appellant.

    —1973 (Adj. Sess.). Changed “county court” to “superior court” in the first sentence.

    1997 (Adj. Sess.) amendment. 1997, No. 161 (Adj. Sess.), § 26, provided in part that the amendment to this section shall be retroactive to January 1, 1998.

    CROSS REFERENCES

    Summons in civil action, see V.R.C.P. 4.

    ANNOTATIONS

    Foreign corporations.

    Unless expressly forbidden, a foreign corporation is entitled under principles of comity to access to the courts of Vermont; the denial of this right may, under certain circumstances, result in an unconstitutional restraint upon interstate commerce. Holbrook Grocery Co. v. Commissioner of Taxes, 115 Vt. 275, 57 A.2d 118, 1948 Vt. LEXIS 66 (1948).

    To be entitled to access to court of Vermont, foreign corporation must conform to statutory requirements for procedure that obtain here, and that do not arbitrarily subject it to burdensome requirements because of its origin, having no reasonable support in that fact, and are not laid on other suitors in like situation. Holbrook Grocery Co. v. Commissioner of Taxes, 115 Vt. 275, 57 A.2d 118, 1948 Vt. LEXIS 66 (1948).

    Jurisdiction.

    Requirements of valid appeal are statutory and jurisdiction of court to which the appeal taken depends upon a compliance therewith and cannot be conferred by agreement or waiver, express or implied. Holbrook Grocery Co. v. Commissioner of Taxes, 115 Vt. 275, 57 A.2d 118, 1948 Vt. LEXIS 66 (1948).

    Person aggrieved.

    Person aggrieved is one whose pecuniary interest is directly affected by the adjudication. Holbrook Grocery Co. v. Commissioner of Taxes, 115 Vt. 275, 57 A.2d 118, 1948 Vt. LEXIS 66 (1948).

    Requisites for appeal.

    To entitle a party to an appeal under this section, it must appear that there was previously an application to the Commissioner of Taxes, followed by his determination as to its sufficiency, or his decision upon the case presented on hearing. Holbrook Grocery Co. v. Commissioner of Taxes, 115 Vt. 275, 57 A.2d 118, 1948 Vt. LEXIS 66 (1948).

    § 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.

    HISTORY: Amended 1971, No. 199 (Adj. Sess.), § 17.

    History

    Source.

    V.S. 1947, § 1156. 1939, No. 35 , § 13.

    Amendments

    —1971 (Adj. Sess.). Deleted “in the state prison” following “imprisoned.”

    § 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.

    HISTORY: Added 1981, No. 31 , § 16; amended 2003, No. 14 , § 5; 2013, No. 14 , § 18.

    History

    Amendments

    —2013. Inserted “licensed” preceding “wholesale”, “33 V.S.A. chapter 19” preceding “subchapters 1A and 1B”; and deleted “of chapter 19 of Title 33” following “subchapters 1A and 1B” in two places.

    —2003. Section amended generally.

    § 7786. Gray marketed cigarettes.

    1. 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.
    2. 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.
    3. 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.
    4. 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.

    HISTORY: Added 1999, No. 101 (Adj. Sess.), § 2.

    History

    Legislative findings. 1999, No. 101 (Adj. Sess.), § 1, provided:

    “The General Assembly hereby finds that:

    “(1) Cigarette smoking presents serious public health concerns to the state and to the citizens of the state. The U.S. Surgeon General has determined that smoking causes lung cancer, heart disease, other serious diseases, and that there are hundreds of thousands of tobacco-related deaths each year. These diseases often do not appear until many years after the person in question begins smoking.

    “(2) It is the policy of Vermont that consumers be adequately informed about the adverse health effects of cigarette smoking by including the federally-mandated warning notices on each package of cigarettes.

    “(3) It is the policy of Vermont that manufacturers and importers of cigarettes shall not make any material misrepresentation of fact regarding the health consequences of using cigarettes, including compliance with applicable federal laws, regulations, and policies.

    “(4) It is the intent of the legislature to align state and federal laws, regulations, and policies relating to the manufacture, importation, and marketing of cigarettes; specifically, the federal Cigarette Labeling and Advertising Act (15 U.S.C. § 1331 et seq.) and 26 U.S.C. § 5754.

    “(5) The legislature finds that consumers and retailers purchasing cigarettes are entitled to be fully informed about any adverse health effects of cigarette smoking by inclusion of warning notices on each package of cigarettes and to be assured through appropriate enforcement measures that cigarettes they purchase in the state were manufactured for consumption within the United States.”

    Subchapter 4. Tobacco Products Tax

    § 7811. Imposition of tobacco products tax.

    1. 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.
    2. The tax established in this section shall not be imposed on cannabis-related supplies sold by a dispensary registered under 18 V.S.A. chapter 86 to registered patients and registered caregivers, as those terms are defined in 18 V.S.A. § 4472 .

    HISTORY: 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. 1 60 (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.

    History

    Revision note

    —2020. In subsec. (b), substituted “cannabis” for “marijuana” in accordance with 2019, No. 164 (Adj. Sess.), § 32 and 2019, No. 167 (Adj. Sess.), § 26.

    Amendments

    —2019. Added the subsec. (a) designation, and added subsec. (b).

    —2015. Substituted “$2.57 per ounce” for “$2.29 per ounce” twice and “$3.08 per package” for “$2.75 per package” following “smokeless tobacco, at the rate of”.

    —2013 (Adj. Sess.). Substituted “$2.29 per ounce” for “$1.87 per ounce” twice and “$2.75 per package” for “$2.24 per package” following “smokeless tobacco, at the rate of”.

    —2013. Section amended generally.

    —2011. Substituted “$2.17” for “$1.08” twice in the second sentence.

    —2009 (Adj. Sess.) Substituted “$1.87” for “$1.66” in two places and “$2.24” for “$1.99” and added “and cigars with a wholesale price greater than $1.08, which shall be taxed at the rate of $2.00 per cigar if the wholesale price of the cigar is greater than $1.08 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” in the second sentence.

    —2009. In the second sentence, substituted “is intended to be imposed only once upon the wholesale sale of any” for “on” after “Such tax”, substituted “product and” for “products”, substituted “92” for “41”, substituted “and new smokeless tobacco, which shall be taxed at the greater of $1.66 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 $1.99 per package” for “and is intended to be imposed only once upon any tobacco product” and made a minor punctuation change.

    —2007. Added the fifth sentence.

    —2005 (Adj. Sess.). In the first sentence, inserted “except roll-your-own tobacco and little cigars taxed under section 7771 of this title” following the first occurrence of “tobacco products”; and in the second sentence, inserted “for all tobacco products except snuff which shall be taxed at the rate of $1.49 per ounce, or fractional part thereof” following “wholesale price”.

    —1995. Substituted “41” for “twenty” preceding “percent” in the second sentence and deleted the fifth sentence.

    1995 amendment. 1995, No. 14 , § 19(2), eff. April 12, 1995, provided that the amendment to this section by § 7 of that act shall apply to tobacco products held by distributors and dealers on and after July 1, 1995.

    § 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.

    HISTORY: Added 1959, No. 231 , § 7; amended 1971, No. 73 , § 32, eff. April 16, 1971; 2015, No. 57 , § 79, eff. June 11, 2015.

    History

    Amendments

    —2015. Substituted “licensed wholesale dealer” for “distributor” wherever it appeared throughout the section, and inserted “retail” preceding “dealer” in three places.

    —1971. Deleted the fourth sentence.

    § 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.

    HISTORY: Added 1959, No. 231 , § 7; amended 1967, No. 346 (Adj. Sess.), § 5; 2015, No. 57 , § 80, eff. June 11, 2015.

    History

    Amendments

    —2015. Substituted “licensed wholesale dealer” for “distributor” in the section heading and in three places in the section.

    —1967 (Adj. Sess.). Section amended generally.

    § 7814. Floor stock tax.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2015. Subsec. (a): Substituted ‘2015” for “2014” in four places.

    Subsec. (b): Substituted “2015” for “2014” in seven places, and “$0.33 per stamp” for “$0.13 per stamp” at the end of the third sentence.

    —2013 (Adj. Sess.). Subsec. (a): Substituted “retail dealer” for “retailer” in five places, “2014” for “2006” in four places, and deleted “o’clock” following “12:01 a.m.” twice.

    Subsec. (b): Substituted “retail dealer” for “retailer” in three places, “2014” for “2011” in seven places, and “$0.13 per stamp” for “$0.38 per stamp” at the end of the third sentence.

    —2011. Subsec. (b): Amended generally.

    —2009. Subsec. (b): Deleted “o’clock” after “a.m.” and substituted “following enactment of this act” for “2006” throughout the subsection; and substituted “$0.25” for “$0.60” before “per” in the third sentence.

    —2005 (Adj. Sess.). Subsec. (a): Substituted “snuff” for “tobacco products” throughout, in the first sentence, substituted “in the amount by which the new tax exceeds the amount of the tax already paid on the snuff” for “at the rate of 21 percent of the wholesale price of each tobacco product”, in the second and third sentences, substituted “2006” for “1995” throughout, and in the fourth sentence, substituted “August 25, 2006” for “July 25, 1995”.

    Subsec. (b): Amended generally.

    —2001 (Adj. Sess.) Subsec. (b): 2002, No. 140 (Adj. Sess.), § 25, eff. July 1, 2002, substituted “July 1, 2002” for “July 1, 1995” throughout the subsection, substituted “24.5 mills for each cigarette” for “12 mills for each cigarette” in the second sentence, substituted “49 cents per stamp” for “24 cents per stamp” near the end of the third sentence, and substituted “September 25, 2002” for “July 25, 1995” throughout the subsection.

    Subsec. (b): 2002, No. 140 (Adj. Sess.), § 27, eff. July 1, 2003, substituted “July 1, 2003” for “July 1, 2002” throughout the subsection, substituted “13 mills for each cigarette” for “24.5 mills for each cigarette” in the second sentence, substituted “26 cents per stamp” for “49 cents per stamp” near the end of the third sentence, and substituted “September 25, 2003” for “September 25, 2002” throughout the subsection.

    —1995. Section amended generally.

    Effective date of 2002 amendment. 2001, No. 140 (Adj. Sess.), § 43(5) provides that § 27 of that act [which amends subsec. (b) of this section] shall take effect July 1, 2003.

    § 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.

    HISTORY: Added 1959, No. 231 , § 7; amended 1981, No. 31 , § 17; 2013, No. 14 , § 20.

    History

    Amendments

    —2013. Substituted “Licensed wholesale dealers” for “Distributor” in the section heading and amended section generally.

    —1981. Deleted the former third, fourth, and sixth sentences.

    § 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.

    HISTORY: Added 1959, No. 231 , § 7; amended 2013, No. 14 , § 21.

    History

    Amendments

    —2013. Section amended generally.

    § 7817. Determination of tax on failure to file return.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2013. Subsec. (a): Added the third and fourth sentence.

    —2007. Deleted former subsec. (a) and redesignated former subsecs. (b) and (c) as present subsecs. (a) and (b); added the second sentence in subsec. (a); and in subsec. (b), substituted “with subsection (a) of” for “with (a) or (b) of” in the first sentence.

    —1989 (Adj. Sess.). Subsec. (c): Substituted “60” for “20” and made other minor changes in punctuation in the first sentence.

    —1971. Section amended generally.

    2007 amendment. 2007, No. 81 , § 26(2), eff. June 11, 2007, provides that § 5 of that act, which amended this section, shall apply with regard to returns with a filing due date of July 1, 2004, or after.

    § 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.

    HISTORY: Added 1959, No. 231 , § 7.

    History

    Revision note—

    Reference to “an action of contract” changed to “a civil action” to conform to V.R.C.P., Rule 2 pursuant to 1971, No. 185 (Adj. Sess.), § 236(d). See note under 4 V.S.A. § 219 .

    Words “on this statute” changed to “under this section” in interest of clarity.

    § 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.

    HISTORY: Added 1959, No. 231 , § 7; amended 1983, No. 195 (Adj. Sess.), § 5(b); 2015, No. 57 , § 81, eff. June 11, 2015.

    History

    Revision note—

    Reference to “auditor of accounts” changed to “finance director” pursuant to 1959, No. 328 (Adj. Sess.), § 8(b). See note under § 182 of this title.

    Reference to “finance director” changed to “commissioner of finance” to conform to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

    Reference to “commissioner of finance and information support” changed to “commissioner of finance and management” in light of Executive Order No. 35-87, which provided for the abolition of the department of finance and information support and the transfer of the duties, responsibilities, and authority of the commissioner of that entity to the commissioner of the department of finance and management as established by the order. By its own terms, Executive Order No. 35-87 took effect on July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

    Amendments

    —2015. Inserted “licensed wholesale” preceding “dealer” in three places and made gender neutral changes.

    —1983 (Adj. Sess.). Substituted “commissioner of finance and information support” for “commissioner of finance” in the second sentence.

    § 7820. Repealed. 1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.

    History

    Former § 7820. Former § 7820, relating to civil penalties, was derived from 1959, No. 231 , § 7 and amended by 1965, No. 41 , § 2; 1979, No. 105 (Adj. Sess.), § 23 and 1981, No. 191 (Adj. Sess.), § 7. See also §§ 3202 and 3203 of this title, relating to interest and penalties.

    § 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 and regulations 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.

    HISTORY: Added 1959, No. 231 , § 7; amended 2015, No. 57 , § 82, eff. June 11, 2015.

    History

    References in text.

    Section 7733, referred to in the phrase “sections 7731-7734” in this section, was repealed by 1981, No. 31 , § 18.

    Amendments

    —2015. Substituted “person” for “distributor or dealer” preceding “who shall” and “adopted” for “promulgated” following “regulations” in the first sentence.

    § 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.

    HISTORY: 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.

    HISTORY: 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.

    History

    Amendments

    —2019. Substituted “General Fund” for “State Health Care Resources Fund established by 33 V.S.A. § 1901d ”.

    —2011 (Adj. Sess.) Deleted “and the Catamount fund established by 33 V.S.A. § 1986 ” from the end of the section.

    —2009. Added “and the Catamount fund established by section 1986 of Title 33” after “33.”

    —2005 (Adj. Sess.). Substituted “state health care resources fund established by section 1901d of Title 33” for “Vermont health access trust fund established by subchapter 3 of chapter 19 of Title 33”.

    —1999 (Adj. Sess.). Section amended generally.

    2019. 2019, No. 6 , § 105(a), provides: “Notwithstanding 1 V.S.A. § 214 or any other act or provision, Secs. 64-72 (State Health Care Resources Fund), 74 ( 32 V.S.A. § 10503 ), 75 ( 33 V.S.A. § 1951 ), and 76 ( 33 V.S.A. § 1956 ) and Sec. 85 amending 16 V.S.A. § 2857 shall take effect on passage and apply retroactively to July 1, 2018.”

    Chapter 207. Copyrighted Compositions

    §§ 7901-7905. Repealed. 1991, No. 167 (Adj. Sess.), § 66(2).

    History

    Former §§ 7901-7905. Former § 7901, relating to filing of contracts, was derived from V.S. 1947, § 1175; 1939, No. 32 , § 1, and amended by 1963, No. 37 , § 21.

    Former § 7902, relating to gross receipts tax, was derived from V.S. 1947, § 1176; 1939, No. 32 , § 2, and amended by 1979, No. 105 (Adj. Sess.), § 24.

    Former § 7903, relating to construction of chapter, was derived from V.S. 1947, § 1177, and 1939, No. 32 , § 3.

    Former § 7904, relating to penalty for violation of any provision of this chapter, was derived from V.S. 1947, § 1178; 1939 No. 32, § 4, and had been previously repealed by 1979, No. 105 (Adj. Sess.), § 25.

    Former § 7905, relating to penalties and interest for delinquent tax returns or payments, was derived from 1979, No. 105 (Adj. Sess.), § 26.

    Chapter 207. Cannabis Excise Tax

    § 7901. Section 7901 effective March 1, 2022. 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.

    HISTORY: Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.

    History

    Former § 7901. Former § 7901, relating to filing of contracts, was derived from V.S. 1947, § 1175; 1939, No. 32 , § 1, and amended by 1963, No. 37 , § 21. This section was previously repealed by 1991, No. 167 (Adj. Sess.), § 66(2).

    Revision note

    —2020. In subdivs. (1) and (3), substituted “ 7 V.S.A. § 831 ” for “section 831 of this title”, and subdivs. (2) and (4)-(7), substituted “ 7 V.S.A. § 861 ” for “section 861 of this title,” in light of the redesignation of chapter 207 in this title.

    § 7902. Section 7902 effective March 1, 2022. Cannabis excise tax.

    1. 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.
    2. 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.
    3. 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.
    4. 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, provided that the cannabis or cannabis product is sold only to registered qualifying patients directly or through their registered caregivers.

    HISTORY: Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.

    History

    Former § 7902. Former § 7902, relating to gross receipts tax, was derived from V.S. 1947, § 1176; 1939, No. 32 , § 2, and amended by 1979, No. 105 (Adj. Sess.), § 24. This section was previously repealed by 1991, No. 167 (Adj. Sess.), § 66(2).

    § 7903. Section 7903 effective March 1, 2022. Liability for tax.

    1. 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.
    2. 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.
    3. 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.
    4. 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.

    HISTORY: Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.

    History

    Former § 7903. Former § 7903, relating to construction of chapter, was derived from V.S. 1947, § 1177, and 1939, No. 32 , § 3. This section was previously repealed by 1991, No. 167 (Adj. Sess.), § 66(2).

    § 7904. Section 7904 effective March 1, 2022. Returns; records.

    1. 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.
    2. 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.

    HISTORY: Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.

    History

    Former § 7904. Former § 7904, relating to penalty for violation of any provision of this chapter, was derived from V.S. 1947, § 1178; 1939 No. 32, § 4, and had been previously repealed by 1979, No. 105 (Adj. Sess.), § 25. This section was previously repealed by 1991, No. 167 (Adj. Sess.), § 66(2).

    § 7905. Section 7905 effective March 1, 2022. Bundled transactions.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.

    History

    Former § 7905. Former § 7905, relating to penalties and interest for delinquent tax returns or payments, was derived from 1979, No. 105 (Adj. Sess.), § 26. This section was previously repealed by 1991, No. 167 (Adj. Sess.), § 66(2).

    § 7906. Section 7906 effective March 1, 2022. License.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.

    § 7907. Section 7907 effective March 1, 2022. Administration of the cannabis excise tax.

    1. 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.
    2. 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.

    HISTORY: Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.

    § 7908. Section 7908 effective March 1, 2022. 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.

    HISTORY: Added 2019, No. 164 (Adj. Sess.), § 14, eff. March 1, 2022.

    § 7909. Section 7909 effective March 1, 2022. Substance Misuse Prevention Funding.

    1. Thirty percent of the revenues raised by the cannabis excise tax imposed by section 7902 of this title, not to exceed $10,000,000.00 per fiscal year, shall be used to fund substance misuse prevention programming.
    2. If any General Fund appropriations for substance misuse prevention programming remain unexpended at the end of a fiscal year, that balance shall be carried forward and shall only be used for the purpose of funding substance misuse prevention programming in the subsequent fiscal year.
    3. Any appropriation balance carried forward pursuant to subsection (b) of this section shall be in addition to revenues allocated for substance misuse prevention programming pursuant to subsection (a) of this section.

    HISTORY: Added 2021, No. 62 , § 18, eff. March 1, 2022.

    History

    Effective date of enactment. 2021, No. 62 , § 20(a) provides that the enactment of this section shall take effect on March 1, 2022.

    History

    Editor’s note

    —2020. Chapter 207 was originally enacted as 7 V.S.A. ch. 207 by 2019, No. 164 (Adj. Sess.), § 14 but was redesignated as 32 V.S.A. ch. 207 for consistency with other taxation provisions of the V.S.A and with the chapter’s apparent internal references to other provisions of Title 32.

    Chapter 209. Corporation Fees

    §§ 8001-8005. Repealed. 1981 No. 217 (Adj. Sess.), § 11.

    History

    Former §§ 8001-8005. Former § 8001, relating to corporation organization fees, was derived from V.S. 1947, § 984; 1937, No. 30 , § 1; P.L. § 920; 1933, No. 26 , § 1; 1925, No. 81 , § 8; 1921, No. 42 ; G.L. § 1066; 1915, No. 60 , § 1; 1910, No. 143 , § 1; P.S. §§ 800-802; 1902, No. 67 , § 1; 1898, No. 19 , §§ 103, and amended by 1963, No. 37 , § 22; 1967, No. 278 (Adj. Sess.), § 22.

    Former § 8002, relating to fees for amending corporate charters and articles of association, was derived from V.S. 1947, § 985; P.L. § 921; 1919, No. 47 , § 1; G.L. § 1067; 1915, No. 60 , § 2; P.S. § 803; 1900, No. 15 , § 1, and amended by 1963, No. 37 , § 23; 1967, No. 278 (Adj. Sess.), § 23.

    Former § 8003, relating to foreign corporation fees, was derived from V.S. 1947, § 986; P.L. § 922; 1925, No. 29 , § 1; G.L. § 1068; 1915, No. 60 , § 3, and amended by 1963, No. 37 , § 24; 1967, No. 278 (Adj. Sess.), § 24; 1969, No. 159 (Adj. Sess.), § 1.

    Former § 8004, relating to valuation of non par shares, was derived from V.S. 1947, § 5812; P.L. § 5838; 1925, No. 81 , § 8.

    Former § 8005, relating to application of the chapter, was derived from V.S. 1947, § 987; P.L. § 923; G.L. § 1069; 1915, No. 60 , § 4.

    Chapter 211. Corporation Taxes

    Subchapter 1. General Provisions

    Article 1. Tax Imposed

    CROSS REFERENCES

    Corporations, partnerships, and associations, generally, see Title 11.

    Corporations, generally, see 11A V.S.A. chapter 1.

    § 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.

    HISTORY: Amended 1997, No. 156 (Adj. Sess.), § 10, eff. April 29, 1998.

    History

    Source.

    1951, No. 25 , V.S. 1947, § 1002. 1947, No. 20 , § 6. P.L. § 939. G.L. § 966. P.S. § 686. 1902, No. 20 , § 1, V.S. § 547. 1890, No. 3 , § 1. 1882, No. 1 , § 1. R. L. §§ 3662, 3663. 1880, No. 82 , §§ 1, 2.

    Amendments

    —1997 (Adj. Sess.). Deleted “express, telegraph, steamboat, car, and sleeping car companies” and “other corporations, persons, associations, societies or firms” from the list of entities subject to taxation.

    ANNOTATIONS

    Constitutionality of prior law.

    Act 1882, No. 1 , held unconstitutional to the extent that it taxed gross receipts from interstate business. Rutland R.R. v. Central Vermont R.R., 63 Vt. 1, 21 A. 262, 731, 1890 Vt. LEXIS 48 (1890).

    § 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.

    History

    Source.

    V.S. 1947, § 1003. P.L. § 940. G.L. § 967. P.S. § 687. 1904, No. 29 , § 28.

    Article 2. Returns and Payment of Tax

    § 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.

    History

    Source.

    V.S. 1947, § 999. P.L. § 936. G.L. § 980. P.S. § 696. R. 1906, § 645. 1902, No. 20 , § 3. V.S. § 549. 1890, No. 3 , § 1882, No. 1 , § 3.

    § 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.

    History

    Source.

    V.S. 1947, § 1000. P.L. § 937. G.L. § 981. P.S. § 697. 1902, No. 20 , § 4. V.S. § 550. 1890, No. 3 , § 4. 1882, No. 1 , § 4.

    Revision note—

    Deleted comma preceding “shall fill out” in the first sentence to correct a grammatical error.

    § 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.

    History

    Source.

    V.S. 1947, § 1001. 1943, No. 21 , § 1. P.L. § 938. G.L. § 982. P.S. § 698. 1904, No. 29 , § 1. 1902, No. 20 , § 5. V.S. § 551. 1890, No. 3 , § 5. 1884, No. 5 , § 1. 1882, No. 1 , § 5.

    § 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.

    History

    Source.

    V.S. 1947, § 1004. 1943, No. 21 , § 2. P.L. § 941. G.L. § 983. P.S. § 699. 1902, No. 20 , § 6. V.S. § 552. 1890, No. 3 , § 6. 1884, No. 5 , § 2. 1882, No. 1 , § 6.

    Article 3. Inspection and Examination

    § 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.

    History

    Source.

    V.S. 1947, § 993. P.L. § 929. G.L. § 973. P.S. § 689. R. 1906, § 638. 1902, No. 20 , § 65. V.S. § 590. 1890, No. 3 , § 43. 1882, No. 1 , § 26.

    § 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.

    History

    Source.

    V.S. 1947, § 994. P.L. § 930. G.L. § 974. P.S. § 690. R. 1906, § 639.

    Revision note—

    Deleted “in chancery” following “master” in the first sentence to conform reference to V.R.C.P. Rule 53 pursuant to No. 185 (Adj. Sess.), § 236(a). See note under 4 V.S.A. § 219 .

    § 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.

    History

    Source.

    V.S. 1947, § 995. P.L. § 931. G.L. § 975. P.S. § 691. R. 1906, § 640.

    CROSS REFERENCES

    Service of summons, see V.R.C.P. 4.

    § 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.

    HISTORY: Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.

    History

    Source.

    V.S. 1947, § 996. P.L. § 932. G.L. § 976. P.S. § 692. R. 1906, § 641.

    Amendments

    —1973 (Adj. Sess.). Changed “county court” to “Superior Court”.

    CROSS REFERENCES

    Fees of witnesses in Superior Court, see § 1551 of this title.

    § 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.

    History

    Source.

    V.S. 1947, § 997. P.L. § 933. G.L. § 977. P.S. § 693. R. 1906, § 642. 1902, No. 20 , § 66. V.S. § 591. 1890, No. 3 , § 44. 1881, No. 1 , § 27.

    Revision note—

    Words “as required by article 3 of this subchapter” were substituted for “with reference to such matters” in the first instance and inserted in the second instance, in order to clarify the section.

    § 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.

    HISTORY: Amended 2015, No. 57 , § 87, eff. June 11, 2015; 2015, No. 134 (Adj. Sess.), § 18, eff. May 25, 2016.

    History

    Source.

    V.S. 1947, § 998. P.L. § 934. G.L. § 978. P.S. § 694. 1902, No. 20 , § 67. V.S. § 592. 1890, No. 3 , § 45. 1882, No. 1 , § 28.

    Amendments

    —2015 (Adj. Sess.). In the second sentence, inserted “of this title” following “chapters 103 and 151” and “in section 3202 of chapter 103” following “interest and penalty”.

    —2015. Section amended generally.

    § 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.

    History

    Source.

    V.S. 1947, § 1007. P.L. § 944. G.L. § 987. P.S. § 703. R. 1906, § 652.

    § 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.

    History

    Source.

    V.S. 1947, § 1008. P.L. § 945. G.L. § 986. P.S. § 702. R. 1906, § 651. 1902, No. 20 , § 70.

    CROSS REFERENCES

    Punishment for perjury, see 13 V.S.A. § 2901 .

    Article 4. Penalties and Forfeitures

    § 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.

    HISTORY: 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.

    History

    Source.

    V.S. 1947, § 1006. P.L. § 943. G.L. § 985. 1917, No. 160 , § 2. P.S. § 701. 1904, No. 29 , § 2. 1902, No. 20 , §§ 8, 9. V.S. § 554. 1890, No. 3 , § 9. 1882, No. 1 , § 9.

    Amendments

    —2011 (Adj. Sess.). Substituted “commissioner of financial regulation” for “commissioner of banking, insurance, securities, and health care administration” throughout the section.

    —1995 (Adj. Sess.) Substituted “commissioner of banking, insurance, securities, and health care administration” for “commissioner of banking, insurance, and securities” wherever it appeared throughout the section.

    —1989 (Adj. Sess.). Substituted “commissioner of banking, insurance, and securities” for “commissioner of banking and insurance” wherever it appeared.

    CROSS REFERENCES

    Foreign corporations, generally, see 11A V.S.A. chapter 15.

    Article 5. Miscellaneous

    § 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.

    HISTORY: 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.

    History

    Source.

    V.S. 1947, § 1009. P.L. § 946. G.L. § 988. 1917, No. 254 , § 957. P.S. § 704. R. 1906, § 653. 1904, No. 29 , § 20. 1902, No. 20 , § 10. V.S. § 555. 1890, No. 3 , § 10. 1882, No. 1 , § 10.

    Revision note—

    References to “an action of contract” and “an action of tort” changed to “a civil action” to conform to V.R.C.P., Rule 2 pursuant to 1971, No. 185 (Adj. Sess.), § 236(d). See note under 4 V.S.A. § 219 .

    Amendments

    —2009 (Adj. Sess.) Deleted “or district” following “superior” in the first sentence.

    —1973 (Adj. Sess.). Changed “county” to “superior” preceding “or district” in the first sentence.

    —1965. Substituted “district” for “municipal” court in the first sentence.

    § 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.

    History

    Source.

    V.S. 1947, § 1051. P.L. § 1024. G.L. § 1065. P.S. § 798. 1902, No. 20 , § 69. V.S. § 594. 1890, No. 3 , § 49. 1882, no. 1, § 43.

    Subchapter 2. Railroads

    Article 1. Assessment and Payment of Tax

    § 8211. Rate of tax and time of payment.

    1. For each taxable year, there is hereby assessed upon 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 of the appraised value thereof, obtained and established as hereinafter provided.  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 October 15 following, by the person or corporation then owning or operating such railroad.  The remaining one-half of such tax covering the six months ending with December 31 in each year shall be paid to the Commissioner on or before April 15 following, by the person or corporation then owning or operating such railroad.
    2. 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.

    HISTORY: Amended 1971, No. 79 , § 1, eff. date, see note set out below.

    History

    Source.

    V.S. 1947, § 1023. 1943, No. 21 , § 4. 1941, No. 20 , § 1. 1939, No. 28 , § 1. 1935 S., No. 2, § P.L. § 959. G.L. § 1001. 1908, No. 28 , § 1. P.S. § 713. 1904, No. 29 , § 4. 1902, No. 20 , § 19. V.S. § 559. 1890, No. 3 , § 14. 1882, No. 1 , §§ 12, 13.

    Revision note—

    In subsec. (a), “hereinafter” substituted for “hereinbefore” to conform with the rearrangement of this chapter.

    Amendments

    —1971. Designated the existing provisions of the section as subsec. (a), substituted “taxable year” for “fiscal year beginning with January 1” preceding “there is” in the first sentence of that subsection and added subsec. (b).

    Effective date of amendments—

    1971 amendment. 1971, No. 79 , § 2, provided: “This act [which amended this section] shall take effect for the taxable year 1971 and succeeding years, and the first payment of tax revenues under this act to the towns shall be made not later than May 15, 1972.”

    CROSS REFERENCES

    Exemption of railroad property from local taxation, see § 3803 of this title.

    ANNOTATIONS

    Nature of tax.

    Taxes assessed against street railway company under this section and §§ 8261, 8281-8286 of this title on appraised value of its property, acquired, constructed, or used for railroad business or purposes, including franchises, rights of way, etc., were properly given priority in receivership proceedings, such a tax being a property tax and not a franchise tax. Westinghouse Electric Mfg. Co. v. Barre & Montpelier Traction & Power Co., 98 Vt. 130, 126 A. 594, 1924 Vt. LEXIS 148 (1924).

    Notes to Opinions

    Abandonment.

    During the process abandonment and winding up, when trains have ceased to run, railroad corporation is still operating and owning a railroad and subject to State tax only under this section. 1964-66 Vt. Op. Att'y Gen. 227.

    Construction with other laws.

    This section and § 3803 of this title refer to the same general subject matter and thus are to be read in pari materia. 1964-66 Vt. Op. Att'y Gen. 227.

    State-owned property.

    The Legislature never intended to force a tax payment under the terms of this section when the tax would come from the State itself, since, as a matter of public policy, the State should not be required to incur administrative expense in the tax and public service departments by paying itself taxes. 1964-66 Vt. Op. Att'y Gen. 211.

    Railroad property owned by the State and leased to others for nonrailroad purposes is exempt from both State and local taxation. 1964-66 Vt. Op. Att'y Gen. 211.

    § 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.

    History

    Source.

    V.S. 1947, § 1024. P.L. § 960. G.L. § 1002. 1912, No. 50 , § 2. P.S. § 718. 1902, No. 20 , § 22. V.S. § 564. 1890, No. 3 , § 19. 1882, No. 1 , § 14.

    ANNOTATIONS

    Constitutionality.

    Provision that in case of railroad operated under lease, tax shall be paid by lessee and deducted from rent covenanted for in lease, is not unconstitutional as against the lessor in that it impairs the obligation of contact, as the State may adopt that method of collecting the tax from the lessor. Rutland R.R. v. Central Vermont R.R., 63 Vt. 1, 21 A. 262, 731, 1890 Vt. LEXIS 48 (1890).

    Article 2. Report of Earnings

    § 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. Such report shall show, among other things, the amount of gross and net earnings of such person or corporation. If any portion of such railroad is without this State, such returns shall give the amount of gross and net earnings per mile of such 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, such returns shall also give the amount paid for rental thereof and any other matter required by the Commissioner to carry out the provisions of this chapter. Whenever required in writing by the Commissioner, such person or corporation shall render a sworn statement of such other and further facts relating to its financial or physical condition as shall be required by him or her in making the appraisal hereinafter mentioned.

    HISTORY: Amended 1975, No. 43 , § 1, eff. April 14, 1975.

    History

    Source.

    V.S. 1947, § 1011. P.L. § 948. G.L. § 990. P.S. § 705. 1902, No. 20 , § 11 V.S. § 556. 1890, No. 3 , § 11. 1886, No. 3 . 1882, No. 1 , § 11.

    Amendments

    —1975. In the first sentence substituted “July 1” for “September 15”, inserted “a sworn copy of the Interstate commerce commission report” and substituted “December 31” for “June 30”.

    § 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.

    HISTORY: Amended 1975, No. 43 , § 2, eff. April 14, 1975.

    History

    Source.

    V.S. 1947, § 1012. P.L. § 977. 1923, No. 29 , § 1.

    Amendments

    —1975. Substituted “December 31” for “June 30” in two places.

    Article 3. Definition of Appraisal Terms

    § 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.

    History

    Source.

    V.S. 1947, § 1013. P.L. § 949. G.L. § 991. 1917, No. 254 , § 960. 1912, No. 51 , § 7.

    ANNOTATIONS

    Nature of tax.

    Taxes assessed against a street railway company under this section and §§ 8211, 8281-8286 of this title, on the appraised value of its property, acquired, constructed, or used for railroad business or purposes, including franchises, rights of way, etc., were properly given priority in receivership proceedings, such a tax being a property tax and not a franchise tax. Westinghouse Electric Mfg. Co. v. Barre & Montpelier Traction & Power Co., 98 Vt. 130, 126 A. 594, 1924 Vt. LEXIS 148 (1924).

    Article 4. Appraisal of Railroad Property Generally

    § 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.

    HISTORY: Amended 1977, No. 105 , § 14(a).

    History

    Source.

    V.S. 1947, § 1914(I). P.L. § 950. G.L. § 992. 1917, No. 254 , § 961. 1912, No. 50 , §§ 5, 10. 1912, No. 51 , §§ 1, 9. P.S. § 706. 1902, No. 20 , § 12. V.S. § 557. 1894, No. 6 , § 1. 1890, No. 3 , § 12. 1912, No. 50 , § 4. 1908, No. 29 , § 3.

    References in text.

    The Director, referred to in this section, means the Director of the Division of Property Valuation and Review as defined in § 3007 of this title.

    Amendments

    —1977. Substituted “director” for “commissioner”.

    CROSS REFERENCES

    Exemption of railroad property from local taxation, see § 3803 of this title.

    ANNOTATIONS

    Constitutionality.

    Equal protection of the law is achieved by appraisal of all railroad properties at fair market value. In re Montpelier & Barre R.R., 135 Vt. 102, 369 A.2d 1379, 1977 Vt. LEXIS 566 (1977).

    Statutory standard of “fair and just value” as used in this section is not constitutionally infirm in regard to constitutional provision that every member of society is bound to contribute his proportion toward the expenses required to provide him with the protections guaranteed him by that Constitution. In re Montpelier & Barre R.R., 135 Vt. 102, 369 A.2d 1379, 1977 Vt. LEXIS 566 (1977).

    Fair and just value.

    Fair market value is the appropriate construction of “fair and just value” in the context of this section. In re Montpelier & Barre R.R., 135 Vt. 102, 369 A.2d 1379, 1977 Vt. LEXIS 566 (1977).

    Nature of tax.

    Taxes assessed against a street railway company under this article and §§ 8211 and 8261 of this title, on the appraised value of property, acquired, constructed, or used for railroad business or purposes, including franchises, rights of way, etc., were properly given priority in receivership proceedings, such a tax being a property tax and not a franchise tax. Westinghouse Electric Mfg. Co. v. Barre & Montpelier Traction & Power Co., 98 Vt. 130, 126 A. 594, 1924 Vt. LEXIS 148 (1924).

    § 8282. Road operating within and outside the State.

    When a person or corporation operates a line of railroad located partly within and partly without 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 such line of railroad. In making such appraisal, the Director may take into consideration the value of the entire railroad system operated by such person or corporation; the mileage thereof both within and outside this State; its engines, cars, and other equipment; and other information, facts, and circumstances as will aid him or her therein.

    HISTORY: Amended 1977, No. 105 , § 14(a).

    History

    Source.

    V.S. 1947, § 1014(II). P.L. § 950. G.L. § 992. 1917, No. 254 , § 961. 1912, No. 50 , §§ 5, 10. 1912, No. 51 , §§ 1, 9. P.S. § 706. 1902, No. 20 , § 12. V.S. § 557. 1894, No. 6 , § 6, 1. 1890, No. 3 , § 12. 1912, No. 50 , § 4. 1908, No. 29 , § 3.

    Amendments

    —1977. Substituted “director” for “commissioner”.

    § 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.

    HISTORY: Amended 1977, No. 105 , § 14(a).

    History

    Source.

    V.S. 1947, § 1014(IV). P.L. § 950. G.L. § 992. 1917, No. 254 , § 961. 1912, No. 50 , §§ 5, 10. 1912, No. 51 , §§ 1, 9. P.S. § 706. 1902, No. 20 , § 12. V.S. § 557. 1894, No. 6 , § 1. 1890, No. 3 , § 12. 1912, No. 50 , § 4. 1908, No. 29 , § 3.

    Amendments

    —1977. Substituted “director” for “commissioner” in the first sentence.

    § 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.

    History

    Source.

    V.S. 1947, § 1014(V). P.L. § 950. G.L. § 992. 1917, No. 254 , § 961. 1912, No. 50 , §§ 5, 10. 1912, No. 51 , §§ 1, 9. P.S. § 706. 1902, No. 20 , § 12. V.S. § 557. 1894, No. 6 , § 1. 1890, No. 3 , § 12. 1912, No. 50 , § 4. 1908, No. 29 , § 3.

    § 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.

    HISTORY: Amended 1977, No. 105 , § 14(a).

    History

    Source.

    V.S. 1947, § 1014(III). P.L. § 950. G.L. § 992. 1917, No. 254 , § 961. 1912, No. 50 , §§ 5, 10. 1912, No. 51 , §§ 1, 9. P.S. § 706. 1902, No. 20 , § 12. V.S. § 557. 1894, No. 6 , § 1. 1890, No. 3 , § 12. 1912, No. 50 , § 4. 1908, No. 29 , § 3.

    Amendments

    —1977. Substituted “director” for “commissioner” in the first sentence.

    § 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.

    HISTORY: Amended 1959, No. 28 , eff. March 11, 1959; 1989, No. 222 (Adj. Sess.), § 32, eff. May 31, 1990.

    History

    Source.

    V.S. 1947, § 1014(VI). P.L. § 950. G.L. § 992. 1917, No. 254 , § 961. 1912, No. 50 , §§ 5, 10. 1912, No. 51 , §§ 1, 9. P.S. § 706. 1902, No. 20 , § 12. V.S. § 557. 1894, No. 6 , § 1. 1890, No. 3 , § 12. 1912, No. 50 , § 4. 1908, No. 29 , § 3.

    Amendments

    —1989 (Adj. Sess.). Added the second sentence.

    —1959. Added the second and third sentences.

    1989 (Adj. Sess.) amendment. 1989, No. 222 (Adj. Sess.), § 44(1), eff. May 31, 1990, provided that the amendment to this section by § 32 of that act would apply to taxable years beginning on or after Jan. 1, 1990.

    Article 5. Appraisal of Electric Plants and Transmission Lines

    §§ 8301-8306. Repealed. 1997, No. 156 (Adj. Sess.), § 11, eff. April 29, 1998.

    History

    Former §§ 8301-8306. Former §§ 8301-8306, relating to appraisal of electric plants and transmission lines, were derived from V.S. 1947, § 1015; P.L. § 951; G.L. § 993; 1912, No. 51 , § 2; P.S. § 707; 1902, No. 20 , § 13; V.S. § 558; 1890, No. 3 , § 13; 1882, No. 1 , § 11; and amended by 1983, No. 195 (Adj. Sess.), § 5(b).

    Article 6. Time for Appraisals

    § 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.

    HISTORY: Amended 1975, No. 43 , § 3, eff. April 14, 1975; 1997, No. 156 (Adj. Sess.), § 12, eff. April 29, 1998.

    History

    Source.

    V.S. 1947, § 1016(I). 1937, No. 31 . P.L. § 952. G.L. § 994. 1917, No. 254 , § 963. 1912, No. 51 , § 3. P.S. § 708. R. 1906, § 657. 1902, No. 20 , § 14.

    Amendments

    —1997 (Adj. Sess.). Deleted “and article 5” after “article 4”.

    —1975. Inserted “article 4 and” preceding “article 5”.

    § 8322. Subsequent appraisals.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Amended 1997, No. 156 (Adj. Sess.), § 13, eff. April 29, 1998.

    History

    Source.

    V.S. 1947, § 1016(II)-(IV). 1937, No. 31 . P.L. § 952. G.L. § 994. 1917, No. 254 , § 963. 1912, No. 51 , § 3. P.S. § 708. R. 1906, § 657. 1902, No. 20 , § 14.

    Amendments

    —1997 (Adj. Sess.). Subsec. (b): Deleted “or 5” after “article 4”.

    Article 7. Records and Notice of Appraisal

    § 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.

    HISTORY: Amended 1997, No. 156 (Adj. Sess.), § 14, eff. April 29, 1998.

    History

    Source.

    V.S. 1947, § 1017. 1943, No. 21 , § 3. P.L. § 953. G.L. § 995. 1912, No. 51 , § 4. P.S. § 709. 1902, No. 20 , § 15.

    Amendments

    —1997 (Adj. Sess.). Substituted “articles 4 and 6” for “articles 4, 5 and 6” and substituted “the commissioner’s” for “his”.

    § 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.

    History

    Source.

    V.S. 1947, § 1018. P.L. § 954. G.L. § 996. 1912, No. 51 , § 4.

    § 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.

    HISTORY: Amended 1997, No. 156 (Adj. Sess.), § 15, eff. April 29, 1998.

    History

    Source.

    V.S. 1947, § 1019. P.L. § 955. G.L. § 997. 1912, No. 51 , § 5. P.S. § 710. 1902, No. 20 , § 16. V.S. § 560. 1890, No. 3 , § 15.

    Amendments

    —1997 (Adj. Sess.). Substituted “articles 4 and 6” for “articles 4, 5 and 6” in the first sentence.

    § 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.

    History

    Source.

    V.S. 1947, § 1020. P.L. § 956. G.L. § 998. 1912, No. 51 , § 8.

    Article 8. Appeals from Appraisals

    § 8361. General rules for appeals.

    1. 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 administrative judge, not excluding himself or herself, who shall hear such appeal.
    2. 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.
    3. 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.
    4. 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.
    5. A party aggrieved by any action of the Superior judge may appeal to the Supreme Court.

    HISTORY: 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.

    History

    Source.

    V.S. 1947, § 1021. 1945, No. 15 , §§ 1, 2. P.L. § 957. G.L. § 999. 1917, No. 254 , § 968. 1912, No. 51 , § 6. P.S. § 711. 1902, No. 20 , § 17. V.S. § 561. 1890, No. 3 , § 16.

    References in text.

    With respect to “all property required to be appraised by the commissioner under the provisions of sections 8281-8286,” referred to in subsec. (c), appraisals under sections 8281-8286 have been made by the director of property valuation and review since July 1, 1977 pursuant to 1977, No. 105 , § 14(a).

    Amendments

    —1997 (Adj. Sess.). Subsec. (c): Deleted “8301-8306” from the list of code sections in the first sentence.

    —1979 (Adj. Sess.). Subsec. (a): Substituted “administrative” for “chief superior” judge in the first sentence and deleted the second sentence.

    —1973. Substituted “superior judge designated by the chief superior judge, not excluding himself, who” for “board consisting of the chief superior judge and two superior judges named by him who shall be sworn and” preceding “shall hear” in the first sentence and substituted “superior judge” for “chief superior judge shall be chairman of the board and” preceding “shall have” in the second sentence in subsec. (a) and substituted “superior judge” for “board” wherever it appeared in subsecs. (b) through (e).

    —1971 (Adj. Sess.). Subsec. (e): Amended generally.

    § 8362. Procedure.

    Such judge shall establish such rules and regulations relative to the time and method of hearing and determining such appeals as he or she shall deem just, provided that such appeal shall be finally determined and the appraisal by the judge made and established on or before June 1 following such appeals. The cost of such 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 therein. In case of such disqualification, the State shall be represented by the State Treasurer and by such counsel as he or she may select with the approval of the Governor. Such counsel shall be paid upon a warrant issued by the Commissioner of Finance and Management.

    HISTORY: Amended 1983, No. 195 (Adj. Sess.), § 5(b).

    History

    Source.

    V.S. 1947, § 1022. 1945, No. 15 , § 3. P.L. § 958. 1931, No. 11 , § 1. G.L. § 1000. P.S. § 712. 1904, No. 29 , § 3. 1902, No. 20 , § 38. V.S. § 561. 1890, No. 3 , § 16.

    Revision note—

    Reference to “auditor of accounts” changed to “finance director” pursuant to 1959, No. 328 (Adj. Sess.), § 8(b). See note under § 182 of this title.

    Reference to “finance director” changed to “commissioner of finance” to conform to new title and reorganization of State government pursuant to 1971, No. 92 . See 3 V.S.A. chapter 45.

    Reference to “commissioner of finance and information support” changed to “commissioner of finance and management” in light of Executive Order No. 35-87, which provided for the abolition of the department of budget and management and the transfer of authorized positions and equipment to the department of finance and management as established by the Order. However, the Order further provided for the equipment and classified position of administrative secretary in the department of budget and management prior to the abolition of that entity to be transferred to the office of the secretary of administration, and the commissioner of former department to become the deputy secretary of administration. By its own terms, Executive Order No. 35-87 took effect July 1, 1987, pursuant to 3 V.S.A. § 2002 . Executive Order No. 35-87 was revoked and rescinded by E.O. 06-05 (No. 3-46).

    Reference to “board” in three places changed to “judge” and “it” to “he” in light of amendment to § 8361 by 1973, No. 106 , § 13.

    Amendments

    —1983 (Adj. Sess.). Substituted “commissioner of finance and information support” for “commissioner of finance” in the fifth sentence.

    § 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.

    HISTORY: Amended 1997, No. 156 (Adj. Sess.), § 17, eff. April 29, 1998.

    History

    Source.

    V.S. 1947, § 1010. P.L. § 947. G.L. § 989. 1917, No. 254 , § 958. 1912, No. 51 , § 10.

    Amendments

    —1997 (Adj. Sess.). Substituted “articles 4 and 6” for “articles 4, 5 and 6”.

    Article 9. Petition and Hearing for Relief

    History

    Revision note—

    Article 9 heading was changed from “Railroad Tax Board” to “Petition and hearing for relief” Since such Board was abolished by 1961, No. 275 , § 4, and new heading describes better the subject matter of sections in Article 9.

    §§ 8391-8393. Repealed. 1961, No. 275, § 4, eff. Aug. 1, 1961.

    History

    Former §§ 8391-8393. Former §§ 8391-8393, relating to appointment, expenses, and powers of the railroad tax board, were derived from V.S. 1947, §§ 1025, 1026, 1031; 1939, No. 29 , §§ 2, 3, 8.

    § 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.

    HISTORY: Amended 1961, No. 275 , § 1, eff. Aug. 1, 1961.

    History

    Source.

    V.S. 1947, § 1027. 1939, No. 29 , § 4.

    Revision note

    —2017. Substituted “Public Utility Commission” for “Public Service Board” in accordance with 2017, No. 53 , § 12.

    Amendments

    —1961. Deleted “of the receiver” following “petition”, substituted “operating a railroad located in whole or in part within this state” for “which is in or shall go into receivership, filed prior to the date when taxes hereinafter referred to shall become due and payable” preceding “setting forth”, deleted “enforced” preceding “payment” and “subsequent to January 1, 1939” preceding “under” and substituted “the public service board” for “such commission” preceding “shall fix”.

    § 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.

    HISTORY: Amended 1961, No. 275 , § 2, eff. Aug. 1, 1961.

    History

    Source.

    V.S. 1947, § 1028. 1941, No. 21 , § 2. 1939, No. 29 , § 5.

    Revision note

    —2017. Substituted “Commission” for “Board” in accordance with 2017, No. 53 , § 12.

    Amendments

    —1961. Deleted “such” preceding “hearing”, substituted “the board finds” for “such commission shall find” preceding “that the enforced” and “the” for “such” preceding “railroad” and deleted “until February 1, 1943” preceding “would promote” and “in respect thereto” following “findings” in the first sentence, rewrote the second sentence and added the third and fourth sentences.

    § 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.

    History

    Source.

    V.S. 1947, § 1029. 1939, No. 29 , § 6.

    Revision note

    —2017. Substituted “Commission” for “Board” in accordance with 2017, No. 53 , § 12.

    § 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.

    HISTORY: Amended 1961, No. 275 , § 3, eff. Aug. 1, 1961.

    History

    Source.

    V.S. 1947, § 1030. 1939, No. 29 , § 7.

    Revision note

    —2017. Substituted “Commission” for “Board” in accordance with 2017, No. 53 , § 12.

    Amendments

    —1961. “Commission” was changed to “board”.

    § 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.

    History

    Source.

    V.S. 1947, § 1032. 1939, No. 29 , § 9.

    Subchapter 3. Steamboat, Car, and Transportation Companies

    History

    Repeal of subchapter. 2003, No. 152 (Adj. Sess.), § 9, eff. June 7, 2004, provided: “Subchapter 3 of chapter 211 of Title 32 [comprising sections 8431-8435 of this title] (franchise tax on car and transportation companies) is repealed for taxable years beginning on or after January 1, 2006.”

    §§ 8431-8435. Repealed. 2006, No. 152 (Adj. Sess.), § 9, eff. June 7, 2006.

    History

    Former §§ 8431-8435. Former § 8431, relating to returns and content, was derived from V.S. 1947, § 1033; P.L. § 961; G.L. § 1005; 1917, No. 254 , § 974; P.S. § 721; 1902, No. 20 , § 23; V.S. § 572; 1890, No. 3 , § 25; 1882, No. 1 , § 25 and amended by 1975, No. 43 , § 4; 1997, No. 156 (Adj. Sess.), § 17a.

    Former § 8432, relating to appraisals, was derived from 1949, No. 27 , § 2; V.S. 1947, § 1034; P.L. § 962. G.L. § 1006; 1917, No. 254 , § 975; P.S. § 722; 1904, No. 29 , § 7; 1902, No. 20 , § 24; V.S. § 572; 1890, No. 3 , § 25; 1882, No. 1 , § 25 and amended by 1975, No. 43 , § 5.

    Former § 8433, relating to imposition and rate of tax, was derived from V.S. 1947, § 1035; 1943, No. 21 , § 5. P.L. § 963; G.L. § 1007; 1912, No. 52 , § 2; P.S. § 723; 1904, No. 29 , § 8, 1902, No. 20 , § 25; V.S. § 573; 1890, No. 23 , § 26; 1882, No. 1 , § 25.

    Former § 8434, relating to steamboat operator liability for franchise tax, was derived from V.S. 1947, § 1036; P.L. § 964; G.L. § 1008; 1912, No. 52 , § 3; P.S. § 725; R. 1906, § 670; 1902, No. 20 , § 27 and had been formerly repealed by 1997, No. 156 (Adj. Sess.), § 11.

    Former § 8435, relating to no sharing of certain revenues with towns, was derived from 1975, No. 43 , § 6.

    Subchapter 4. Express Companies

    § 8461. Repealed. 1997, No. 156 (Adj. Sess.), § 18, eff. April 29, 1998.

    History

    Former § 8461. Former § 8461, relating to taxes on express companies, was derived from V.S. 1947, § 1037; P.L. § 970; G.L. § 1014; 1915, No. 56 , § 1; 1912, No. 54 , § 1; P.S. § 731; 1906, No. 39 , § 1; 1904, No. 29 , § 11; 1902, No. 20 , § 29; V.S. § 571; 1890, No. 3 , § 24; 1882, No. 1 , §§ 21, 24; R.L. § 3662.

    Subchapter 5. Telegraph Companies

    §§ 8491-8493. Repealed. 1997, No. 156 (Adj. Sess.), § 18, eff. April 29, 1998.

    History

    Former §§ 8491-8493. Former §§ 8491-8493, relating to a tax on telegraph companies, were derived from V.S. 1947, §§ 1038-1040; P.L. §§ 973-975; 1927, No. 22 , § 1; G.L. §§ 1017-1019; 1912, No. 55 , §§ 1, 2; P.S. §§ 734-736; 1902, No. 20 , §§ 30-32; V.S. §§ 566-568; 1892, No. 15 , §§ 1-3; 1890, No. 3 , § 21; 1882, No. 1 , §§ 22-24; R.L. § 3663.

    Subchapter 6. Telephone Companies

    § 8521. Imposition and rate of tax.

    1. There is hereby assessed, upon each person or corporation owning or operating a telephone line or business within the State, a tax equal to 2.37 percent of net book value as of the preceding December 31 of all personal property of the taxpayer located within the State. The tax shall be paid to the Commissioner in equal monthly installments on or before the 25th day of each month of each taxable year.
    2. For tax years beginning after July 1, 1983, “a person or corporation owning or operating a telephone line or business,” as used in this chapter, shall not include a person or corporation that is engaged in the resale of telephone transmission capacity but does not own or operate any telephone lines or transmission facilities within the State, but such person or corporation engaging in the resale of telephone transmission capacity shall be subject to income taxation under chapter 151 of this title.
    3. The tax imposed by this section shall be in addition to any other taxes imposed by law, including the income tax imposed under chapter 151 of this title.
    4. All the 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 the tax imposed by this chapter.
    5. There is hereby assessed, upon each person or corporation owning or operating a telephone line or business that received in calendar year 1990 at least $20 million in annual gross operating revenues within the State, a tax on its entire gross operating revenues from the State for the periods from July 1, 1991 through June 30, 1992. The tax for each separate fiscal year shall be determined by subtracting from an amount equal to 51/4 percent of the taxpayer’s gross operating revenues from the State for the fiscal year ending June 30, 1992, the total amount of tax paid by such persons or corporations under subsection (a) of this section during the fiscal year ending June 30, 1992, the amount of tax paid by such persons or corporations under chapter 151 of this title during the fiscal year ending June 30, 1992. The tax imposed by this subsection shall be paid to the Commissioner on or before June 30 of each year.  The tax imposed by this subsection shall expire June 30, 1992.
    6. When personal property is transferred during the year from a person or corporation subject to a tax imposed by this subchapter to another person or corporation that operates or will operate a telephone line or business in the State:
      1. for months beginning after the date of transfer, the transferee shall include the net book value of the transferred property as of the date of transfer in the calculation of the tax due under subsection (a) of this section and the transferor shall exclude such value from its calculation of its tax under subsection (a); and
      2. for the month during which the transfer occurs, the transferor shall include the net book value of the transferred property as of the preceding December 31 multiplied by the number of days during the month it owned the property and divided by the total number of days in the month, and the transferee shall include the net book value of the property as of the date of transfer multiplied by the number of days during the month it owned the property divided by the number of days in the month.

    HISTORY: 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.

    History

    Source.

    V.S. 1947, § 1041. 1947, No. 20 , § 2.

    References in text.

    In subsec. (c), deleted “, but not limited to,” following “including” in accordance with 2013, No. 5 , § 4.

    Amendments

    —2015 (Adj. Sess.). Subsec. (a): Amended generally.

    Subsec. (f): Substituted “that operates” for “who operates”.

    Subdiv. (f)(1): Substituted “months beginning” for “quarters beginning”.

    Subdiv. (f)(2): Substituted “month” for “quarter” five times.

    —1995 (Adj. Sess.) Subsec. (f): Added.

    —1995. Subsec. (a): Substituted “twenty-fifth” for “thirtieth” preceding “day” in the second sentence.

    —1991. Subsec. (e): Substituted “1990” for “1987” preceding “at least”, “$ 20” for “$ 50” thereafter, deleted “its operations within” preceding “the state for the periods” and substituted “from July 1, 1991 through June 30, 1992” for “from July 1, 1988 through June 30, 1989, from July 1, 1989 through June 30, 1990, and from July 1, 1990 to June 30, 1991” thereafter in the first sentence, rewrote the second sentence, and substituted “1992” for “1991” following “June 30” in the third sentence.

    —1987 (Adj. Sess.). Section amended generally.

    —1985 (Adj. Sess.). Added the second sentence.

    —1969. Increased tax.

    —1961. Section amended generally.

    § 8522. Alternative tax.

    1. A person or corporation owning or operating a telephone line or business that received in the preceding taxable year less than $50 million in annual gross operating revenues within the State may, in lieu of the tax imposed in section 8521 of this title and any income tax imposed under chapter 151 of this title, elect to pay to the State a tax equal to the percentage as set forth herein of its entire gross operating revenues from its operations within the State for the fiscal year ending June 30.  Where the gross operating revenues during the quarter exceed  $250.00 and do not exceed $1,250.00, the tax shall be 21/4 percent; exceed $1,250.00 and do not exceed $2,500.00, the tax shall be 21/2 percent; exceed $2,500.00, and do not exceed $5,000.00, the tax shall be 23/4 percent; exceed $5,000.00 and do not exceed $10,000.00, the tax shall be 3 percent; and the rate of tax shall be increased 1/4 of 1 percent for each additional $5,000.00 or fractional part thereof of such gross operating revenue. However, the rate shall in no event exceed 51/4 percent of the gross operating revenues.
    2. The tax imposed by this section shall be paid to the Commissioner no later than 25 days following the last day of the third, sixth, ninth, and 12th month of each taxable year.
    3. For any taxable year, a taxpayer shall give notice of its election to pay the tax imposed by this section by filing a quarterly gross receipts tax return no later than 25 days following the last day of the third month of the taxable year. No election to pay the tax imposed by this section shall be made by a taxpayer that did not make the election in the previous year.

    HISTORY: 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.

    History

    Source.

    V.S. 1947, § 1042. 1947, No. 20 , § 3.

    Amendments

    —2003 (Adj. Sess.). Subsec. (c): Rewrote the second sentence.

    —1995. Substituted “25” for “30” following “no later than” in subsec. (b) and in the first sentence of subsec. (c).

    —1987 (Adj. Sess.) Section amended generally.

    —1969. Increased tax.

    —1961. Section amended generally.

    § 8523. Repealed. 1987, No. 210 (Adj. Sess.), § 3.

    History

    Former § 8523. Former § 8523, relating to returns, was derived from V.S. 1947, § 1043 and 1947, No. 20 , § 4, and amended by 1961, No. 118 , § 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.

    History

    Source.

    V.S. 1947, § 1045. 1939, No. 30 , §§ 1, 2. P.L. §§ 981, 983. 1921, No. 40 , § 1. G.L. § 1024. P.S. § 740. 1902, No. 20 , & 36. V.S. § 579. 1890, No. 3 , § 31. 1884, No. 5 , §§ 2, 4. 1882, No. 1 , § 15.

    CROSS REFERENCES

    Credit for contribution to Entrepreneurs’ Seed Capital Fund, see § 5830b of this title.

    Notes to Opinions

    Annuity premiums.

    The taxation of annuity premiums under this section is a close question and until the present statutory language is clarified, administrative officers ought to refrain from attempting to make or enforce such assessments. 1950-52 Vt. Op. Att'y Gen. 317.

    Gross premiums collected.

    Phrase “gross amount of premiums collected” means gross amount of premiums company actually received, retained, and earned from its policyholders as representing actual cost of their insurance, i.e., total premiums less unearned portion of premiums paid, which portion has been referred to as a “dividend.” 1938-40 Vt. Op. Att'y Gen. 473.

    § 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 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 (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
      2. 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
    1. 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.

    HISTORY: Amended 1975, No. 185 (Adj. Sess.), § 1, eff. March 25, 1976.

    History

    Source.

    V.S. 1947, § 1046. 1039, No. 30 , §§ 1, 2. P.L. §§ 983. 1921, No. 40 , § 1. G.L. § 1024. P.S. § 740. 1902, No. 20 , § 36. V.S. § 579. 1890, No. 3 , § 31. 1884, No. 5 , §§ 2, 4. 1882, No. 1 , § 15.

    Revision note—

    Reference to “Title 32” in subdiv. (1)(A) changed to “this title” to conform to V.S.A. style.

    8 V.S.A. § 4792(c) formerly mentioned in subdiv. (2)(A) was repealed by 1979, No. 50 , § 3, and 1979, No. 50 , § 2 added 8 V.S.A. § 5035 , entitled “Surplus lines tax”; therefore, reference has been changed to the latter section.

    Amendments

    —1975 (Adj. Sess.). Section amended generally.

    § 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.

    HISTORY: Amended 1975, No. 67 , § 1, eff. Jan. 1, 1976.

    History

    Source.

    V.S. 1947, § 1047. P.L. § 982. 1921, No. 40 , § 1. G.L. § 1024. P.S. § 740. 1902, No. 20 , § 36. V.S. § 579. 1890, No. 3 , § 31. 1884, No. 5 , §§ 2, 4. 1882, No. 1 , § 15.

    Amendments

    —1975. Section amended generally.

    § 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.

    History

    Source.

    V.S. 1947, § 1048. 1939, No. 30 , § 3. P.L. § 984. G.L. § 1025. P.S. § 741. 1904, No. 29 , § 13. 1902, No. 20 , § 37. V.S. § 581. 1890, No. 3 , § 33. 1884, No. 5 , § 4. 1882, No. 1 , § 17.

    Notes to Opinions

    Dividends.

    Deduction may be made for “dividends” paid by mutual insurance companies to policyholders, even when they are paid to persons outside the State. 1398-40 Vt. Op. Att'y Gen. 473.

    § 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.

    History

    Source.

    V.S. 1947, § 1049. P.L. § 7071. 1921, No. 163 , § 1. G.L. §§ 1030, 5623. P.S. §§ 743, 4824. R. 1906, § 686. V.S. § 4217. 1888, No. 115 .

    Notes to Opinions

    Annuity contracts.

    Moneys received as consideration for annuity contracts are taxable under the provisions of this section. 1952-54 Vt. Op. Att'y Gen. 391.

    Construction with other laws.

    The provisions of 8 V.S.A. § 3367 control over the provisions of this section and anything inconsistent therewith in this section is repealed and of no force and effect. 1952-54 Vt. Op. Att'y Gen. 391.

    § 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.

    HISTORY: Added 1987, No. 247 (Adj. Sess.), § 2.

    § 8557. Vermont Fire Service Training Council.

      1. Sums for the expenses of the operation of training facilities and curriculum of the Vermont Fire Service Training Council not to exceed $1,200,000.00 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. (a) (1) Sums for the expenses of the operation of training facilities and curriculum of the Vermont Fire Service Training Council not to exceed $1,200,000.00 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 $150,000.00 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.
    1. 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.

    HISTORY: 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.

    History

    Revision note

    —2008. Substituted “division of fire safety” for “fire service training council” and “division of fire safety special fund” for “fire service training council special fund” in light of amendment to 20 V.S.A. § 3157 by 2007, No. 8 , § 5.

    Editor’s note—

    2009, No. 137 (Adj. Sess.), § 28a, added subsec. (b) of this section. However, subsec. (b) already existed and was identical to the one being added by 2009, No. 137 (Adj. Sess.), § 28a.

    Amendments

    —2019 (Adj. Sess.). Subdiv. (a)(4): Inserted “certified Vermont EMS first responders and licensed emergency medical responders,” preceding “emergency”.

    —2019. Section amended generally. su

    —2015 (Adj. Sess.). Subsec. (a): Substituted “$1,200,000.00” for “$950,000.00” in the first sentence.

    —2011 (Adj. Sess.). Act No. 78 substituted “commissioner of financial regulation” for “commissioner of banking, insurance, securities, and health care administration” in the first sentence of subsec. (a).

    Act No. 139 repealed subsec. (b).

    Act No. 143 substituted “$950,000.00” for “$800,000.00” and “commissioner of financial regulation” for “commissioner of banking, insurance, securities, and health care administration” in the first sentence, and added the last two sentences of subsec. (a).

    —2009 (Adj. Sess.) Subsec. (b): Added.

    —2009. Subsec. (a): In the first sentence, inserted “, including surplus lines companies,” after “companies”, deleted “auto” after “passenger”, deleted “physical damage and liability, surplus lines” after “auto”; and deleted “and surplus line” after “Captive” in the second sentence.

    —2007 (Adj. Sess.). Subsec. (a): Act No. 190, § 33 substituted “$600,000.00” for “$400,000.00” following “not to exceed”, “safety” for “service training council”, deleted “auto physical damage” following “private passenger”, substituted “surplus lines, and inland marine” for “physical damage” following “commercial auto”, and inserted “persons” preceding “situated within the state” in the first sentence and deleted “and surplus line” following “Captive” in the second sentence.

    Subsec. (a): Act No. 190, § 34 substituted “$800,000.00” for “$600,000.00”, deleted “physical damage” following “private passenger auto” and inserted “and liability, surplus lines, and inland marine” following “commercial auto physical damage” and “persons” preceding “situated within the state” in the first sentence.

    —2001 (Adj. Sess.) Subsec. (a): Substituted “$400,000.00” for “$250,000.00” following “to exceed” and substituted “special” for “revolving” preceding “fund created” in the first sentence.

    —1995 (Adj. Sess.) Act No. 180 substituted “commissioner of banking, insurance, securities, and health care administration” for “commissioner of banking, insurance, and securities” in the first sentence.

    Act No. 186 amended the section generally.

    Repeal of provisions terminating section. 1993, No. 87 , § 2, provided that this section, which was enacted by § 1 of that act, was to expire on July 1, 1996. 1995, No. 186 , § 29a, effective May 22, 1996, extended the expiration date to July 1, 1997. Finally, 1997, No. 59 , § 38, and No. 61, § 106, each repealed both the 1993 and 1995 sections providing for expiration.

    Applicability of 2007 (Adj. Sess.) amendment. 2007, No. 190 (Adj. Sess.), § 102(9) provides: “Sec. 33 [which amends this section] ($600,000.00 fire training council assessment) shall apply to fiscal year 2009; and Sec. 34 [which also amends this section] ($800,000.00 fire training council assessment) shall apply to fiscal years 2010 and after”.

    Repeal of 2007, No 190 (Adj. Sess.), § 34 amendment. 2009, No. 42 , § 14, provides for the repeal of 2007, No. 190 (Adj. Sess.), § 34, which amended this section.

    Chapter 213. Electrical Energy

    Subchapter 1. General Provisions

    §§ 8601-8603. Repealed. 1961, No. 232, § 3.

    History

    Former §§ 8601-8603. Former § 8601, relating to definitions, was derived from V.S. 1974, § 1162; 1939, No. 33 , § 1; 1937, No. 38 , § 1, Pt. VI; P.L. § 1141; 1931, No. 18 , Pt. II, § 1.

    Former § 8602, relating to regulations, was derived from V.S. 1947, § 1163 and 1939, No. 33 , § 2.

    Former § 8603, relating to deposit of receipts, was derived from V.S. 1947, § 1174; P.L. § 1153; 1931, No. 18 , Pt. II, § 12.

    Subchapter 2. Imposition, Payment, and Collection of Tax

    §§ 8631-8639. Repealed. 1961, No. 232, § 3.

    History

    Former §§ 8631-8639. Former § 8631, relating to imposition and rate of tax, was derived from V.S. 1947, § 1164; P.L. § 1142; 1931, No. 18 , Pt. II, § 2.

    Former § 8632, relating to filing of returns by each manufacturer, was derived from V.S. 1947, § 1167; P.L. § 1145; 1931, No. 18 , Pt. II, § 5.

    Former § 8633, relating to payment of tax and credit against tax, was derived from V.S. 1947, § 1168; P.L. § 1146; 1931, No. 18 , Pt. II, § 5.

    Former § 8634, relating to determination of kilowatt hours, was derived from V.S. 1947, § 1166; P.L. § 1144; 1931, No. 18 , Pt. II, § 4.

    Former § 8635, relating to records by taxpayer, was derived from V.S. 1947, § 1165; P.L. § 1143; 1931, No. 18 , Pt. II, § 3.

    Former § 8636, relating to assessment of tax by Commissioner and review, was derived from V.S. 1947, § 1169; P.L. § 1148; 1931, No. 18 , Pt. II, § 6.

    Former § 8637, relating to penalties, was derived from V.S. 1947, § 1170; P.L. § 1149; 1931, No. 18 , Pt. II, § 7.

    Former § 8638, relating to tax as a debt to the State, was derived from V.S. 1947, § 1171; P.L. § 1150; 1931, No. 18 , Pt. II, § 8.

    Former § 8639, relating to action to recover tax, was derived from V.S. 1947, § 1172; P.L. § 1151; 1931, No. 18 , Pt. II, § 9.

    Subchapter 3. Taxation of Electrical Generating Plants

    § 8661. Repealed. 2019, No. 51, § 40(2), eff. June 10, 2019.

    History

    Former § 8661. Former § 8661, relating to taxation of electric generating plants, was derived from 1967, No. 376 (Adj. Sess.), § 1 and amended by 1977, No. 105 , § 14(a); 1979, No. 105 (Adj. Sess.), § 28; 1991, No. 32 , § 35; 1999, No. 49 , § 88; 2001, No. 144 (Adj. Sess.), § 32; 2003, No. 50 , § 1; and 2011, No. 143 (Adj. Sess.), § 58.

    Annotations From Former § 8661

    Applicability of Tax Injunction Act.

    Vermont’s Electrical Energy Generating Tax, 32 V.S.A. § 8661 , was a tax for purposes of the Tax Injunction Act, 28 U.S.C. § 1341, where the proceeds were directed to general State revenues. Entergy Nuclear Vt. Yankee, LLC v. Shumlin, 737 F.3d 228, 2013 U.S. App. LEXIS 24559 (2d Cir. 2013).

    For purposes of the Tax Injunction Act, 28 U.S.C. § 1341, Vermont had provided a plain, speedy, and efficient forum for challenging Vermont’s Electrical Energy Generating Tax, 32 V.S.A. § 8661 , where the Vermont statutory framework articulated adequate administrative and judicial review, and Vermont courts had jurisdiction to hear the full array of the owners’ grievances against the tax, constitutional or otherwise. Entergy Nuclear Vt. Yankee, LLC v. Shumlin, 737 F.3d 228, 2013 U.S. App. LEXIS 24559 (2d Cir. 2013).

    District court properly dismissed the nuclear power plant owners’ challenge pursuant to 28 U.S.C. § 1341 where the Vermont statutory framework articulated adequate administrative and judicial review, Vermont courts had jurisdiction to hear the full array of the owners’ grievances against the tax, constitutional or otherwise, and thus, the State had provided a plain, speedy, and efficient forum for challenging the tax. Entergy Nuclear Vt. Yankee, LLC v. Shumlin, 737 F.3d 228, 2013 U.S. App. LEXIS 24559 (2d Cir. 2013).

    Federal court did not have jurisdiction to hear a taxpayer’s request for declaratory and injunctive relief seeking to avoid payment of Vermont’s Electrical Energy Generating Tax (EET), imposed under 32 V.S.A. § 8661 , alleging the tax was unconstitutional, because the EET was a “tax,” for purposes of the Tax Injunction Act, 28 U.S.C. § 1341, as the EET raised revenue on behalf of the State which was paid into the State’s General Fund. Entergy Nuclear Vermont Yankee, LLC v. Shumlin, 2012 U.S. Dist. LEXIS 154408 (D. Vt. Oct. 25, 2012), aff'd, 737 F.3d 228, 2013 U.S. App. LEXIS 24559 (2d Cir. 2013).

    Federal court did not have jurisdiction to hear a taxpayer’s request for declaratory and injunctive relief seeking to avoid payment of Vermont’s Electrical Energy Generating Tax (EET), imposed under 32 V.S.A. § 8661 , alleging the tax was unconstitutional, because (1) the taxpayer was able to seek a refund of the tax, and, (2) absent an adequate State administrative remedy, the taxpayer still had a “plain, speedy and efficient” State remedy since the taxpayer’s challenge to the EET could be brought directly in Vermont’s State courts under Vermont’s Declaratory Judgments Act, 12 V.S.A. § 4711 . Entergy Nuclear Vermont Yankee, LLC v. Shumlin, 2012 U.S. Dist. LEXIS 154408 (D. Vt. Oct. 25, 2012), aff'd, 737 F.3d 228, 2013 U.S. App. LEXIS 24559 (2d Cir. 2013).

    § 8662. Repealed. 1999, No. 49, § 89b(a), eff. January 1, 2000.

    History

    Former § 8662. Former § 8662, relating to deductions, was derived from 1967, No. 376 (Adj. Sess.), § 2 and amended by 1991, No. 32 , § 36.

    Chapter 215. Renewable Energy

    History

    Former Chapter 215. Former chapter 215, consisting of §§ 8701-8707, was previously repealed by 1977, No. 237 (Adj. Sess.), § 5.

    2011 (Adj. Sess.) 2011, No. 127 (Adj. Sess.), § 7 provides that the enactment of this chapter by that act shall take effect January 1, 2013.

    § 8701. Uniform capacity tax.

    1. 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.
      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. (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.
    2. 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.
    3. 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 chapter 135 of this title.

    HISTORY: 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.

    History

    Former § 8701. Former § 8701, which related to restrictions of local licenses, was derived from V.S. 1947, § 1225 and 1937, No. 34 , § 1 and was previously repealed by 1977, No. 237 (Adj. Sess.), § 5.

    Revision note

    —2013. In subsec. (a), substituted “As used in” for “For the purposes of” preceding “this section” to conform to V.S.A. style.

    Amendments

    —2021. Section amended generally.

    —2013 (Adj. Sess.). Subsec. (c): Substituted “less than 50kW” for “equal to or less than 10 kW” at the end.

    —2013. Subsec. (d): Added.

    Effective date and applicability of 2013 (Adj. Sess.) amendment. 2013, No. 174 (Adj. Sess.), § 70(8) provides that §§ 26-29 (solar plant exemptions and valuation) [which amended this section, 32 V.S.A. §§ 3802(17) , 3481(1)(D), and 3845] and 32 (valuation of natural gas and petroleum infrastructure) [which amended 32 V.S.A. § 3621 ] shall take effect on January 1, 2015 and apply to property appearing on grand lists lodged in 2015 and after.

    Prospective repeal of subsec. (c). 2011, No. 127 (Adj. Sess.), § 4 as amended by 2013, No. 174 (Adj. Sess.), § 30 provides: “By January 15, 2021, the Department of Taxes shall report to the Senate Committees on Finance and on Natural Resources and Energy and the House Committees on Ways and Means and on Natural Resources and Energy with a recommendation on whether the exemptions in 32 V.S.A. §§ 8701(c) and 3802(17) should be retained or allowed to be repealed and whether the rate of tax in 32 V.S.A. § 8701(b) should be altered.”

    2011 (Adj. Sess.) 2011, No. 127 (Adj. Sess.), § 7 provides that the enactment of this chapter by that act shall take effect January 1, 2013.

    §§ 8702-8707. Repealed. 1977, No. 237 (Adj. Sess.), § 5.

    History

    Former §§ 8702-8707. Former § 8702, relating to application for license, was derived from V.S. 1947, § 1226, and 1937, No. 34 , § 3, and amended by 1961, No. 217 , § 4.

    Former § 8703, relating to term and contents of licenses and fees therefor, was derived from 1949, No. 32 ; V.S. 1947, § 1227; 1937, No. 34 §§ 2, 5, 6, and amended by 1961, No. 217 , § 4.

    Former § 8704, relating to refusal and revocation of license, was derived from V.S. 1947, § 1228; 1937, No. 34 , § 4, and amended by 1961, No. 217 , § 4.

    Former § 8705, relating to restriction of local licenses, was derived from V.S. 1947, § 1229 and 1937, No. 34 , § 6, and amended by 1961, No. 217 , § 4.

    Former § 8706, relating to penalties, was derived from V.S. 1947, §§ 1230, 1232 and 1937, No. 34 , §§ 7, 9.

    Former § 8707, relating to persons excepted from provisions of chapter, was derived from V.S. 1947, §§ 1231, 1233 and 1937, No. 34 , §§ 8, 10.

    Chapter 217. Gasoline and Other Motor Fuels

    §§ 8801-8811. Repealed. 1985, No. 207 (Adj. Sess.), § 3.

    History

    Former §§ 8801-8811. Former § 8801, relating to definitions, was derived from 1949, No. 35 , § 1; V.S. 1947, §§ 1251, 1259; P.L. §§ 1222, 1230; 1929, No. 30 , §§ 1, 7; 1923, No. 83 , §§ 1, 5, and amended by 1966, No. 58 (Sp. Sess.). The subject matter is now covered by 23 V.S.A. § 3101 .

    Former § 8802, relating to licensing and bonding of distributors, was derived from V.S. 1947, § 1252; P.L. § 1223; 1931, No. 16 , § 1; 1931, No. 15 , §§ 1, 3; 1929, No. 30 , § 2; 1923, No. 83 , § 2, and amended by 1961, No. 152 ; 1979, No. 105 (Adj. Sess.), § 29; 1983, No. 160 (Adj. Sess.), § 1. The subject matter is now covered by 23 V.S.A. § 3102 .

    Former § 8803, relating to suspension and revocation of distributor’s licenses, was derived from V.S. 1947, § 1253; P.L. § 1224; 1931, No. 15 , § 3. The subject matter is now covered by 23 V.S.A. § 3103 .

    Former § 8804, relating to calibration of tank vessels, was derived from V.S. 1947, § 1254; P.L. § 1225; 1929, No. 30 , § 3. The subject matter is now covered by 23 V.S.A. § 3104 .

    Former § 8805, relating to records of sales and importations, was derived from V.S. 1947, § 1255; P.L. § 1226; 1929, No. 30 , § 4; 1927, No. 82 , § 1; 1925, No. 75 , § 1; 1923, No. 83 , § 3. The subject matter is now covered by 23 V.S.A.§ 3105.

    Former § 8806, relating to imposition, rate, and payment of the gasoline tax, was derived from 1957, No. 251 ; 1955, No. 209 , § 1; 1949, No. 35 , § 2; V.S. 1947, § 1257; 1947, No. 25 , § 1; P.L. § 1228; 1933, No. 28 ; 1931, No. 14 , § 1; 1929, No. 30 , § 5, and amended by 1967, No. 380 (Adj. Sess.), § 1; 1971, No. 35 ; 1979, No. 105 (Adj. Sess.), § 47; 1981, No. 87 , § 5; 1983, No. 87 , § 1. The subject matter is now covered by 23 V.S.A. § 3106 .

    Former § 8807, relating to an alternative basis for computing the gasoline tax, was derived from V.S. 1947, § 1258; P.L. § 1229; 1931, No. 15 , § 2. The subject matter is now covered by 23 V.S.A. § 3107 .

    Former § 8808, relating to returns, was derived from 1953, No. 45 ; V.S. 1947, § 1256; P.L. § 1227; 1929, No. 30 , § 5; 1925, No. 75 , § 1; 1923, No. 83 , § 4, and amended by 1979, No. 105 (Adj. Sess.), § 46. The subject matter is now covered by 23 V.S.A. § 3108 .

    Former § 8809, relating to failure to make returns or pay the gasoline tax, was derived from 1957, No. 251 ; 1955, No. 209 , § 1; 1949, No. 35 , § 32; V.S. 1947, § 1257; 1947, No. 25 , § 1; P.L. § 1228; 1933, No. 28 ; 1931, No. 14 , § 1; 1929, No. 30 , § 5, and amended by 1979, No. 105 (Adj. Sess.), § 30. The subject matter is now covered by 23 V.S.A. § 3109 .

    Former § 8810, relating to reports of common carriers, was derived from V.S. 1947, § 1261; P.L. § 1232; 1929, No. 30 , § 9. The subject matter is now covered by 23 V.S.A. § 3113 .

    Former § 8811, relating to penalties, was derived from V.S. 1947, § 1262; P.L. § 1233; 1929, No. 30 , § 10; 1923, No. 83 , § 7. The subject matter is now covered by 23 V.S.A. § 3114 .

    §§ 8871-8874. Repealed. 1985, No. 207 (Adj. Sess.), § 3.

    History

    Former §§ 8871-8874. Former § 8871, relating to imposition and rate of reciprocal tax, was derived from 1951, No. 30 , § 1. The subject matter is now covered by 23 V.S.A. § 3171 .

    Former § 8872, relating to agreements for reciprocal waiver of tax, was derived from 1951, No. 30 , § 2, and amended by 1983, No. 160 (Adj. Sess.). The subject matter is now covered by 23 V.S.A. § 3172 .

    Former § 8873, relating to definition of gasoline or other motor fuel, was derived from 1951, No. 30 , § 3. The subject matter is now covered by 23 V.S.A. § 3173 .

    Former § 8874, relating to rules and regulations, was derived from 195, No. 30 , § 4, and amended by 1983, No. 160 (Adj. Sess.). The subject matter is now covered by 23 V.S.A. § 3174 .

    Chapter 219. Motor Vehicle Purchase and Use Tax

    History

    1959, No. 327 (Adj. Sess.), § 14, contained a separability provision applicable to this chapter.

    Application to snowmobiles. 1967, No. 341 (Adj. Sess.), § 11, eff. July 1, 1968, provided: “Chapter 218 [now chapter 219] of Title 32, V.S.A. does not apply to snowmobiles.”

    ANNOTATIONS

    Purpose.

    This chapter is designed to protect the State’s revenues by taking away the advantages to residents of travelling out of state to make untaxed purchases, and to protect local merchants from out-of-state competition that, because of its lower or nonexistent tax burdens, can offer lower prices. Leverson v. Conway, 144 Vt. 523, 481 A.2d 1029, 1984 Vt. LEXIS 512 (1984), app. dismissed, 469 U.S. 926, 105 S. Ct. 316, 83 L. Ed. 2d 255, 1984 U.S. LEXIS 4080 (1984), vacated, 472 U.S. 1014, 105 S. Ct. 3471, 87 L. Ed. 2d 608, 1985 U.S. LEXIS 2365 (1985).

    Cited.

    Cited in Northern Rent-A-Car, Inc. v. Conway, 143 Vt. 220, 464 A.2d 750, 1983 Vt. LEXIS 502 (1983).

    Notes to Opinions

    Nature of tax.

    The tax imposed by this chapter is a “purchase and use tax,” not a purchase or use tax, and the use tax simply constitutes a compensating tax levied upon use within Vermont of property purchased outside the State. 1966-68 Vt. Op. Att'y Gen. 134.

    Scope of chapter.

    This chapter does not impose any tax on the transfer of a motor vehicle in or out of Vermont for no consideration. 1966-68 Vt. Op. Att'y Gen. 134.

    § 8900. Statutory purposes.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.

    HISTORY: 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 thereby 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 his or her authorized representatives. The Commissioner may prescribe and publish regulations to carry into effect the provisions of this chapter, which regulations, when reasonably designed to carry out the intent of this chapter, shall have the same force as if enacted herein.

    HISTORY: Added 1959, No. 327 (Adj. Sess.), § 1, eff. March 1, 1960.

    CROSS REFERENCES

    Procedure for adoption of administrative rules, see 3 V.S.A. chapter 25.

    ANNOTATIONS

    Cited.

    Cited in Leverson v. Conway, 144 Vt. 523, 481 A.2d 1029, 1984 Vt. LEXIS 512 (1984), Williams v. Vermont, 1985 U.S. LEXIS 90, 472 U.S. 14, 105 S. Ct. 2465, 86 L. Ed. 2d 11 (1985); Barringer v. Griffes, 801 F. Supp. 1282, 1992 U.S. Dist. LEXIS 14953 (D. Vt. 1992); Barringer v. Griffes, 1 F.3d 1331, 1993 U.S. App. LEXIS 20369 (2d Cir. 1993).

    Notes to Opinions

    Publication of regulations.

    Regulations issued by the Commissioner should be published pursuant to this section. 1962-64 Vt. Op. Att'y Gen. 254.

    § 8902. Definitions.

    Unless otherwise expressly provided, the words and phrases used in this chapter shall be construed to mean:

    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. “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. 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:
      1. The value allowed by the seller on any motor vehicle accepted by him or her as part of the consideration of the motor vehicle, provided the motor vehicle accepted by the seller is owned and previously or currently registered by the purchaser, with no change of ownership since registration, 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.
      2. The amount received from the sale of a motor vehicle last registered in his or her 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 NADA Official Used Car Guide (New England edition), or any comparable publication, provided such sale occurs within three months of 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 person’s return from activation or deployment. Such amount shall be reported on forms supplied by the Commissioner of Motor Vehicles.
      3. 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 him or her, 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:
        1. the motor vehicle with respect to which such 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
        2. the motor vehicle with respect to which such payment is made to the insurer is treated as a total loss and is sold for dismantling.
      4. 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 him or her under contract of collision, comprehensive, or similar insurance after he or she has paid the tax imposed by this chapter, if such payment by the insurer is either:
        1. 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
        2. 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.
      5. 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. Notwithstanding any other provision of law, for leases in effect on June 30, 1995, no portion of the purchase and use tax paid at the time of lease shall be refunded; provided, however, for leases in effect on June 30, 1995, if the lessee purchases the leased vehicle, no tax shall be imposed on that purchase.
    6. “Motor vehicle” shall have the same definition as in 23 V.S.A. § 4 .
    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.

    HISTORY: 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.

    History

    Revision note

    —2021. In subdiv. (2), deleted “means resident” preceding “shall include all legal residents” for purposes of clarity. In subdiv. (5)(C), substituted “subsection 8903(d) of this title” for “ 32 V.S.A. § 8903(d) ”, in subdiv. (5)(D), substituted “subsection 8903(a) or (b) of this title” for “ 32 V.S.A. § 8903(a) or (b)”, and in subdiv. (5)(E), substituted “subsections 8903(a) and (b) of this title” for “ 32 V.S.A. § 8903(a) and (b)” to conform references to V.S.A. style.

    —2008. In subdiv. (5)(A), substituted “subdivision 8911(8) of this title” for “section 8911(8) of this title” to conform reference to V.S.A. style.

    Revision note—. In subdiv. (11), deleted “definition of motor home” following the subdivision designation to conform the style of the subdivision to the existing style of the remainder of the section.

    Amendments

    —2017. Subdiv. (5)(B): Substituted “clean trade-in” for “average book” preceding “value” and “NADA Official Used Car Guide” for “Official Used Car Guide, National Automobile Dealers Association” preceding “(New England edition)” in the first sentence.

    —2011. Subdiv. (5)(B): Added the second sentence.

    —1999 (Adj. Sess.). Subdiv. (5)(B): Substituted “vehicle last registered in his or her name” for “vehicle then registered in his name” and “the Official Used Car Guide” for “the official used car guide”, and inserted “or any comparable publication” preceding “provided such” in the first sentence.

    —1995 (Adj. Sess.) Subdiv. (4): Substituted “value of” for “gross consideration which the lessee would pay for the motor vehicle if the lessee purchased” following “end value is the” in the third sentence and added “or as determined under section 807 of this title” following “worksheet” at the end of that sentence.

    Subdiv. (5)(F): Added.

    —1995. Subdiv. (3): Inserted “leases and” following “including”.

    Subdiv. (4): Added the second and third sentences.

    Subdiv. (5): Rewrote the introductory paragraph.

    —1991. Subdiv. (9): Added the second sentence.

    —1985 (Adj. Sess.) Subdiv. (5)(C): Act No. 218 inserted “or her, provided that the vehicle is not subject to the tax imposed by 32 V.S.A. § 8903(d) and” following “motor vehicle owned by him”.

    Subdiv. (5)(D): Act No. 218 substituted “ 32 V.S.A. § 8903(a) or (b)” for “this chapter” following “refund of taxes paid under” and inserted “or her” following “payment to him” and “or she” following “similar insurance after he”.

    Subdiv. (5)(E): Added by Act No. 218.

    Subdiv. (11): Added by Act No. 187.

    —1983 (Adj. Sess.) Subdiv. (9): Added.

    Subdiv. (10): Added.

    —1981. Subdiv. (6): Amended generally.

    —1969 (Adj. Sess.) Subdiv. (5)(C)(ii): Amended generally.

    Subdiv. (5)(D): Added.

    —1967. Subdiv. (5): Amended generally.

    —1966. Subdiv. (5)(A): Added proviso and exception.

    —1963. Subdiv. (5): Amended generally.

    1995 amendment. 1995, No. 19 , § 13, eff. April 17, 1995, provided in part that the amendment to this section by § 1 of that act shall apply to payments made or to be made under leases in effect on or after July 1, 1995.

    Retroactive applicability and effective date. 2011, No. 46 , § 25(a) provides that amendment to this section shall apply retroactively to October 1, 2009.

    ANNOTATIONS

    Cited.

    Cited in Northern Rent-A-Car, Inc. v. Conway, 143 Vt. 220, 464 A.2d 750, 1983 Vt. LEXIS 502 (1983); Leverson v. Conway, 144 Vt. 523, 481 A.2d 1029, 1984 Vt. LEXIS 512 (1984), Williams v. Vermont, 1985 U.S. LEXIS 90, 472 U.S. 14, 105 S. Ct. 2465, 86 L. Ed. 2d 11 (1985); American Trucking Ass'ns v. Conway, 146 Vt. 579, 508 A.2d 408, 1986 Vt. LEXIS 331 (1986).

    Notes to Opinions

    Construction.

    Statutes, such as subdiv. (5)(C)(ii) of this section, providing for exemption from taxation are to be strictly construed and no claim for exemption can be sustained unless within the express letter or necessary scope of the statute. 1964-66 Vt. Op. Att'y Gen. 172.

    Highway building equipment.

    The classification of highway building equipment under 23 V.S.A. § 4 applies only when such equipment is used exclusively for the building, repair, or maintenance of highways. 1966-68 Vt. Op. Att'y Gen. 132.

    Motor vehicle.

    Under 23 V.S.A. § 4 , a motor vehicle is defined as including all motorized vehicles, except farm and highway equipment. 1966-68 Vt. Op. Att'y Gen. 132.

    For the purposes of the purchase and use tax law, the definition of motor vehicle covers all vehicles propelled or drawn by power other than muscular power, except tractors used entirely for work on the farm, vehicles running on tracks, motorized highway building equipment, road-making appliances, and any trailer or semi-trailer designed to be towed by a motor vehicle and designed, equipped, or used for sleeping, eating, or living quarters. 1966-68 Vt. Op. Att'y Gen. 131.

    Purchase.

    “Purchase” does not necessarily mean either payment or delivery. 1958-60 Vt. Op. Att'y Gen. 140.

    Purchase price.

    The cost of any equipment that becomes an integral part of the motor vehicle and that would affect the purpose and function thereof, if removed, should be included in determining the “purchase price” under subdiv. (4) of this section, from which the taxable cost is then computed under subdiv. (5) of this section. 1966-68 Vt. Op. Att'y Gen. 131.

    The “purchase price” of a motor vehicle includes not only the chassis, but also equipment attached thereto and forming an integral part thereof and that, if not attached, would nullify the purpose and function thereof. 1966-68 Vt. Op. Att'y Gen. 131.

    There can be no “purchase price” with respect to a transfer without consideration whether by will, by death, by intestacy, or by inter vivos transfer. 1966-68 Vt. Op. Att'y Gen. 134.

    Total loss.

    Under subdiv. (5)(C)(ii) of this section, to qualify for the allowance in determining the taxable cost, the owner of the wrecked car and the purchaser of the new car must be the same person. 1964-66 Vt. Op. Att'y Gen. 172.

    Trade-in allowance.

    Where old vehicle was privately sold and not traded in as part of consideration of purchase price of new vehicle, assessment of tax on full purchase price was correct. 1962-64 Vt. Op. Att'y Gen. 256.

    § 8903. Tax imposed.

      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) (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:
        1. pleasure car as defined in 23 V.S.A. § 4 ;
        2. motorcycle as defined in 23 V.S.A. § 4 ;
        3. motor home as defined in subdivision 8902(11) of this title; or
        4. 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 $2,075.00 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.
      1. There is hereby imposed upon the use within this State a tax of six percent of the taxable cost of a: (b) (1) There is hereby imposed upon the use within this State a tax of six percent of the taxable cost of a:
        1. pleasure car as defined in 23 V.S.A. § 4 ;
        2. motorcycle as defined in 23 V.S.A. § 4 ;
        3. motor home as defined in subdivision 8902(11) of this title; or
        4. 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 $2,075.00 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.
    1. 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.
    2. 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.
      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: (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:
        1. 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
        2. the vehicle is no longer used in short-term rentals; and
        3. 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.
    3. 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.
      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: (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:
        1. pleasure car as defined in 23 V.S.A. § 4 ;
        2. motorcycle as defined in 23 V.S.A. § 4 ;
        3. motor home as defined in subdivision 8902(11) of this title; or
        4. 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.

    HISTORY: 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.

    History

    Revision note

    —2009. Designated subdiv. (A) through (D) in subdivs. (a)(1) and (b)(1).

    Revision note—. In the fourth sentence of subsec. (d), substituted “subsection (a) of this section” for “section 8903(a)” to conform reference to V.S.A. style.

    Amendments

    —2015 (Adj. Sess.). Subdiv. (a)(2): Substituted “$2,075.00” for “$1,850.00” and “that” for “which” following “pleasure cars”.

    Subdiv. (b)(2): Substituted “the” for “a” preceding “motor vehicle”, “$2,075.00” for “$1,850.00”, and “that” for “which” following “pleasure car”.

    —2009. Substituted “$1,850.00” for “$1,680.00” in subdivs. (a)(2) and (b)(2); and substituted “nine” for “seven” in the second sentence of subsec. (d).

    —2005 (Adj. Sess.). Subsecs. (a) and (b): Added the subdivision designations and substituted “$1,680.00” for “$1,100.00” in subdivs. (a)(2) and (b)(2).

    —2003 (Adj. Sess.). Subsec. (e): Amended generally.

    —2001 (Adj. Sess.). Subsec. (d): Substituted “seven percent” for “five percent” in the second sentence.

    —1999 (Adj. Sess.). Rewrote subsecs. (a), (b), and (g).

    —1995. Deleted “or” preceding “transfer” and inserted “or the issuance of a Vermont certificate of title” preceding “of a motor” in subsec. (c) and added subsecs. (f) and (g).

    —1993 (Sp. Sess.). Substituted “five” for “four” preceding “percent” in the second and third sentences of subsec. (a) and in the first and second sentences of subsec. (b).

    —1991. Substituted “five” or “four” preceding “percent” in the second and third sentences of subsec. (a) and in the first and second sentences of subsec. (b) and “$ 750.00” for “$ 600.00” in the third sentence of subsec. (a) and in the second sentence of subsec. (b).

    —1989. Inserted “or motor home” preceding “except for school” in the second sentence of subsec. (a) and in the first sentence of subsec. (b) and deleted “or $1,000.00 for each motor home” preceding “whichever” in the third sentence of subsec. (a) and in the second sentence of subsec. (b).

    —1987. Added “except for farm trucks” following “ 23 V.S.A. § 367 ” at the end of the second sentence of subsec. (a) and at the end of the first sentence of subsec. (b).

    —1985 (Adj. Sess.). Subsec. (a): Amended generally by Act No. 187.

    Subsec. (b): Amended generally by Act No. 187.

    Subsec. (e): Amended generally by Act No. 218.

    —1983 (Adj. Sess.). Subsec. (a): Added “except that pleasure cars which are purchased for use in short-term rentals shall be subject to taxation under subsection (d) of this section” following “whichever is smaller” in the second sentence.

    Subsec. (d): Added.

    Subsec. (e): Added.

    —1981 (Adj. Sess.). Subsecs. (a) and (b): Increased dollar figures from “$500.00” to “$600.00”.

    —1981. Subsecs. (a) and (b): Increased dollar figures from “$400.00” to “$ 500.00”.

    —1979 (Adj. Sess.). Subsecs. (a) and (b): Increased dollar figures from “$300.00” to “$400.00”.

    —1967 (Adj. Sess.). Substituted “four” for “three” preceding “per cent” and “$300.00” for “$225.00” in subsecs. (a) and (b).

    —1967. Subsec. (c): Added.

    —1966. Subsec. (b): Changed “resident” to “person”.

    —1961. Increased percentage figure in both subsecs. (a) and (b) from two to three and dollar figures from $150 to $225.

    1995 amendment. 1995, No. 19 , § 13, eff. April 17, 1995, provided in part that the amendment to this section by §§ 2 and 3 of that act shall apply to payments made or to be made under leases in effect on or after July 1, 1995.

    Applicability of amendment to subsec. (d). 2001, No. 102 (Adj. Sess.), § 36, provides that § 35 of that act [which amends subsec. (d) by substituting “seven percent” for “five percent”] shall apply to rentals on and after July 1, 2002.

    Rate of motor vehicle purchase and use tax effective July 1, 1993. 1991, No. 73 , § 2, provided: “Effective July 1, 1993, the rate of the motor vehicle purchase and use tax shall revert to four percent unless the increase in the rate of this tax, enacted herein [§ 2 of the act, which amended this section], is further extended by act of the general assembly.”

    Expiration of 1993 (Sp. Sess.) amendment. 1993, No. 1 (Sp. Sess.), § 8, eff. July 23, 1993, provided that the amendment to this section by § 7 of that act shall expire on July 1, 1995. Pursuant to 1995, No. 29 , § 37, eff. April 14, 1995, the purchase and use tax rate shall not change on July 1, 1995, but shall remain at five percent through June 30, 1996 and shall revert to four percent effective on July 1, 1996. Pursuant to 1995, No. 178 (Adj. Sess.), § 292b, the purchase and use tax rate shall not revert to four percent on July 1, 1996, but shall remain at five percent through June 30, 1997 and shall revert to 4 percent on July 1, 1997.

    However, in accordance with 1997, No. 60 , § 74, eff. June 26, 1997, the purchase and use tax rate shall not revert to four percent on July 1, 1997 but shall remain at five percent effective July 1, 1997 and shall be six percent effective August 1, 1997 and until further amended by the Legislature. Furthermore, 1997, No. 60 , § 100(k)(5), eff. June 26, 1997, provided that the provisions of § 74 of that act, relating to the six percent purchase and use tax, shall apply to purchases and uses on and after August 1, 1997.

    Car rental tax correction. 2003, No. 19 , § 58(a) provides: “Notwithstanding 16 V.S.A. § 4025 , proceeds from the motor vehicle rental tax received during fiscal years 2002 and earlier that were to be paid into the education fund and were deposited in the transportation fund shall remain in the transportation fund. Proceeds from the motor vehicle rental tax from fiscal year 2003 and on shall be allocated in accordance with the provisions of 16 V.S.A. § 4025 .”

    ANNOTATIONS

    Constitutionality.

    Vermont motor vehicle purchase and use tax violated Commerce Clause to extent that use tax was collected from out-of-state residents without crediting sales taxes they may have paid to other states; in absence of such a credit, tax discriminated against interstate commerce by providing advantage to local automobile dealers whose products would effectively cost less, inducing individuals moving to Vermont to purchase their automobiles in Vermont. Barringer v. Griffes, 1 F.3d 1331, 1993 U.S. App. LEXIS 20369 (2d Cir. 1993), cert. denied, 510 U.S. 1072, 114 S. Ct. 879, 127 L. Ed. 2d 75, 1994 U.S. LEXIS 997 (1994).

    Vermont motor vehicle use tax was not fairly apportioned and therefore violated Commerce Clause; if all states employed Vermont’s tax plan and did not provide credit for taxes paid to other states, a vehicle registered in several states during its useful life would be taxed considerably more than a vehicle that spent its entire life in one state, thus burdening vehicles transported in interstate commerce. Barringer v. Griffes, 1 F.3d 1331, 1993 U.S. App. LEXIS 20369 (2d Cir. 1993), cert. denied, 510 U.S. 1072, 114 S. Ct. 879, 127 L. Ed. 2d 75, 1994 U.S. LEXIS 997 (1994).

    Where plaintiff purchased an automobile while residing in Wisconsin and paid a sales tax to that state, requirement of this section that he pay a use tax as a condition of registering the vehicle in Vermont did not violate the Privileges and Immunities Clause of the United States Constitution by infringing plaintiff’s right to travel, since plaintiff suffered no restrictions on his right to travel in Vermont and incurred no penalty as a result of the exercise of that right, plaintiff was free to bring the automobile to Vermont, and plaintiff’s right to register the vehicle, which triggered the use tax obligation, did not implicate the fundamental right to travel. Leverson v. Conway, 144 Vt. 523, 481 A.2d 1029, 1984 Vt. LEXIS 512 (1984), app. dismissed, 469 U.S. 926, 105 S. Ct. 316, 83 L. Ed. 2d 255, 1984 U.S. LEXIS 4080 (1984), vacated, 472 U.S. 1014, 105 S. Ct. 3471, 87 L. Ed. 2d 608, 1985 U.S. LEXIS 2365 (1985).

    Where plaintiff purchased an automobile while residing in Wisconsin and paid a sales tax to that state, requirement of this section that he pay a use tax as a condition of registering the vehicle in Vermont did not violate the Commerce Clause since plaintiff had moved to Vermont and at the time he sought to register the vehicle both he and the vehicle had come to rest in Vermont. Leverson v. Conway, 144 Vt. 523, 481 A.2d 1029, 1984 Vt. LEXIS 512 (1984), app. dismissed, 469 U.S. 926, 105 S. Ct. 316, 83 L. Ed. 2d 255, 1984 U.S. LEXIS 4080 (1984), vacated, 472 U.S. 1014, 105 S. Ct. 3471, 87 L. Ed. 2d 608, 1985 U.S. LEXIS 2365 (1985).

    Suit against State.

    Dismissal of taxpayers’ suit against the State seeking damages for payment of taxes under unconstitutional motor vehicle use tax on basis of sovereign immunity did not deprive plaintiffs of their due process right to redress where, once United States Supreme Court held the tax facially unconstitutional, the Commissioner of the Department of Motor Vehicles had statutory jurisdiction to adjudicate constitutional claims in determining agency administration of delegated authority and statutory mandate to refund any overpayment of taxes. Williams v. State, 156 Vt. 42, 589 A.2d 840, 1990 Vt. LEXIS 271 (1990), cert. denied, 502 U.S. 821, 112 S. Ct. 81, 116 L. Ed. 2d 54, 1991 U.S. LEXIS 5600 (1991), cert. denied, 502 U.S. 984, 112 S. Ct. 590, 116 L. Ed. 2d 614, 1991 U.S. LEXIS 6964 (1991).

    Trial court properly dismissed taxpayers’ suit against the State seeking damages for taxes paid under unconstitutional motor vehicle use tax; as State’s statutory remedy was available to plaintiffs and comported with requirements of due process, the State was entitled to dismissal on the basis of sovereign immunity from suit in a court of plenary jurisdiction where it had not waived such immunity. Williams v. State, 156 Vt. 42, 589 A.2d 840, 1990 Vt. LEXIS 271 (1990), cert. denied, 502 U.S. 821, 112 S. Ct. 81, 116 L. Ed. 2d 54, 1991 U.S. LEXIS 5600 (1991), cert. denied, 502 U.S. 984, 112 S. Ct. 590, 116 L. Ed. 2d 614, 1991 U.S. LEXIS 6964 (1991).

    Taxable cost.

    Purchaser of new auto was not entitled to a refund of part of the State motor vehicle purchase and use tax where he argued that auto’s taxable cost should have been reduced by an amount equal to the refund he received from the manufacturer under federal law providing for a refund of the federal excise tax upon his auto, and that he was thus entitled to a refund from the State equal to the tax paid on the amount representing the refund from the manufacturer. Camp v. Department of Motor Vehicles, 131 Vt. 536, 310 A.2d 35, 1973 Vt. LEXIS 348 (1973).

    Cited.

    Cited in 1958-60 Vt. Op. Att'y Gen. 140; 1966-68 Vt. Op. Att'y Gen. 134; Williams v. Vermont, 472 U.S. 14, 105 S. Ct. 2465, 86 L. Ed. 2d 11, 1985 U.S. LEXIS 90 (1985), Barringer v. Griffes, 964 F.2d 1278, 1992 U.S. App. LEXIS 11136 (2d Cir. 1992); American Trucking Ass'ns, Inc. v. Conway, 146 Vt. 574, 508 A.2d 405, 1986 Vt. LEXIS 328 (1986); American Trucking Ass'ns v. Conway, 146 Vt. 579, 508 A.2d 408, 1986 Vt. LEXIS 331 (1986), Boutin v. Conway, 153 Vt. 558, 572 A.2d 905, 1990 Vt. LEXIS 38 (1990).

    Notes to Opinions

    Dealers.

    In order to avoid tax evasion, the Commissioner may make rules and regulations regarding “taxable cost” where a dealer transfers a new car to himself and takes as a “trade-in” a car also registered to him. 1962-64 Vt. Op. Att'y Gen. 254.

    Vehicle purchased but not registered in Vermont.

    The tax imposed by this section is required to be paid upon the purchase of a motor vehicle in Vermont by a Vermont resident, regardless of the fact that the vehicle will not be registered in Vermont, and in such circumstances the taxpayer would not be entitled to a future refund of the tax on the basis that the vehicle had never been registered in Vermont. 1968-70 Vt. Op. Att'y Gen. 165.

    Vehicle registered but not purchased or used in Vermont.

    Due to the nature of the tax imposed by this section, a person who has registered, but neither purchased nor used, a specific motor vehicle in Vermont, is not liable to the purchase and use tax. 1966-68 Vt. Op. Att'y Gen. 134.

    § 8904. Completion of form.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Revision note—

    In subsec. (b), substituted “subsection (a)” for “paragraph (a)” to conform reference to V.S.A. style.

    Amendments

    —1995. Subsec. (a): Inserted “or leasing” following “selling” in two places and “or lessee” following “purchaser” and substituted “subsections (a), (b), (f) or (g)” for “subsection (a)” following “imposed by”.

    Subsec. (b): Inserted “or lessor” following “seller”.

    —1963. Designated former section as subsec. (a) and added subsec. (b).

    1995 amendment. 1995, No. 19 , § 13, eff. April 17, 1995, provided in part that the amendment to this section by § 4 of that act shall apply to payments made or to be made under leases in effect on or after July 1, 1995.

    § 8905. Collection of tax.

    1. Every purchaser of a motor vehicle subject to a tax under subsection 8903(a) of this title shall forward such tax form to the Commissioner, together with the amount of tax due at the time of first registering or transferring a registration to such motor vehicle as a condition precedent to registration thereof.
    2. Every person subject to a use tax under subsection 8903(b) of this title shall forward such 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 such motor vehicle as a condition precedent to registration thereof.
    3. 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.
    4. Every person required to collect the use tax under subsection 8903(d) of this title shall forward such tax and a report of same on forms prescribed and furnished by the Commissioner at the frequency determined by the Commissioner.
    5. 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.
    6. 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 such motor vehicle as a condition precedent to the titling thereof.

    HISTORY: 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.

    History

    Amendments

    —1995. Substituted “(b), (e) or (f)” for “and (b)” following “subsections (a)” in subsec. (c) and added subsecs. (e) and (f).

    —1989 (Adj. Sess.). Subsec. (c): Added “shall be added to the tax due” following “smaller”.

    —1983 (Adj. Sess.). Subsec. (d): Added.

    —1975. Subsec. (a): Deleted “within 30 days of” preceding “at the time of first registering” and added “as a condition precedent to registration thereof” at the end of the sentence.

    —1969 (Adj. Sess.). Subsec. (c): Amended generally.

    —1967. Subsec. (c): Added phrase “or $150.00 whichever is smaller” following “cost”.

    —1966. Subsec. (a): Deleted “within five days after the date of purchase” following “commissioner” and added “within thirty days of the time of first registering or transferring a registration to such motor vehicle” following “tax due”.

    Subsec. (b): Changed “resident” to “person”.

    Subsec. (c): Added.

    1995 amendment. 1995, No. 19 , § 13, eff. April 17, 1995, provided in part that the amendment to this section by §§ 5 and 6 of that act shall apply to payments made or to be made under leases in effect on or after July 1, 1995.

    ANNOTATIONS

    Accord and satisfaction.

    Department of Motor Vehicles’ (DMV) acceptance of plaintiff’s check for partial payment of purchase and use tax owed, which plaintiff tendered with “paid in full” notation, did not effect an accord and satisfaction; demand for penalty was made prior to time plaintiff wrote check and also subsequent to DMV acceptance of check. Boutin v. Conway, 153 Vt. 558, 572 A.2d 905, 1990 Vt. LEXIS 38 (1990).

    Late-payment penalty.

    For purposes of enforcement of purchase and use tax on motor vehicles, late-payment penalty is part of the tax itself. Boutin v. Conway, 153 Vt. 558, 572 A.2d 905, 1990 Vt. LEXIS 38 (1990).

    Cited.

    Cited in Williams v. Vermont, 472 U.S. 14, 105 S. Ct. 2465, 86 L. Ed. 2d 11, 1985 U.S. LEXIS 90 (1985); Barringer v. Griffes, 801 F. Supp. 1282, 1992 U.S. Dist. LEXIS 14953 (D. Vt. 1992).

    § 8906. Tax form contents.

    Except as otherwise provided pursuant to subdivision 8905(d) of this title, such tax form shall require information as to the purchase price of the motor vehicle, the value of any motor vehicle accepted in trade together with its make, type, serial or identification number, and year of manufacture, and the make, type, serial or identification number, and year of manufacture of the motor vehicle purchased.

    HISTORY: Added 1959, No. 327 (Adj. Sess.), § 6, eff. March 1, 1960; amended 1983, No. 251 (Adj. Sess.), § 5, eff. Jan. 1, 1985.

    History

    Revision note

    —2008. Substituted “subsection 8905(d) of this title” for “section 8905(d) of this title” to conform reference to V.S.A. style.

    Amendments

    —1983 (Adj. Sess.). Added “except as otherwise provided pursuant to section 8905(d)” preceding “such tax form” at the beginning of the section.

    § 8907. Commissioner, computation of taxable costs.

    1. 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 his or her 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 the NADA Official Used Car Guide (New England Edition) or any comparable publication, less the lease end value of any leased vehicle. The Commissioner may compute and assess the tax due thereon, and notify the purchaser thereof forthwith by certified mail, and the purchaser shall remit the same within 15 days thereafter.
    2. 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 make, 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.

    HISTORY: 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.

    History

    Amendments

    —2017. Subsec. (a): Substituted “clean trade-in” for “average book” preceding “value” and “NADA Official Used Car Guide” for “Official Used Car Guide, National Automobile Dealers Association” preceding “(New England edition)” in the first sentence.

    —1995 (Adj. Sess.) Designated the existing provisions of the section as subsec. (a), and added subsec. (b).

    —1995. Rewrote the second sentence as the second and third sentences.

    —1967. Added “if the motor vehicle is not acquired by purchase in Vermont or is received for an amount which does not represent actual value” in the beginning of the second sentence.

    1995 amendment. 1995, No. 19 , § 13, eff. April 17, 1995, provided in part that the amendment to this section by § 7 of that act shall apply to payments made or to be made under leases in effect on or after July 1, 1995.

    ANNOTATIONS

    Actual value.

    Assessment of purchase and use tax on motor vehicles is on actual value of the vehicle. Boutin v. Conway, 153 Vt. 558, 572 A.2d 905, 1990 Vt. LEXIS 38 (1990).

    Cited.

    Cited in Williams v. Vermont, 472 U.S. 14, 105 S. Ct. 2465, 86 L. Ed. 2d 11, 1985 U.S. LEXIS 90 (1985).

    Notes to Opinions

    Uniformity.

    Assessments of taxable cost by the Commissioner on an individual basis must be based on uniform standards. 1964-64 Vt. Op. Att'y Gen. 254.

    § 8908. Regulations.

    Notwithstanding any other provision of law, the Commissioner may from time to time make regulations 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.

    HISTORY: Added 1967, No. 116 , § 6, eff. April 17, 1967.

    CROSS REFERENCES

    Procedure for adoption of administrative rules, see 3 V.S.A. chapter 25.

    § 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.

    HISTORY: 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.

    History

    Amendments

    —2015 (Adj. Sess.). Section amended generally.

    —1983 (Adj. Sess.). Substituted “subsections (a), (b) and (d)” for “subsections (a) and (b)” and inserted “or rental company’s” preceding “right to operate”.

    —1967. Reenacted without change.

    —1966. Inserted “and (b)” preceding “of section”.

    ANNOTATIONS

    Constitutionality.

    Suspension of driver’s license for failure to pay a vehicle purchase and use tax is a rational method for the collection of taxes in the public interest and does not impede the right to travel under the Fourteenth Amendment. Boutin v. Conway, 153 Vt. 558, 572 A.2d 905, 1990 Vt. LEXIS 38 (1990).

    Due process does not require prior evidentiary hearing on suspension of driver’s license for failure to pay purchase and use tax on motor vehicle. Boutin v. Conway, 153 Vt. 558, 572 A.2d 905, 1990 Vt. LEXIS 38 (1990).

    Though an important property right, the right to drive is not fundamental in the constitutional sense, and since this section clearly draws no suspect classification along the lines of race, nationality or alienage, claim that the suspension provision of this section denies equal protection did not have to be tested by the strict equal protection test used where a statute burdens a fundamental right or draws a suspect classification, and the applicable standard for measuring the propriety of the classification was whether there was a rational justification for the lines drawn between those paying the tax and allowed to drive and those not paying it and not allowed to drive. Wells v. Malloy, 402 F. Supp. 856, 1975 U.S. Dist. LEXIS 15603 (D. Vt. 1975), aff'd, 538 F.2d 317 (2d Cir. 1976).

    There is a rational basis for suspending a person’s right to drive until he has paid the tax imposed by this chapter, since the tax is a revenue collecting measure, the suspension is clearly designed to aid in the collection, and loss of the right to drive is a great inconvenience operating as an incentive to make prompt payment; therefore, the classification set up by this section, between those paying the tax and allowed to drive and those not paying and not allowed to drive, does not violate the Equal Protection Clause. Wells v. Malloy, 402 F. Supp. 856, 1975 U.S. Dist. LEXIS 15603 (D. Vt. 1975), aff'd, 538 F.2d 317 (2d Cir. 1976).

    This section’s suspension provision is justified by the State’s power to tax, an inherent attribute of sovereignty. Wells v. Malloy, 402 F. Supp. 856, 1975 U.S. Dist. LEXIS 15603 (D. Vt. 1975), aff'd, 538 F.2d 317 (2d Cir. 1976).

    A state may place restrictions on a citizen’s right to use his automobile on public highways for reasons that are not directly related to the health, safety, and welfare of society. Wells v. Malloy, 402 F. Supp. 856, 1975 U.S. Dist. LEXIS 15603 (D. Vt. 1975), aff'd, 538 F.2d 317 (2d Cir. 1976).

    Suspension of driver’s license for nonpayment of tax imposed by this chapter is not so coercive as to be arbitrary or unreasonable, and that plaintiffs were too poor to pay the tax did not make it so, or create an unequal classification for Equal Protection Clause purposes, or amount to a denial of a fundamental right in the constitutional sense. Wells v. Malloy, 402 F. Supp. 856, 1975 U.S. Dist. LEXIS 15603 (D. Vt. 1975), aff'd, 538 F.2d 317 (2d Cir. 1976).

    Limitations period.

    Automatic suspension of driver’s license as statutory sanction for failure to pay purchase and use tax on motor vehicle is not subject to statute of limitations; Department of Motor Vehicles has no duty to continue its attempts to collect the unpaid tax within a specified period of time. Boutin v. Conway, 153 Vt. 558, 572 A.2d 905, 1990 Vt. LEXIS 38 (1990).

    Cited.

    Cited in Leverson v. Conway, 144 Vt. 523, 481 A.2d 1029, 1984 Vt. LEXIS 512 (1984).

    § 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.

    HISTORY: 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 Section 351 of the U.S. Internal Revenue Code, 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 for a period of at least three years 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 for the requisite period.
    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.

    HISTORY: 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.

    History

    References in text.

    Section 351 of the U.S. Internal Revenue Code, referred to in subdiv. (10) of this section, is codified as 26 U.S.C. § 351.

    Revision note—

    Redesignated former subdiv. (14), as added by 1985, No. 124 (Adj. Sess.), § 3, as subdiv. (15) to avoid conflict with subdiv. (14), which had been previously added by 1985, No. 118 (Adj. Sess.), § 3.

    Amendments

    —2017 (Adj. Sess.). Subdiv. (8): 2017, No. 206 , § 13 inserted “sibling,” following “child,”, “during the donor’s life or following his or her death” following “donor”, “, including transfers following a death” following “persons” and added the second sentence.

    Subdiv. (14): 2017, No. 206 , § 7 substituted “acquired by” for “granted” following “vehicle”, “with financial assistance from” for “by” following “veteran”, “U.S. Department of Veterans Affairs,” for “Veterans’ Administration” following “the” in two places, “acquired with such assistance” for “granted” following “one”, “copy of an approved VA Form 21-4502” for “certificate” preceding “issued”, and “financial assistance” for “exemption” following “to the”.

    Subdiv. (23): Added by Act 194.

    —2013 (Adj. Sess.). Subdiv. (12): Substituted “person with a permanent physical disability” for “permanently physically handicapped person” following “operated by a”, “person with a permanent disability” for “permanently handicapped person” twice, and “person with a disability” for “handicapped person” following “provided that the”.

    —2005 (Adj. Sess.). Subdiv. (22): Added.

    —2003 (Adj. Sess.) Subdiv. (18): Substituted “the titles of which have passed to the holder of a certificate of abandoned motor vehicle” for “which have escheated to the state” and “2156 of Title 23” for “2272 of Title 24 when subsequently transferred by the agency of transportation”.

    —2001 (Adj. Sess.) Subdiv. (9): 2001, No. 144 , § 31, added the last sentence.

    Subdiv. (21): Added by 2001, No. 143 (Adj. Sess.), § 64.

    —1999 (Adj. Sess.). Subdiv. (12): Inserted “or leased” following “person to drive, or owned”.

    Subdiv. (20): Added.

    —1997. Subdiv. (12): Inserted “or leased” preceding “and operated” and “or by a parent or guardian of a permanently handicapped person” preceding “for whom a mechanical”.

    —1995 (Adj. Sess.) Act No. 80 added subdivs. (18) and (19).

    Act No. 112 inserted “or titled” following “registered” in subdivs. (8) and (16).

    —1995. Subdiv. (3): Act No. 19 substituted “or leased” for “and registered” following “owned”.

    Subdiv. (9): Act No. 40 added “or paid by a person who, at the time of tax payment to another state, was the spouse of the person no applying for Vermont registration” at the end of the first sentence.

    Subdiv. (10): Act No. 19 substituted “person” for “individual or partnership” following “between that” and “as amended” for “in effect July 1, 1966” following “Code”.

    Subdiv. (17): Added by Act No. 19.

    —1993 (Adj. Sess.). Subdiv. (9): Substituted “motor vehicles” for “pleasure cars acquired outside the state by a resident of Vermont” preceding “on which” and deleted “providing that the state or province collecting such tax would grant the same pro-rate credit for Vermont tax paid under similar circumstances” following “registration in Vermont” in the first sentence.

    Subdiv. (11): Repealed.

    —1993. Subdiv. (16): Added.

    —1991. Subdiv. (1): Inserted “or motor vehicle rented” following “registered”.

    —1987 (Adj. Sess.). Subdiv. (8): Act No. 241 deleted “or” preceding “child” and inserted “grandparent or grandchild” thereafter.

    Subdiv. (12): Amended generally by Act No. 124.

    —1985 (Adj. Sess.). Subdiv. (14): Added by Act No. 118.

    Subdiv. (15): Added by Act No. 124.

    —1981 (Adj. Sess.). Subdiv. (8): Inserted “or to a trust established for the benefit of any such persons or for the benefit of the donor”’ preceding “or subsequently” and substituted “persons” for “individuals” preceding “provided such motor vehicle has been registered”.

    Subdiv. (10): Inserted “or partnership” following “individual” and instituted “the transferor” for “him” following “controlled by”.

    —1979 (Adj. Sess.). Subdiv. (6): Repealed.

    —1977 (Adj. Sess.). Subdiv. (13): Added.

    —1975. Subdiv. (8): Inserted “or subsequently transferred among such individuals” following “child of the donor” and inserted “original” preceding “donor”.

    —1967. Subdiv. (10): Inserted “registered in Vermont by the transferor and” following “motor vehicles”.

    —1966. Made a minor change in punctuation in subdiv. (8), added new subdivs. (9) through (11), and redesignated former subdiv. (9) as subdiv. (12).

    1995, No. 19 amendment. 1995, No. 19 , § 13, eff. April 17, 1995, provided in part that the amendment to this section by §§ 8, 9, and 11a of that act shall apply to payments made or to be made under leases in effect on or after July 1, 1995.

    Retroactive application of 1993 (Adj. Sess.) amendment; procedure for granting refunds for tax paid to other state. 1993, No. 223 (Adj. Sess.), § 3, eff. June 20, 1994, provided: “This act [which amended subdiv. (9) and repealed subdiv. (11) of this section] shall take effect on passage [June 20, 1994] and apply retroactively to affect motor vehicle purchase and use tax paid on motor vehicles registered in this state after August 31, 1980. Notwithstanding the provisions of 12 V.S.A. § 517 , any tax collected under 32 V.S.A. chapter 219 after August 31, 1980 which would not have been collected under that chapter as amended by this act shall be refunded by the commissioner of motor vehicles, without interest, if application for the refund was or is made in writing to the commissioner with proof to the satisfaction of the commissioner that the applicant paid state sales or use tax on a motor vehicle to another state before registering that motor vehicle in Vermont. The commissioner may consider any relevant evidence to establish the tax paid to another state. Applications for a refund shall not be accepted after December 31, 1995. A refund shall be made payable to the taxpayer from whom the tax was collected, or to the lawful heirs, successors or assigns of the taxpayer.

    “A qualified applicant who cannot document the actual tax paid to another state shall be entitled to a refund equal to the lesser of the tax paid to Vermont or an amount computed by applying the tax rate that was in effect in the state of first taxation to the value of the motor vehicle. For purposes of calculating such a refund, both the tax rate in the state of first taxation and the value of the motor vehicle shall be determined as of the date tax was paid to Vermont.

    “To qualify for such a refund, an applicant must certify under the pains and penalties of perjury that the applicant, prior to registering a motor vehicle in Vermont, paid a purchase and use tax on that motor vehicle to another state. The applicant must also provide evidence that the applicant:

    “(a) registered the motor vehicle in a state that requires payment of such tax upon registration; or

    “(b) titled the motor vehicle in a state that requires payment of such tax upon titling of a motor vehicle.

    “The commissioner will research the tax rates in effect in other states at all times relevant to determining an applicant’s eligibility for a refund. The commissioner will provide relevant information in the possession of the department of motor vehicles for the purpose of calculating refunds. This information shall include: actual purchase and use tax payment to the State of Vermont, the date of such payment, the value of the vehicle at the time of such payment, and the purchase and use tax rate in the state of previous ownership on the date of payment in Vermont. The commissioner shall furthermore fill in this information and compute the refund due when in receipt of a certified application on a form provided by the commissioner.

    “Acceptance of a refund will constitute final action on an application for any single vehicle.

    “The commissioner shall process all applications for refund in a timely manner and shall make available forms on which a refund may be requested.”

    Refund claims for married couples for tax paid to other state. 1995, No. 40 , § 1, eff. April 17, 1995, provided: “In the case of timely claims made under No. 223 of the Acts of 1994 [which amended this section] for refunds of Vermont purchase and use tax on account of sales or use tax paid on a vehicle to another state, if the vehicle for which a refund is sought was owned at the time of tax payment to the other state by one spouse or both spouses of a married couple, and at the time of the refund claim was owned by either or both of the same two persons, the claim if otherwise valid shall not be denied.”

    1995, No. 40 , § 3, eff. April 17, 1995, provided that § 1 of that act, which is set out in this note above, shall apply to claims made after June 16, 1994, and before January 1, 1996.

    Appeal of decision to grant or refuse refund for tax paid to other state. 1993, No. 223 (Adj. Sess.), § 4, eff. June 20, 1994, provided: “Any person aggrieved by a decision of the commissioner to grant or refuse to grant a refund under Sec. 3 of this act [which is set out in a note above] may appeal the decision in accordance with 23 V.S.A. § 105 . Notwithstanding 23 V.S.A. § 105 (b), a person aggrieved by a decision of a hearing under 23 V.S.A. § 105(a) , may appeal that decision to small claims court. Such appeal shall be on the record.”

    Repeal of subdiv. (21). 2001, No. 143 (Adj. Sess.), § 60(f), provided that § 64 of that act [which added subdiv. (21) of this section] is repealed on July 1, 2004.

    CROSS REFERENCES

    International Registration Plan, see 23 V.S.A. chapter 35.

    ANNOTATIONS

    Credit for out-of-state tax.

    Subdiv. (9) of this section, providing a credit only to those who are residents of Vermont at the time they paid a sales tax to another state, creates an arbitrary distinction that violates the Equal Protection Clause of the Fourteenth Amendment, since residence at the time of purchase is a wholly arbitrary basis to distinguish among present Vermont residents. Williams v. Vermont, 472 U.S. 14, 105 S. Ct. 2465, 86 L. Ed. 2d 11, 1985 U.S. LEXIS 90 (1985).

    The distinction created by subdiv. (9) of this section between those who were residents of Vermont at the time they purchased their cars and those who were not bears no relation to the purpose of the use tax, which is to raise revenue for the maintenance and improvement of Vermont roads. Williams v. Vermont, 472 U.S. 14, 105 S. Ct. 2465, 86 L. Ed. 2d 11, 1985 U.S. LEXIS 90 (1985).

    The fact that all those not benefited by subdiv. (9) of this section are treated equally has no bearing on the legitimacy of its distinction between residents and nonresidents. Williams v. Vermont, 472 U.S. 14, 105 S. Ct. 2465, 86 L. Ed. 2d 11, 1985 U.S. LEXIS 90 (1985).

    This chapter does not violate the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution by its failure to afford a new resident who registers a vehicle in Vermont credit for a sales tax paid on the vehicle that was purchased, used, and registered in a former state of residence, since the exempt classification established by this section is rationally related to the legitimate purpose of promoting commerce within the State and raising taxes to help maintain and improve the State and interstate highway system, and it is not an arbitrary one because a new resident who registers his vehicle pays the same tax and is treated in exactly the same manner as all nonexempt persons. Leverson v. Conway, 144 Vt. 523, 481 A.2d 1029, 1984 Vt. LEXIS 512 (1984), app. dismissed, 469 U.S. 926, 105 S. Ct. 316, 83 L. Ed. 2d 255, 1984 U.S. LEXIS 4080 (1984), vacated, 472 U.S. 1014, 105 S. Ct. 3471, 87 L. Ed. 2d 608, 1985 U.S. LEXIS 2365 (1985).

    Transfer to business entity.

    Where corporation claimed that it was entitled to an exemption from the motor vehicle purchase and use tax, allegedly due as a result of a transfer to it of rental vehicles from a sister corporation in exchange for 100% of its stock, under subdiv. (10) of this section, which at the time of the transfer applied to individuals, since the definition of the word “person” as applied to purchase and use taxes differentiated between individuals and corporations, and a 1982 amendment to this subdivision added an exemption for partnerships, since the Legislature could have added an exemption for corporations by the same amendment, if it had so intended, the Supreme Court would not judicially expand the provision beyond its plain meaning to include corporations. Northern Rent-A-Car, Inc. v. Conway, 143 Vt. 220, 464 A.2d 750, 1983 Vt. LEXIS 502 (1983).

    —Dealer registration requirement.

    32 V.S.A. § 8911(8) violates both the Equal Protection Clause and the Commerce Clause of the United States Constitution. Pawa v. McDonald, 921 F. Supp. 227, 1996 U.S. Dist. LEXIS 5256 (D. Vt. 1996).

    Cited.

    Cited in Williams v. State, 156 Vt. 42, 589 A.2d 840, 1990 Vt. LEXIS 271 (1990); Williams v. Vermont, 472 U.S. 14, 105 S. Ct. 2465, 86 L. Ed. 2d 11, 1985 U.S. LEXIS 90 (1985), Barringer v. Griffes, 964 F.2d 1278, 1992 U.S. App. LEXIS 11136 (2d Cir. 1992).

    Notes to Opinions

    Altered vehicle controls.

    Vehicle controls, standard or optional, offered to the public generally for a particular type of vehicle are not “altered vehicle controls” referred to in subdivision (12) of this section. 1962-64 Vt. Op. Att'y Gen. 268.

    Devisees and donees.

    By the provisions of subdiv. (8) of this section, the devisee of a motor vehicle in an estate and also an individual donee are not subject to the provisions of this chapter. 1966-68 Vt. Op. Att'y Gen. 134.

    Physically handicapped.

    A physically handicapped owner is one who has lost the efficient use of an arm, hand, leg, or foot to such an extent that he cannot drive safely without altered controls designed specifically for his use. 1962-64 Vt. Op. Att'y Gen. 268.

    Religious or charitable institutions.

    A nonprofit educational institution, if designed and administered to benefit the public, should be exempt, under subdiv. (3) of this section. 1960-62 Vt. Op. Att'y Gen. 72.

    A corporation such as the Greater Vermont Association, the State Chamber of Commerce, Inc., organized not for profit and providing that no net earning shall inure to any member, having as its purpose the development and promotion of business, is not a charitable institution entitled to exemption from the automobile sales tax under subdiv. (3) of this section. 1964-66 Vt. Op. Att'y Gen. 167.

    Transfer to business entity.

    Section 351 of the United States Internal Revenue Code, referred to in subdiv. (10) of this section, was intended to allow tax free reorganization that would strengthen the financial condition of a corporation and it represents a recognition of the fact that a technical gain might be realized but the taxpayer actually received no cash profit. 1966-68 Vt. Op. Att'y Gen. 132.

    If a parent corporation transfers equipment to its corporate subsidiary for stock or securities in such corporation, it will not be liable for payment of the purchase and use tax. 1966-68 Vt. Op. Att'y Gen. 132.

    —Dealer registration requirement.

    Classification whereby persons in the business of buying and selling cars who have the capital to become registered dealers are not subject to the use tax, but those small businesses that cannot become registered dealers because of lack of funds are subject to the tax is arbitrarily unreasonable and unconstitutional. 1964-66 Vt. Op. Att'y Gen. 174.

    § 8912. Allocation of funds.

    The taxes collected under this chapter shall be paid into and accounted for in the Transportation Fund.

    HISTORY: Added 1959, No. 327 (Adj. Sess.), § 11, eff. March 1, 1960; amended 1981, No. 87 , § 4.

    History

    Amendments

    —1981. Changed “highway fund” to “transportation fund”.

    ANNOTATIONS

    Cited.

    Cited in Williams v. Vermont, 472 U.S. 14, 105 S. Ct. 2465, 86 L. Ed. 2d 11, 1985 U.S. LEXIS 90 (1985).

    § 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.

    HISTORY: Added 1959, No. 327 (Adj. Sess.), § 12, eff. March 1, 1960; amended 1983, No. 251 (Adj. Sess.), § 7, eff. Jan. 1, 1985.

    History

    Revision note

    —2008. Substituted “subsection” for “section” preceding “8903(d)” to conform reference to V.S.A. style.

    Amendments

    —1983 (Adj. Sess.). Inserted “including rental companies as provided in section 8903(d)” following “authorized representatives” in the first sentence.

    § 8914. Refund.

    Any overpayment of such tax as determined by the Commissioner shall be refunded.

    HISTORY: Added 1959, No. 327 (Adj. Sess.), § 13, eff. March 1, 1960.

    ANNOTATIONS

    Construction with other laws.

    Federal constitutional challenge to motor vehicle use tax statute was not barred by Tax Injunction Act, 28 U.S.C. § 1341, since Vermont’s refund statute did not provide a plain judicial remedy. Barringer v. Griffes, 964 F.2d 1278, 1992 U.S. App. LEXIS 11136 (2d Cir. 1992).

    Statute of limitations.

    The one-year statute of limitation under 12 V.S.A. § 517 applies to refunds under this section. Marsicovetere v. Department of Motor Vehicles, 172 Vt. 562, 772 A.2d 540, 2001 Vt. LEXIS 142 (2001) (mem.).

    The term “action” as used in 12 V.S.A. § 517 , applies equally to Department of Motor Vehicles administrative proceedings and court actions. Marsicovetere v. Department of Motor Vehicles, 172 Vt. 562, 772 A.2d 540, 2001 Vt. LEXIS 142 (2001) (mem.).

    Suit against state.

    Because Act No. 223 of June 20, 1994, which required the Commissioner to refund wrongfully assessed use tax collected after August 31, 1980, provided plaintiffs the opportunity for a full hearing and a judicial determination of their constitutional objections to the refund procedure, and authorized appeal to higher state courts, federal jurisdiction was barred by the Tax Injunction Act, 28 U.S.C. § 1341. Murray v. McDonald, 988 F. Supp. 420, 1997 U.S. Dist. LEXIS 20311 (D. Vt. 1997), aff'd, 157 F.3d 147, 1998 U.S. App. LEXIS 24602 (2d Cir. 1998).

    Dismissal of taxpayers’ suit against the State seeking damages for payment of taxes under unconstitutional motor vehicle use tax on basis of sovereign immunity did not deprive plaintiffs of their due process right to redress where, once United States Supreme Court held the tax facially unconstitutional, the Commissioner of the Department of Motor Vehicles had statutory jurisdiction to adjudicate constitutional claims in determining agency administration of delegated authority and statutory mandate to refund any overpayment of taxes. Williams v. State, 156 Vt. 42, 589 A.2d 840, 1990 Vt. LEXIS 271 (1990), cert. denied, 502 U.S. 821, 112 S. Ct. 81, 116 L. Ed. 2d 54, 1991 U.S. LEXIS 5600 (1991), cert. denied, 502 U.S. 984, 112 S. Ct. 590, 116 L. Ed. 2d 614, 1991 U.S. LEXIS 6964 (1991).

    Trial court properly dismissed taxpayers’ suit against the State seeking damages for taxes paid under unconstitutional motor vehicle use tax; as State’s statutory remedy was available to plaintiffs and comported with requirements of due process, the State was entitled to dismissal on the basis of sovereign immunity from suit in a court of plenary jurisdiction where it had not waived such immunity. Williams v. State, 156 Vt. 42, 589 A.2d 840, 1990 Vt. LEXIS 271 (1990), cert. denied, 502 U.S. 821, 112 S. Ct. 81, 116 L. Ed. 2d 54, 1991 U.S. LEXIS 5600 (1991), cert. denied, 502 U.S. 984, 112 S. Ct. 590, 116 L. Ed. 2d 614, 1991 U.S. LEXIS 6964 (1991).

    § 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.

    HISTORY: Added 1966, No. 66 (Sp. Sess.), § 6.

    § 8916. Bonds.

    1. 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.
    2. 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.
    3. 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.
    4. 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.

    HISTORY: 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).

    History

    Revision note

    —2011. In subsec. (a), substituted “commissioner of financial regulation” for “commissioner of banking, insurance, securities, and health care administration” in the first sentence in accordance with 2011, No. 78 (Adj. Sess.), § 2.

    Amendments

    —1995 (Adj. Sess.) Subsec. (a): Substituted “commissioner of banking, insurance, securities, and health care administration” for “commissioner of banking, insurance, and securities” in the first sentence.

    —1989 (Adj. Sess.). Substituted “commissioner of banking, insurance, and securities” for “commissioner of banking and insurance” in the first sentence of subsec. (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.

    HISTORY: Added 1983, No. 251 (Adj. Sess.), § 11, eff. Jan. 1, 1985.

    § 8918. Records.

    1. 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.
    2. 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.

    HISTORY: Added 1983, No. 251 (Adj. Sess.), § 12, eff. Jan. 1, 1985.

    History

    Revision note

    —2008. In subsec. (a), substituted “subsection” for “section” preceding “8903(d)” to conform reference to V.S.A. style.

    § 8919. Additional assessments.

    1. 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.
    2. 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.

    HISTORY: Added 1983, No. 251 (Adj. Sess.), § 13, eff. Jan. 1, 1985.

    History

    Revision note

    —2008. In subsec. (b), substituted “subsection” for “section” preceding “8903(d)” to conform reference to V.S.A. style.

    Revision note—. In subsec. (b), substituted “section 8905(d) of this title” for “section 8905(d)” to conform reference to V.S.A. style.

    § 8920. Interest; penalties.

    1. 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.
    2. 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.

    HISTORY: 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 him or her, for the period for which the rental company failed to make the report, and shall assess the tax due from such rental company, adding to the amount thus determined a penalty of 50 percent thereof. 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.

    HISTORY: Added 1983, No. 251 (Adj. Sess.), § 15, eff. Jan. 1, 1985.

    § 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.

    HISTORY: Added 1983, No. 251 (Adj. Sess.), § 16, eff. Jan. 1, 1985.

    History

    Revision note—

    In the first sentence, substituted “section 8919 or 8920 of this title” for “section 8919 or 8902” to correct an error and to conform reference to V.S.A. style.

    § 8923. License required.

    1. It is unlawful for any person to act as a rental company without being licensed as such.
    2. 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.
    3. 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.

    HISTORY: Added 1983, No. 251 (Adj. Sess.), § 17, eff. Jan. 1, 1985.

    Chapter 221. Itinerant Photographers

    §§ 9001-9008. Repealed. 1991, No. 167 (Adj. Sess.), § 66(3).

    History

    Former §§ 9001-9008. Former § 9001, relating to definition of “itinerant photographer” was derived from V.S. 1947, § 1214 and 1941, No. 25 , § 1.

    Former § 9002, relating to the license contents and fees, was derived from V.S. 1947, §§ 1215, 1219; 1941, No. 25 , §§ 2, 6, and amended by 1961, No. 217 , § 5.

    Former § 9003, relating to license applications, was derived from V.S. 1947, § 1216; 1941, No. 25 , § 3, and amended by 1961, No. 217 , § 5.

    Former § 9004, relating to refusal and revocation of license, was derived from V.S. 1947, § 1217; 1941, No. 25 , § 4, and amended by 1961, No. 217 , § 5.

    Former § 9005, relating to term of license, was derived from V.S. 1947, § 1218, and 1941, No. 25 , § 5.

    Former § 9006, relating to local licenses, was derived from V.S. 1947, §§ 1219, 1222; 1941, No. 25 , §§ 6, 9, and amended by 1961, No. 217 , § 5.

    Former § 9007, relating to penalties for violations of chapter 221, was derived from V.S. 1947, §§ 1220, 1221, 1223, and 1941, No. 25 , §§ 7, 8, 10.

    Former § 9008, relating to construction of chapter with local law, was derived from V.S. 1947, § 1224, and 1941, No. 25 , § 11.

    Chapter 223. Itinerant Vendors

    §§ 9101-9115. Repealed. 1991, No. 167 (Adj. Sess.), § 66(4).

    History

    Former §§ 9101-9115. Former § 9101, definition of “itinerant vendor,” was derived from V.S. 1947, §§ 1198, 1211; P.L. §§ 1169, 1182; G.L. §§ 6633, 6634; No. 53, §§ 15, 17; P.S. §§ 5545, 5546; V.S. §§ 4748, 4749, and 1894, No. 59 , §§ 1, 2.

    Former § 9102, relating to licenses requirement generally, was derived from V.S. 1947, § 1199; P.L. § 1170; G.L. § 6638; 1917, No. 53 , § 20; P.S. § 5550; V.S. § 2752, and 1894, No. 59 , § 5.

    Former § 9103, relating to contents and recording of license applications generally, was derived from V.S. 1947, § 1200; P.L. § 1171; G.L. § 6640; 1917, No. 53 , § 22; P.S. § 5552; V.S. § 4754, 1894, No. 59 , § 7, and amended by 1961, No. 217 , § 11.

    Former § 9104, relating to State license applications, was derived from V.S. 1947, § 1201; P.L. § 1172; G.L. § 6639; 1917, No. 53 , § 21; P.S. § 5551; V.S. § 4753, 1894, No. 59 , § 6, and amended by 1961, No. 217 , § 11.

    Former § 9105, relating to the nontransferability of State licenses, was derived from V.S. 1947, § 1202; P.L. § 1173; G.L. § 6639; 1917, No. 53 , § 21; P.S. § 5551; V.S. § 4753, and 1894, No. 59 , § 10.

    Former § 9106, relating to cancellation of State licenses, was derived from V.S. 1947, § 1203; P.L. § 1174; G.L. § 6641; 1917, No. 53 , § 23; P.S. § 5553; V.S. 4757, and 1894, No. 59 , § 10.

    Former § 9107, relating to State licensure requirements, was derived from V.S. 1947, § 1204; P.L. § 1175; G.L. § 6642; 1917, No. 53 , § 24; P.S. § 5554; V.S. § 4755, and 1894, No. 59 , § 8.

    Former § 9108, relating to application for local license, was derived from V.S. 1947, § 1205; P.L. § 1176; G.L. § 6643; 1917, No. 53 , § 25; P.S. § 5555; V.S. § 4757, and 1894, No. 59 , § 9.

    Former § 9109, relating to issuance, fees, and term of local licenses, was derived from V.S. 1947, § 1206; P.L. § 1177; G.L. § 6644; 1917, No. 53 , § 26; P.S. § 5556; V.S. § 4756, and 1894, No. 59 , § 9.

    Former § 9110, relating to local license fee when provisions of former § 9109 inapplicable, was derived from V.S. 1947, § 1207; P.L. § 1178; G.L. § 6645; 1917, No. 53 , § 27; P.S. § 5557; V.S. § 4756, and 1894, No. 59 , § 9.

    Former § 9111, relating to return of deposit upon cancellation of State license, was derived from V.S. 1947, § 1208; P.L. § 1179; G.L. § 6646; 1917, No. 53 , § 28; P.S. § 5558; V.S. § 4758, 1894, No. 59 , § 11, and amended by 1961, No. 217 , § 11.

    Former § 9112, relating to use of deposit for payment of fines, was derived from V.S. 1947, § 1209; P.L. § 1180; G.L. § 6647; 1917, No. 53 , § 29; P.S. § 5559; R. 1906, § 5419; V.S. § 4759, and 1894, No. 59 , § 12.

    Former § 9113, relating to use of deposit for payment of claims and costs, was derived from V.S. 1947, § 1210; P.L. § 1181; G.L. § 6648; 1917, No. 53 , § 30; P.S. § 5560; R. 1906, § 5420; V.S. § 4759, and 1894, No. 59 , § 12.

    Former § 9114, relating to penalties for selling without a license, was derived from V.S. 1947, § 1212; P.L. § 1183; G.L. § 6635; 1917, No. 53 , § 17; P.S. § 5547; V.S. § 4750, and 1894, No. 59 , § 3.

    Former § 9115, relating to penalty for advertising without a license, was derived from V.S. 1947, § 1213; P.L. § 1184; G.L. § 6637; 1917, No. 53 , § 18; P.S. § 5548; V.S. § 4751, and 1894, No. 59 , § 4.

    Chapter 225. Meals and Rooms Tax

    History

    1959, No. 217 , § 1, provided: “this act [this chapter] shall be known and cited as the ‘Meals and Rooms Tax Act’.”

    Subchapter 1. General Provisions

    § 9201. Statutory purposes.

    1. 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.
    2. 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.
    3. 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.
    4. The statutory purpose of the exemption for meals provided at hospitals and convalescent and nursing homes in subdivision 9202(10)(D)(ii)(IV) of this title is to reduce the overall costs of health care and senior care in Vermont.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. The statutory purpose for the exemption for cannabis and cannabis products as defined under 7 V.S.A. § 831 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.

    HISTORY: Added 2013, No. 200 (Adj. Sess.), § 5; amended 2019, No. 164 (Adj. Sess.), § 17b.

    History

    Revision note

    —2020. In subsec. (n), substituted reference to “9202(10)(D)(iv)” for “9202(10)(D)(iii)” because subdiv. (10)(D)(iii), as added by 2019, No. 164 (Adj. Sess.), § 17a, was redesignated as subdiv. (10)(D)(iv) to avoid conflict with subdiv. (10)(D)(iii), as added by 2019, No. 51 , § 12.

    Amendments

    —2019 (Adj. Sess.). Subsec. (n): Added.

    Prior law.

    Prior law § 9201. Prior law § 9201, relating to administration of chapter, was derived from 1959, No. 217 , § 2. For provisions relating to administration of taxes by Commissioner generally, see § 3201 of this title. This section was previously repealed by 1991, No. 186 (Adj. Sess.), § 8(h), eff. May 7, 1992.

    § 9202. Definitions.

    The following words, terms, and phrases when used in this chapter shall have the meanings ascribed to them in this section unless the context clearly indicates a different meaning:

    1. “Commissioner” means the Commissioner of Taxes appointed under section 3101 of this title and his or her 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:
      1. 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;
      2. 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;
      3. 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;
      4. 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:
      1. 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.
      2. 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.
      3. Regardless where sold and whether or not prepackaged:
        1. sandwiches of any kind except frozen;
        2. food or beverage furnished from a salad bar;
        3. heated food or beverage; and
        4. food or beverage sold through a vending machine.
      4. “Taxable meal” shall not include:
        1. Food or beverage, other than that taxable under subdivision (10)(C) of this section, 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.
        2. Food or beverage, including that described in subdivision (10)(C) of this section, or alcoholic beverages:
          1. 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;
          2. served or furnished on the premises of a school as defined herein;
          3. 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;
          4. prepared by the employees thereof and served in any hospital licensed under 18 V.S.A. chapter 43;
          5. furnished by any person while transporting passengers for hire by train, bus, or airplane, if furnished on any train, bus, or airplane;
          6. furnished by any person while operating a summer camp for children, in such camp;
          7. 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;
          8. furnished to any employee of an operator as remuneration for his employment;
          9. provided to the elderly pursuant to the Older Americans Act, 42 U.S.C. chapter 35, subchapter III;
          10. purchased under the USDA Supplemental Nutrition Assistance Program (SNAP);
          11. served or furnished on the premises of a continuing care retirement community certified under 8 V.S.A. chapter 151; or
          12. 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 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.
        3. 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.
        4. Subdivision (10)(D)(iv) effective March 1, 2022.

          Cannabis or cannabis products as defined under 7 V.S.A. § 831 .

    11. “Alcoholic beverages” means any malt beverages, vinous beverages, spirits, or fortified wines as defined in 7 V.S.A. § 2 and served for immediate consumption. “Alcoholic beverages” shall be exempt from the tax imposed under section 9241 of this chapter when 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:
      1. 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.
      2. 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.
      3. “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.

    HISTORY: 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.

    History

    References in text.

    Section 3101 of this title, as amended, referred to in subdiv. (1) of this section, no longer relates to appointment of the Commissioner of Taxes. The subject matter is now covered by 3 V.S.A. § 2251 .

    Revision note

    —2020. Subdiv. (10)(D)(iii), as added by 2019, No. 164 (Adj. Sess.), was redesignated as subdiv. (10)(D)(iv) to avoid conflict with subdiv. (10)(D)(iii) as added by 2019, No. 51 .

    —2013. In subdiv. (3), deleted “but is not limited to” following “includes” in the second sentence in accordance with 2013, No. 5 , § 4.

    Revision note—. Reference to “forests and parks” in subdiv. (3)(B) changed to “forests, parks and recreation” to conform with new title of department. See 3. V.S.A. § 2872.

    Amendments

    —2021. Subdiv. (4): Inserted “and taxable meal facilitators” following “agents” at the end of the second sentence.

    Subdiv. (10): Amended generally.

    Subdiv. (11): Substituted “shall be exempt from the tax imposed under section 9241 of this chapter when served” for “do not include any beverages served” and inserted “food or” preceding “beverages” and “or alcoholic beverages” following “beverages”.

    Subdiv. (21): Added.

    —2019 (Adj. Sess.). Subdiv. (10)(D)(ii)(IX): Act No. 131 substituted “III” for “VII”.

    Subdiv. (10)(D)(iv): Added by Act No. 164.

    —2019. Subdiv. (4): Act No. 71 added the second sentence.

    Subdiv. (8): Act No. 71 added the second sentence.

    Subdiv. (10)(D)(iii): Added by Act No. 51.

    Subdiv. (20): Added by Act No. 71.

    —2018 (Sp. Sess.) Subdiv. (3): substituted “that” for “which” near the beginning of the first sentence, and inserted the second sentence.

    Subdiv. (3)(C): deleted “and” at the end of the sentence.

    —2015 (Adj. Sess.). Subdiv. (4): Inserted “or alcoholic beverage” following “taxable meal” in the first sentence by Act No. 144.

    Subdiv. (11): Amended generally by Act. No. 144.

    Subdiv. (15)(D): Deleted by Act No. 134.

    —2015. Subdiv. (10)(C)(iv): Added.

    Subdiv. (19): Added.

    —2013 (Adj. Sess.). Subdiv. (10)(D)(ii)(X): Act No. 174 substituted “under the USDA Supplemental Nutrition Assistance Program (SNAP)” for “with food stamps” at the end.

    Subdiv. (18): Act No. 96 deleted “handicap or” following “individuals with a”.

    —2011 (Adj. Sess.). Rewrote subdiv. (3)(A).

    In subdiv. (10)(D)(ii), substituted “18 V.S.A. chapter 43” for “chapter 43 of Title 18, or a sanitorium, convalescent home, nursing home or home for the aged” in subdiv. (IV), substituted “8 V.S.A. chapter 151” for “chapter 151 of Title 8” in subdiv. (XI), and added subdiv. (XII); and added subdiv. (18).

    —1999. Subdiv. (4): Inserted “or other entity” following “is a corporation” and “of such corporation” in the second sentence.

    —1993 (Adj. Sess.). Amended subdiv. (10) generally, substituted “9202(10)(D)(ii)” for “9202(10)” in the second sentence of subdiv. (11) and added subdivs. (12)-(17).

    —1991 (Adj. Sess.). Subdiv. (8): Added “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” following “whatsoever” in the first sentence.

    —1989 (Adj. Sess.). Subdiv. (11): Added the second sentence.

    —1989. Subdiv. (10): Substituted “excluding” for “including” preceding “alcoholic” in the introductory paragraph.

    Subdiv. (11): Added.

    —1987 (Adj. Sess.). Subdiv. (3)(d): Added.

    Subdiv. (10)(k): Added.

    —1987. Subdiv. (10)(j): Added.

    —1973. Subdiv. (3): Amended generally.

    Subdiv. (4): Amended generally.

    Subdiv. (10): Added.

    —1964. Section amended generally.

    —1963. Rewrote the definition of taxable meal.

    Effective date of 2021 amendments to subdivs. (4) and (10)(A)-(B) and enactment of subdiv. (21). 2021, No. 73 , § 27(1) provides that the amendments to subdivs. (4) and (10)(A)-(B) and the enactment of subdiv. (21) by § 1 of that act shall take effect on August 1, 2021.

    Retroactive effective date and applicability of 2021 amendments to subdivs. (10)(D)(ii) and (11). 2021, No. 73 , § 27(2) provides that the amendments to subdivs. (10)(D)(ii) and (11) by § 2 of that act shall take effect retroactively on April 1, 2021 and apply to sales made on and after April 1, 2021.

    Effective date of amendment—2019 (Adj. Sess.). 2019, No. 164 (Adj. Sess.), § 33(d) provided that § 17a [which added subdiv. (10)(D)(iv)] shall take effect March 1, 2022.

    —2011 (Adj. Sess.). 2011, No. 143 (Adj. Sess.), § 63(11) provided that §§ 59, 60 and 61, which amended this section, shall take effect on passage and apply retroactively to July 1, 2012.

    Application and effect of 1991 (Adj. Sess.) amendment. 1991, No. 186 (Adj. Sess.), § 37, eff. May 7, 1992, provided that the amendment to this section by § 19 of that act shall be effective for any monies received in payment on or after May 7, 1992.

    ANNOTATIONS

    Hotel.

    Privately-owned condominium unit offered to the public as sleeping accommodations for a consideration is a “hotel” within the meaning of subdiv. (3) of this section. Bedford v. Vermont Department of Taxes, 146 Vt. 376, 505 A.2d 658, 1985 Vt. LEXIS 403 (1985).

    Occupancy.

    Since the definition of “occupancy” in subdiv. (6) of this section includes a lessee’s right to the use and possession of leased rooms and nothing within subdiv. (6) indicates a legislative intent to tax only fully vested rights to occupancy, all monies paid by a lessee for the rental of a condominium unit are potentially subject to the tax imposed by § 9241 of this title. Bedford v. Vermont Department of Taxes, 146 Vt. 376, 505 A.2d 658, 1985 Vt. LEXIS 403 (1985).

    Rent.

    Cancellation deposits and booking fees received by taxpayers acting as agents for individual owners of condominium units publicly offered for rental, were occupancy rentals within the meaning of subdiv. (8) of this section. Bedford v. Vermont Department of Taxes, 146 Vt. 376, 505 A.2d 658, 1985 Vt. LEXIS 403 (1985).

    Taxable meal.

    Taxpayer, which operated a movie theater, was properly assessed meals and rooms tax on popcorn and nachos it sold at its snack bar. Under the applicable regulation, the unpackaged popcorn and nachos were operator-prepared snacks sold by an “eating and drinking establishment.” Eurowest Cinemas, LLC v. Vt. Dep't of Taxes, 2009 VT 2, 185 Vt. 599, 969 A.2d 688, 2009 Vt. LEXIS 6 (2009) (mem.).

    Cited.

    Cited in In re Central Vermont Public Service Corp., 167 Vt. 626, 711 A.2d 1158, 1998 Vt. LEXIS 63 (1998) (mem.).

    § 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.

    HISTORY: Added 1959, No. 217 , § 19; amended 1975, No. 154 (Adj. Sess.), § 3, eff. date, see note below.

    History

    Amendments

    —1975 (Adj. Sess.). Increased time for preservation of records from “two” to “three” years.

    Effective date of amendments—

    1975 (Adj. Sess.) amendment. 1975, No. 154 (Adj. Sess.), § 16, provided, in part, that § 3, which amended this section, “shall be effective with respect to assessments made and returns filed after June 30, 1976”.

    § 9204. Repealed. 1987, No. 278 (Adj. Sess.), § 4, eff. June 21, 1988.

    History

    Former § 9204. Former § 9204, relating to confidentiality of records, was derived from 1959, No. 217 , § 23, and amended by 1963, No. 65 ; 1975, No. 154 (Adj. Sess.), § 4. The subject matter is now covered by § 3102 of this title.

    § 9205. Repealed. 1963, No. 227, § 8.

    History

    Former § 9205. Former § 9205, relating to commission for keeping prescribed records, was derived from 1959, No. 217 , § 24. The subject matter is now covered by §§ 9203 and 9242 of this title.

    § 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.

    HISTORY: Added 1959, No. 217 , § 15; amended 1979, No. 105 (Adj. Sess.), § 31.

    History

    Amendments

    —1979 (Adj. Sess.). Deleted “certified or registered” preceding “mail” in the first sentence and added the second and third sentences.

    § 9207. Repealed. 1991, No. 186 (Adj. Sess.), § 10(a), eff. May 7, 1992.

    History

    Former § 9207. Former § 9207, relating to bulk sales, transfers, or assignment of business assets, was derived from 1989, No. 222 (Adj. Sess.), § 15. The subject matter is now covered by § 3260 of this title.

    Subchapter 2. Imposition and Collection of Tax

    § 9241. Imposition of tax.

    1. An operator shall collect a tax of nine percent of the rent of each occupancy.
    2. 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:

      Click to view

    3. 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:

      Click to view

    $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

    $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

    HISTORY: 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.

    History

    Amendments

    —1997. Subsec. (a): Substituted “nine percent” for “seven percent”.

    Subsec. (b): Substituted “nine percent” for “seven percent” in the introductory paragraph and rewrote the formula.

    —1991. Act No. 32 § 18, substituted “eight” for “seven” preceding “percent” in subsecs. (a) and (b) and rewrote the formula contained in subsec. (b).

    Act No. 32, § 20, substituted “seven percent” for “eight percent” in subsecs. (a) and (b) and rewrote the formula contained in subsec. (b).

    —1989 (Adj. Sess.). Act No. 222 amended the section generally.

    Act No. 210 substituted “seven percent” for “six percent” in subsec. (a) and rewrote subsec. (b).

    —1989. Inserted “ten percent on the sale of alcoholic beverages” following “occupancy”.

    —1983 (Adj. Sess.). Increased tax generally.

    —1969. Increased tax.

    —1967 (Adj. Sess.). Increased tax.

    —1963. Section amended generally.

    ANNOTATIONS

    Construction with other laws.

    Since the definition of “occupancy” in § 9302(6) of this title includes of lessee’s right to the use and possession of leased rooms and nothing within that section indicates a legislative intent to tax only fully vested rights to occupancy, all monies paid by a lessee for the rental of a condominium unit are potentially subject to taxation under this section. Bedford v. Vermont Department of Taxes, 146 Vt. 376, 505 A.2d 658, 1985 Vt. LEXIS 403 (1985).

    Withholding taxes, imposed by §§ 5841 and 5842 of this title, and meals and rooms taxes, imposed by this section, assessed by the Vermont Department of Taxes against a debtor in bankruptcy are excepted from the discharge within the purview of 11 U.S.C. § 523(a) (1)(A); the fact that the claim of the Department is secured or unsecured in immaterial. In re Safka, 24 B.R. 87, 1982 Bankr. LEXIS 3185 (Bankr. D. Vt. 1982).

    Where this section taxed meals for which the charge was 14 cents or more, and § 9242 of this title provided that a tax of five percent of gross receipts received from taxable meals was levied and was to be paid to the State by operator of establishment in lieu of collection and payment to State of tax on each meal, food establishment owner properly deducted from gross receipts that portion thereof representing meals for which the charge was less than 14 cents. Quero v. State Tax Department, 131 Vt. 326, 306 A.2d 684, 1973 Vt. LEXIS 310 (1973).

    Liability for tax.

    Taxpayer, which operated a movie theater, was properly assessed meals and rooms tax on popcorn and nachos it sold at its snack bar. Under the applicable regulation, the unpackaged popcorn and nachos were operator-prepared snacks sold by an “eating and drinking establishment.” Eurowest Cinemas, LLC v. Vt. Dep't of Taxes, 2009 VT 2, 185 Vt. 599, 969 A.2d 688, 2009 Vt. LEXIS 6 (2009) (mem.).

    Taxable receipts.

    Where taxpayers, who publicly offered for lease privately-owned condominium units for short-term periods, kept cancellation deposits and booking fees when a lessee cancelled his lease prior to occupancy, these monies constituted gross receipts for a contingent right of occupancy and, therefore, were subject to taxation under this section. Bedford v. Vermont Department of Taxes, 146 Vt. 376, 505 A.2d 658, 1985 Vt. LEXIS 403 (1985).

    Notes to Opinions

    Liability for tax.

    When the State makes direct payment for meals and rooms charges, as when it pays the charges for its employees, the meals and rooms tax does not apply; and if an employee of the State pays the charges, including a tax, the State may, when reimbursing the employee for the charges, also reimburse the employee for tax paid. 1970-72 Vt. Op. Att'y Gen. 454.

    § 9242. Collection of meals and rooms tax by operator and imposition of gross receipts tax.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: 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.

    History

    Amendments

    —1997. Subsec. (c): Substituted “nine percent” for “seven percent” in the first sentence.

    —1991. Subsec. (c): Act No. 32, § 19, substituted “eight” for “seven” following “tax of” in the first sentence.

    Act No. 32, § 21 substituted “seven” for “eight” following “tax of” in the first sentence.

    —1989 (Adj. Sess.). Subsec. (c): Amended generally by Act No. 222.

    Act No. 210 substituted “seven percent” for “six percent” at the beginning of the first sentence.

    —1989. Subsec. (a): Inserted “and alcoholic beverage” following “taxable meal” and substituted “meal, or beverage” for “or meal” following “rental” in the first sentence.

    Subsec. (b): Inserted “or beverages” following “taxable meals” in the first sentence, “or beverage” following “taxable meal” in the second sentence and “beverages” following “taxable meals” in the third sentence.

    Subsec. (c): Inserted “from meals and occupancies and ten percent of the gross receipts from alcoholic beverages” preceding “exclusive”, deleted “and” preceding “taxable meals” and inserted “and alcoholic beverages” thereafter.

    —1983 (Adj. Sess.). Substituted “six” for “five” following “a tax of”.

    —1971. Subsec. (c): Increased tax to 5%.

    —1967 (Adj. Sess.). Subsec. (c): Increased tax to 4%.

    —1964. Substituted “the tax for each rental or meal” for “for the tax separately from the rental or meal charge” following “shall charge” in the first sentence of subsec. (a), added new subsec. (b) and redesignated former subsec. (b) as subsec. (c).

    —1963. Section amended generally.

    CROSS REFERENCES

    Use of private collection agency for collection of taxes, see § 3109 of this title.

    ANNOTATIONS

    Construction with other laws.

    Withholding taxes, imposed by §§ 5841 and 5842 of this title, and meals and rooms taxes, imposed by § 9241 of this title and collected pursuant to this section, assessed by the Vermont Department of Taxes against a debtor in bankruptcy are excepted from the discharge within the purview of 11 U.S.C. § 523(a) (1)(A); the fact that the claim of the Department is secured or unsecured is immaterial. In re Safka, 24 B.R. 87, 1982 Bankr. LEXIS 3185 (Bankr. D. Vt. 1982).

    Where § 9241 of this title taxed meals for which the charge was 14 cents or more, and this section provided that a tax of five percent of gross receipts received from taxable meals was levied and was to be paid to the State by operator of establishment in lieu of collection and payment to State of tax on each meal, food establishment owner properly deducted from gross receipts that portion thereof representing meals for which the charge was less than 14 cents. Quero v. State Tax Department, 131 Vt. 326, 306 A.2d 684, 1973 Vt. LEXIS 310 (1973).

    § 9243. Returns and payment.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2021. Subsec. (a): Inserted “Pursuant to section 3110 of this title,” at the beginning of the third sentence.

    —2017. Subsec. (a): In the sixth sentence, inserted “upon request,” preceding “but no operator”, and inserted “or she” preceding “has failed”.

    —2007 (Adj. Sess.). Designated existing provisions of section as subsec. (a) and added subsec. (b).

    —1997 (Adj. Sess.). Deleted the designation (a) at the start of the paragraph and added the third, fourth, and last sentences.

    —1991 (Adj. Sess.). Subsec. (b): Repealed.

    —1991. Subsec. (a): Substituted “and sign under the pains and penalties of perjury” for “swear to, sign and file with the commissioner” following “make out” in the third sentence and rewrote the fourth and fifth sentences.

    —1989 (Adj. Sess.). Subsec. (a): Act No. 124 substituted “twenty-fifth” for “thirtieth” preceding “day of the calendar” in the first sentence and “twenty-fifth (23rd of February)” for “thirtieth (28th of February)” preceding “day of the month” in the second sentence.

    Subsec. (b): Act No. 225 substituted “commissioner of banking, insurance, and securities” for “commissioner of banking and insurance” in the first sentence.

    —1975 (Sp. Sess.). Subsec. (a): Amended generally.

    —1973. Designated the existing provisions of the section as subsec. (a) and added subsec. (b).

    —1971. Added the third sentence.

    —1964. Added the sixth sentence.

    —1963. Inserted “gross receipts” before “taxes imposed,” substituted “last” for “fifteenth” in reference to calendar months in the first sentence and deleted “collected or which should have been collected pursuant to law” in reference to remittance for tax in the fifth sentence.

    1989 (Adj. Sess.) amendment. 1989, No. 124 (Adj. Sess.), § 4, provided that the amendment to subsec. (a) of this section by § 2 of that act would affect returns due for tax periods ending on and after March 31, 1990.

    ANNOTATIONS

    Generally.

    Taxpayers’ recordkeeping was significantly muddled and insufficient, and the Commissioner of Taxes found it impossible to verify the sales receipts presented and to complete an audit based on the available records. It was therefore appropriate for the Commissioner to undertake an investigation and audit to produce an assessment that made sense. Travia's Inc. v. State, 2013 VT 62, 194 Vt. 585, 86 A.3d 394, 2013 Vt. LEXIS 68 (2013).

    § 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 such 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 he or she believes such 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 9201, 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.

    HISTORY: Added 1959, No. 217 , § 9.

    History

    References in text.

    § 9201, referred to in this section, was repealed pursuant to 1991, No. 186 (Adj. Sess.), § 8(h), eff. May 7, 1992. For present provisions see § 3201 of this title.

    Revision note—

    Substituted “section 9243 of this title” for “the preceding section” in the first sentence for clarity.

    § 9245. Overpayment; refunds.

    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 his or her 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.

    HISTORY: 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.

    History

    Amendments

    —2015. Rewrote the second sentence.

    —1983. Deleted “of 12 percent” preceding “per annum” and inserted “established from time to time by the commissioner pursuant to section 3108 of this title” thereafter in the first sentence, and substituted “the return was filed” for “of the excess payment” following “date” and inserted “including any extensions of time thereto” following “due” in the second sentence.

    —1979 (Adj. Sess.). Substituted “together with interest at the rate of twelve percent per annum” for “but no such credit or refund shall be allowed after three years from the date of return was due” following “assigns” in the first sentence and added the second and third sentences.

    —1975 (Adj. Sess.). Extended refund period from “two” to “three” years.

    Effective date of amendments—

    1975 (Adj. Sess.) amendment. 1975, No. 154 (Adj. Sess.), § 16, provided, in part, that § 5, which amended this section, “shall be effective with respect to assessments made and returns filed after June 30, 1976”.

    1983 amendment. 1983, No. 59 , § 13, provided in part, that § 5, which amended this section, “shall affect any unpaid tax liability or overpayment on January 1, 1983 and thereafter.”

    § 9246. Repealed. 1963, No. 227, § 8.

    History

    Former § 9246. Former § 9246, relating to apportionment of tax where a flat charge was made, was derived from 1959, No. 217 , § 20.

    § 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.

    HISTORY: 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 shall require, 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.

    HISTORY: Added 2015, No. 134 (Adj. Sess.), § 21a, eff. July 1, 2017; amended 2019, No. 175 (Adj. Sess.), § 12, eff. Oct. 8, 2020.

    History

    Amendments

    —2019 (Adj. Sess.). Substituted “may” for “shall” in the first sentence.

    Contingent effective date. 2015, No. 134 (Adj. Sess.), § 41(4) provided that § 21a of that act, which added this section, would “take effect on the earlier of July 1, 2017, or beginning on the first day of the first quarter after the sales and use tax reporting requirements challenged in Direct Marketing Assoc. v. Brohl, 814 F.3d 1129 (10th Cir. 2016) are implemented by the State of Colorado.”

    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.

    HISTORY: 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.

    History

    Amendments

    —2019 (Adj. Sess.). Substituted “which” for “that” in the first sentence.

    —2019. Inserted “, and a booking agent shall not be required to hold a separate license for each property the rental of that it facilitates” at the end of the first sentence. su

    —2015. Added “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” in the first sentence.

    —1991 (Adj. Sess.). Inserted “or alcoholic beverages” following “meals” in the first and third sentences, and substituted “the commissioner” for “he” preceding “may require” and inserted “or she” preceding “may determine” in the second sentence.

    —1981. Section amended generally.

    —1971. Substituted “prior to commencing business” for “within thirty days of the passage of this act” following “operator” and “$ 2.00” for “$ 1.00” in the first sentence and deleted the former third sentence.

    § 9272. Suspension and revocation of licenses; appeal.

    1. 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.
    2. 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 him or her.  Such Superior judge or another Superior judge designated by the administrative judge shall hear such appeal forthwith.
    3. 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.
    4. 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.
    5. 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.

    HISTORY: 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.

    History

    Amendments

    —1997. Substituted “$500.00” for “$100.00” in the third sentence.

    —1995. Subsec. (e): Inserted “or in case of an unlicensed business” preceding “the commissioner” and substituted “operator has no license or the” for “operator’s” preceding “public that the” in the first sentence.

    —1991 (Adj. Sess.). Subsec. (e): Added.

    —1979 (Adj. Sess.). Subsec. (b): In the last sentence substituted “administrative” for “chief superior” judge.

    § 9273. Assessment of additional tax.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: 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.

    History

    Amendments

    —1989. Subsec. (b): Inserted “the later of” following “made after” and “or three years from the date the return was required to be filed” preceding “unless” in the first sentence and added the second through fifth sentences.

    —1975 (Adj. Sess.). Subsec. (b): Increased time for assessment from “two” to “three” years.

    —1971. Subsec. (b): Substituted “filed” for “due”.

    Effective date of amendments—

    1975 (Adj. Sess.) amendment. 1975, No. 154 (Adj. Sess.), § 16, provided, in part, that § 6, which amended subsec. (b) of this section, “shall be effective with respect to assessments made and returns filed after June 30, 1976”.

    ANNOTATIONS

    Generally.

    Vermont statute clearly allows for the Commissioner of Taxes to examine a return after it is filed and to make such further audits or investigation as he or she may deem necessary; further, it provides that if the Commissioner determines that there is a deficiency with respect to the payment of any tax due under the chapter, he or she shall assess the taxes and interest due the State. Where the source documents used to prepare returns suggest inaccuracies, it follows that the returns filed are not “as ... required,” and the Commissioner may proceed to make an investigation and estimation of tax, just as if no returns had been filed at all. Travia's Inc. v. State, 2013 VT 62, 194 Vt. 585, 86 A.3d 394, 2013 Vt. LEXIS 68 (2013).

    Taxpayers’ recordkeeping was significantly muddled and insufficient, and the Commissioner of Taxes found it impossible to verify the sales receipts presented and to complete an audit based on the available records. It was therefore appropriate for the Commissioner to undertake an investigation and audit to produce an assessment that made sense. Travia's Inc. v. State, 2013 VT 62, 194 Vt. 585, 86 A.3d 394, 2013 Vt. LEXIS 68 (2013).

    § 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.

    HISTORY: 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.

    History

    Revision note

    —2008. Substituted “subsection 9272(e) or section 9273” for “section 9272(e) or 9273” to conform reference to V.S.A. style.

    Amendments

    —1991 (Adj. Sess.). Inserted “9272(e) or” preceding “9273” in the first sentence and substituted “sections 9272 and” for “section” preceding “9273” in the sixth sentence.

    —1989 (Adj. Sess.). Substituted “60” for “thirty” wherever it appears.

    —1979 (Adj. Sess.). Added last sentence relating to remedies.

    —1975 (Adj. Sess.). Extended period for reconsideration from “fifteen” to “thirty” days.

    Effective date of amendments—

    1975 (Adj. Sess.) amendment. 1975, No. 154 (Adj. Sess.), § 16, provided, in part, that § 7, which amended this section, “shall be effective with respect to assessments made and returns filed after June 30, 1976”.

    § 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.

    HISTORY: 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.

    History

    Amendments

    —2019. Section amended generally. su

    —1997 (Adj. Sess.). Substituted the second sentence for former procedural provisions requiring a citation to the commissioner and a bond or recognizance from the appellant.

    —1997. Substituted “determination” for “decision” following “aggrieved by the” and “determination by” for “notice thereof from” following “thirty days after” and inserted “the Washington superior court or” preceding “the superior court” in the first sentence.

    —1991 (Adj. Sess.). Substituted “established pursuant to 32 V.S.A. § 3108 ” for “of six percent per annum” following “rate” in the fifth sentence.

    —1973 (Adj. Sess.). Changed “county court” to “superior court”.

    1997 (Adj. Sess.) amendment. 1997, No. 161 (Adj. Sess.), § 26, provided in part that the amendment to this section shall be retroactive to January 1, 1998.

    CROSS REFERENCES

    Summons in civil action, see V.R.C.P. 4.

    ANNOTATIONS

    Attorney’s fees.

    Fact that the Legislature did not expressly include a potential award for attorney’s fees in the statute regarding appeals of meals tax assessments demonstrates that the Legislature did not intend to waive sovereign immunity in this section, and thus a taxpayer was not entitled to attorney’s fees under the statute. Depot Square Pizzeria, LLC v. Dep't of Taxes, 2017 VT 29, 204 Vt. 536, 169 A.3d 204, 2017 Vt. LEXIS 59 (2017).

    § 9276. Hearings.

    1. 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.
    2. 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.
    3. 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.
    4. [Repealed.]

    HISTORY: Added 1959, No. 217 , § 14; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1983, No. 230 (Adj. Sess.) § 17(8).

    History

    Amendments

    —1983 (Adj. Sess.). Subsec. (d): Repealed.

    —1973 (Adj. Sess.). Changed “county court” to “superior court” in subsecs. (b) and (d).

    CROSS REFERENCES

    Enforcement of subpoenas issued by administrative agencies generally, see 3 V.S.A. § 809a .

    Modification of subpoenas or discovery orders issued by administrative agencies, see 3 V.S.A. § 809b .

    Witness fees, see § 1551 of this title.

    § 9277. Repealed. 1975, No. 154 (Adj. Sess.), § 15.

    History

    Former § 9277. Former § 9277, relating to interest on unpaid taxes, was derived from 1959, No. 217 , § 16. The subject matter is now covered by §§ 3202 and 3203 of this title.

    § 9278. Repealed. 1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.

    History

    Former § 9278. Former § 9278, relating to late filing fees, penalties, and interest for meals and rooms tax, was derived from 1959, No. 217 , § 17; and amended by 1963, No. 41 , § 1; 1975, No. 154 (Adj. Sess.), § 8; 1979, No. 105 (Adj. Sess.), § 34; 1981, No. 191 (Adj. Sess.), § 7; 1991, No. 67 , § 8, and 1991, No. 186 (Adj. Sess.), § 22.

    See also §§ 3202 and 3203 of this title, relating to interest and penalties.

    § 9279. Violations.

    1. 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.
    2. 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.
    3. 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.
    4. Any operator who knowingly violates the provisions of this chapter or regulations promulgated 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, 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 or 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.
    5. 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 thereof during which he or she shall be so engaged.

    HISTORY: Added 1959, No. 217 , § 18; amended 1963, No. 227 , § 5; 1987, No. 48 , § 10; 1991, No. 186 (Adj. Sess.), § 23, eff. May 7, 1992.

    History

    Amendments

    —1991 (Adj. Sess.). Subsec. (d): Inserted “or regulations promulgated by the commissioner under this chapter” preceding “relative” and “alcoholic beverages” preceding “and rooms” and deleted “and the tax on the gross receipts from the sale of taxable meals and rental charges and regulations promulgated by the commissioner under this chapter relative to such taxes” thereafter.

    —1987. Section amended generally.

    —1963. Added “and the tax on the gross receipts from the sale of taxable meals and rental charges” after “tax on meals and rooms”, and substituted “license” for “certificate” after “valid registration”.

    § 9280. Taxes as personal debt to State; action to collect taxes; limitations.

    1. 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.
    2. 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.
    3. 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.
    4. 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.

    HISTORY: 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.

    History

    Amendments

    —2017. Subsec. (d): Inserted “business” following “within five” in the second sentence.

    —2003 (Adj. Sess.). Added “, action to collect taxes; limitations” following “state” in the section heading, added new subsec. (c), redesignated former subsec. (c) as subsec. (d) and made gender-neutral changes throughout the subsection.

    —1999. Subsec. (a): Inserted “together with such interest and penalty as has accrued under the provisions of section 3202 of this title” following “amount of such tax”.

    —1997. Subsecs. (a) and (b): Amended generally.

    —1991 (Adj. Sess.). Subsec. (b): Substituted “six” for “three” preceding “years” in the first and third sentences.

    —1975 (Adj. Sess.). Subsec. (c): Added.

    —1963. Section amended generally.

    ANNOTATIONS

    Construction.

    Statutory duty for payment of withholding, sales and use, and rooms and meals taxes is imposed personally on corporate officer who, within corporate structure, has duty to collect and remit the taxes; in other words, officer’s corporate duty becomes a statutory duty, and personal liability attaches for nonperformance. Rock v. Department of Taxes, 170 Vt. 1, 742 A.2d 1211, 1999 Vt. LEXIS 247 (1999).

    Department of Taxes did not employ wrong legal standard in holding corporate officer personally liable for corporation’s outstanding withholding, sales and use, and rooms and meals taxes, since Department properly viewed officer’s actual authority and control over corporation’s financial affairs as evidence of his duty to remit taxes to State. Rock v. Department of Taxes, 170 Vt. 1, 742 A.2d 1211, 1999 Vt. LEXIS 247 (1999).

    § 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.

    HISTORY: Added 1959, No. 217 , § 22; amended 1963, No. 227 , § 7.

    History

    Amendments

    —1963. Substituted “pay” for “collect” after “required to”.

    ANNOTATIONS

    Cited.

    Cited in In re Safka, 25 B.R. 711, 1982 Bankr. LEXIS 5181 (Bankr. D. Vt. 1982).

    § 9282. Short-term rental operators.

    1. A short-term rental operator shall post the corresponding meals and rooms tax account number on any advertisement for the short-term rental.
    2. 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. The operator of a unit registered prior to July 1, 2018 shall receive an information packet from the Department prior to July 1, 2019.

    HISTORY: Added 2018, No. 10 (Sp. Sess.), § 2.

    Chapter 227. Peddlers

    §§ 9401-9412. Repealed. 1991, No. 167 (Adj. Sess.), § 66(5).

    History

    Former §§ 9401-9412. Former § 9401, relating to definition of “peddler,” was derived from V.S. 1947, § 1179; 1937, No. 33 , § 1; P.L. § 1154; 1931, No. 12 , § 1; 1929, No. 27 , §§ 1, 2; 1925, No. 31 , § 1; G.L. § 1159; 1917, No. 53 , § 1; 1915, No. 62 , 1912, No. 61 , § 1; 1910, No. 58 , § 1; 1908, No. 33 , § 1; P.S. § 902; 1904, No. 145 , § 1; 1902, No. 119 , § 1; 1900, No. 94 , § 1; V.S. § 4731; 1882, No. 76 , § 2; R.L. § 3952; G.S. 81, § 2; 1857, No. 19 , § 3; 1846, No. 26 , § 1; R.S. 74, § 1; 1837, No. 17 ; 1833, No. 12 , § 1; 1821, p. 87, 1815, p. 162, and 1806, p. 181.

    Former § 9402, relating to exemptions, was derived from 1953, No. 222 , § 1; V.S. 1947, § 1180; 1937, No. 33 , § 2; P.L. § 1155; 1931, No. 12 , § 2; 1929, No. 27 , § 3, and amended by 1961, No. 217 , § 6, and 1989, No. 256 (Adj. Sess.), § 10(a).

    Former § 9403, relating to exempt status, was derived from 1953, No. 222 , § 1; V.S. 1947, § 1180; 1937, No. 33 , § 2; P.L. § 1155; 1931, No. 12 , § 2; 1929, No. 27 , § 3, and amended by 1961, No. 217 , § 6.

    Former § 9404, relating to license application, was derived from V.S. 1947, § 1184; P.L. § 1159; G.L. § 1163; 1917, No. 53 , § 4, and amended by 1961, No. 217 , § 6.

    Former § 9405, relating to license tax rates, was derived from V.S. 1947, § 1181; 1925, No. 31 , § 2; 1921, No. 43 , § 1; G.L. § 1160; 1917, No. 53 , § 2; 1912, No. 61 , § 2; 1910, No. 58 , § 2; P.S. §§ 903, 904; 1904, No. 145 , §§ 3, 4, 5; V.S. §§ 4735, 4736; 1886, No. 92 ; R.L. §§ 3955, 3956; G.S. 81, §§ 8, 9; 1847, No. 30 ; 1846, No. 26 , §§ 8, 9; R.S. §§ 4, 5; 1833, No. 12 , § 1; 1822, p. 21; 1821, p. 85, and 1806, p. 180.

    Former § 9406, relating to issuance and form of license, was derived from V.S. 1947, § 1183; P.L. § 1158; 1921, No. 43 ; G.L. § 1162; 1917, No. 53 , § 3; P.L. § 905; 1904, No. 145 , § 5; V.S. § 4737; R.L. § 3957; G.S. 81, § 4; 1846, No. 26 , § 3; R.S. 74, § 3; 1821, p. 86; 1806, p. 180, and amended by 1961, No. 217 , § 6.

    Former § 9407, relating to refusal and revocation of license, was derived from V.S. 1947, § 1185; P.L. § 1160; 1931, No. 12 , § 3, and amended by 1961, No. 217 , § 6.

    Former § 9408, relating to term of license, was derived from V.S. 1947, § 1186; P.L. § 1161; 1919, No. 50 , § 1; G.L. § 1164; 1917, No. 53 , § 5; P.S. § 906; 1904, No. 145 , § 5; V.S. § 4741; R.L. § 3961; G.S. 81, § 10; 1846, No. 26 , § 10; R.S. 74, § 8; 1832, No. 16 ; 1821, p. 86 and 1806, p. 181.

    Former § 9409, relating to extension of license to employee, was derived from V.S. 1947, § 1182; P.L. § 1157; G.L. § 1161 and 1917, No. 54 .

    Former § 9410, relating to recording of license and restriction of local licenses, was derived from V.S. 1947, § 1187; P.L. § 1162; G.L. § 1165; 1917, No. 53 , § 6; P.S. § 907; 1904, No. 145 , § 5; V.S. § 4738; R.L. § 3958; G.S. 81, § 5; 1846, No. 26 , § 4; R.S. 74, § 6; 1821, p. 86; 1806, p. 180, and amended by 1961, No. 217 , § 6.

    Former § 9411, relating to license number plates and badges, was derived from V.S. 1947, § 1188; P.L. § 1163; 1921, No. 43 , § 3; G.L. § 1166; 1917, No. 53 , § 7, and amended by 1961, No. 217 , § 6.

    Former § 9412, relating to penalties, was derived from 1953, No. 222 , § 2; V.S. 1947, §§ 1189, 1190; 1937, No. 33 , §§ 3; P.L. §§ 1164, 1165; 1931, No. 12 , § 4; 1921, No. 43 , § 4; G.L. §§ 1167, 1168; 1917, No. 53 , §§ 8, 9; P.S. §§ 904, 910, 911; 1904, No. 145 , §§ 2, 4, 5; V.S. §§ 4732, 4736, 4742; 1888, No. 137 , § 1; R.L. §§ 3951, 3956, 3962; G.S. 81, §§ 3, 9, 11; 1857, No. 19 , §§ 2; 1846, No. 26 , §§ 2, 9, 11; R.S. 74, §§ 2, 5, 10; 1821, p. 87; 1815, p. 162, and 1806, pp. 181, 182.

    Chapter 229. Private Detectives

    §§ 9501-9514. Repealed. 1981, No. 98, § 2.

    History

    Former §§ 9501-9514. Former § 9501, relating to issuance and form of license, was derived from V.S. 1947, § 1194 and 1935, No. 38 , § 1, amended by 1961, No. 127 , § 7, and repealed by 1969, No. 282 (Adj. Sess.), § 14.

    Former § 9502, relating to license fee and bond, was derived from V.S. 1947, § 1195 and 1935, No. 38 , § 2, amended by 1961, No. 127 , § 7, and repealed by 1969, No. 282 (Adj. Sess.), § 14. Another § 9502, relating to the State board of private detective licensing, was added by 1971, No. 183 (Adj. Sess.), § 2.

    Former § 9503, relating to exemptions from provisions of chapter, was derived from 1949, No. 31 ; V.S. 1947, § 1197; 1935, No. 38 , § 4, and repealed by 1969, No. 282 (Adj. Sess.), § 14. Another § 9503, relating to compensation of members, clerical assistance, and inspection staff, was added by 1971, No. 183 (Adj. Sess.), § 3.

    Former § 9504, relating to failure to obtain license, was derived from V.S. 1947, § 1196 and 1935, No. 38 , § 3, and repealed by 1969, No. 282 (Adj. Sess.), § 14. Another § 9504, relating to powers of board generally, was added by 1971, No. 183 (Adj. Sess.), § 14.

    Former § 9505, relating to definitions, was derived from 1969, No. 282 (Adj. Sess.), § 5, and amended by 1971, No. 14 , § 20, No. 183 (Adj. Sess.), § 1.

    Former § 9506, relating to license requirement, was derived from 1969, No. 282 (Adj. Sess.), § 6, and amended by 1971, No. 183 (Adj. Sess.), § 9 and No. 184 (Adj. Sess.), § 25.

    Former § 9507, relating to applications, was derived from 1969, No. 282 (Adj. Sess.), § 7, and amended by 1971, No. 183 (Adj. Sess.), § 5.

    Former § 9508, relating to agencies, was derived from 1969, No. 282 (Adj. Sess.), § 8, and amended by 1971, No. 183 (Adj. Sess.), § 9.

    Former § 9509, relating to surety bonds, was derived from 1969, No. 282 (Adj. Sess.), § 9.

    Former § 9510, relating to renewal of licenses, was derived from 1969, No. 282 (Adj. Sess.), § 10.

    Former § 9511, relating to persons who presently hold licenses, was derived from 1969, No. 282 (Adj. Sess.), § 11, and amended by 1971, No. 183 (Adj. Sess.), § 6.

    Former § 9512, relating to revocation of licenses, was derived from 1969, No. 282 (Adj. Sess.), § 12, and amended by 1971, No. 183 (Adj. Sess.), § 7.

    Former § 9513, relating to penalties, was derived from 1969, No. 282 (Adj. Sess.), § 13, and amended by 1971, No. 183 (Adj. Sess.), § 8.

    Former § 9514, relating to receipts, was derived from 1975, No. 118 , § 65.

    The subject matter of former §§ 9501-9514 is now covered by 26 V.S.A. chapter 59.

    Chapter 230. Tax on Transferors of Nursing Homes

    § 9530. Definitions.

    The following definitions shall apply throughout 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:
      1. the sale of stock or shares in a publicly traded corporation; or
      2. 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
      3. a change of ownership between related parties other than family members; or
      4. a change of ownership between family members for less than full and reasonable consideration; or
      5. such other transactions that the Commissioner may determine not to constitute a true change of ownership.
      1. “Family member” means spouses, parents, grandparents, children, grandchildren, siblings, aunts, uncles, nieces, nephews, or the spouse of such person. (8) (A) “Family member” means spouses, parents, grandparents, children, grandchildren, siblings, aunts, uncles, nieces, nephews, or the spouse of such person.
      2. “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.
    8. “Transferor” means the owner of a nursing home who by the transfer has been divested of an ownership interest in the home.

    HISTORY: 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.

    History

    Amendments

    —2009 (Adj. Sess.) Subdiv. (1): Substituted “commissioner” for “director” and “department” for “office”.

    Subdiv. (2): Deleted.

    —2005 (Adj. Sess.). Subdiv. (1): Rewrote the subdivision.

    —1999 (Adj. Sess.). Subdiv. (1): Substituted “commissioner of prevention, assistance, transition, and health access” for “commissioner of social welfare”.

    —1995 (Adj. Sess.) Section amended generally.

    1995 (Adj. Sess.) amendment. 1995, No. 186 (Adj. Sess.), § 37, eff. May 22, 1996, provided that the amendment to this section by § 9 of that act shall apply to transfers occurring on or after July 1, 1995.

    § 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.

    HISTORY: Added 1995, No. 14 , § 5, eff. April 12, 1995; amended 1995, No. 186 (Adj. Sess.), § 10, eff. May 22, 1996.

    History

    Amendments

    —1995 (Adj. Sess.) Rewrote the second sentence.

    1995 (Adj. Sess.) amendment. 1995, No. 186 (Adj. Sess.), § 37, eff. May 22, 1996, provided that the amendment to this section by § 10 of that act shall apply to transfers occurring on or after July 1, 1995.

    § 9532. Repealed. 1995, No. 186 (Adj. Sess.), § 11, eff. May 22, 1996.

    History

    Former § 9532. Former § 9532, relating to exemptions, was derived from 1995, No. 14 , § 5.

    § 9533. Tax liability, payment, and acknowledgement.

    1. 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.
    2. 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.
    3. 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.
    4. 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 .
    5. Upon the receipt of the full amount of the tax, the Commissioner shall deposit receipts from the transferor tax into the General Fund.

    HISTORY: 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.

    History

    Revision note

    —2021. In subsec. (d), substituted “section 3102 of this title” for “ 32 V.S.A. § 3102 ” to conform reference to V.S.A. style.

    Amendments

    —2019. Subsec. (e): Substituted “into” for “in” following “transferor tax”, and “General Fund” for “Health Care Resources Fund established pursuant to 33 V.S.A. § 1901d ”.

    —2009 (Adj. Sess.) Subsec. (b): Substituted “department” for “office”.

    Subsec. (e): Amended generally.

    —2005 (Adj. Sess.). Subsec. (b): Substituted “office of Vermont” for “department of prevention, assistance, transition, and” preceding “health access”.

    Subsec. (e): Substituted “director” for “commissioner”.

    —1999 (Adj. Sess.). Subsec. (b): Substituted “department of prevention, assistance, transition, and health access” for “department of social welfare”.

    —1995 (Adj. Sess.) Subsec. (c): Substituted “changes in nursing home ownership that are not transfers as defined in subdivision 9530(7)” for “transferors exempted from the tax by section 9532” preceding “of this chapter”.

    Retroactive effective date of amendments. 2019, No. 6 , § 105(a), provides: “Notwithstanding 1 V.S.A. § 214 or any other act or provision, Secs. 64-72 (State Health Care Resources Fund), 74 ( 32 V.S.A. § 10503 ), 75 ( 33 V.S.A. § 1951 ), and 76 ( 33 V.S.A. § 1956 ) and Sec. 85 amending 16 V.S.A. § 2857 shall take effect on passage and apply retroactively to July 1, 2018.”

    1995 (Adj. Sess.) amendment. 1995, No. 186 (Adj. Sess.), § 37 provided that the amendment to this section by § 12 of that act shall apply to transfers occurring on or after July 1, 1995.

    § 9534. Implementing rules.

    The Secretary may adopt rules necessary to implement the provisions of this chapter.

    HISTORY: Added 1995, No. 14 , § 5, eff. April 12, 1995.

    § 9535. Review and appeals.

    1. 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.
    2. 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.

    HISTORY: Added 1995, No. 14 , § 5, eff. April 12, 1995; amended 2005, No. 174 (Adj. Sess.), § 67; 2009, No. 156 (Adj. Sess.), § I.34.

    History

    Amendments

    —2009 (Adj. Sess.) Substituted “commissioner” for “director” and “commissioner’s” for “director’s” wherever it appeared throughout the section.

    —2005 (Adj. Sess.). Subsec. (a): Substituted “10” for “ten” preceding “days” and “director” for “commissioner” in three places.

    Subsec. (b): Substituted “director’s” for “commissioner’s”.

    Chapter 231. Property Transfer Tax

    CROSS REFERENCES

    Taxation on gains from sale or exchange of land, see chapter 236 of this title.

    § 9601. Definitions.

    The following definitions shall apply throughout 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:
      1. 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, perpetual leasehold, and perpetual easement; and
      2. those interests in property enduring for a fixed period:
        1. equal to or exceeding 50 years;
        2. 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;
        3. 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. “Value” means:
      1. 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.
      2. In the case of a gift, or a transfer for nominal or no consideration, the fair market value of the property transferred.
      3. 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.
      4. “Value” shall not include the fair market value of private alternative energy sources as defined in section 3845 of this title.
    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 18 V.S.A. § 104 .
    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:
      1. 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.
      2. 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.
      3. 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 regulation to determine when persons are acting in concert. In adopting a regulation for this purpose, the Commissioner shall consider the following:
        1. 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.
        2. 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.

    HISTORY: 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.

    History

    References in text.

    18 V.S.A. § 104 , referred to in subdiv. (9), no longer governs appointment of the Commissioner of Health. The subject matter is now covered by 3 V.S.A. § 3051 .

    Revision note

    —2021. In subdiv. (3)(A), deleted “without limitation,” following “including” in accordance with 2013, No. 5 , § 4.

    In subdiv. (11), substituted “section 10002a of this title” for “32 V. S. A. § 10002a” to conform to V.S.A. style.

    —2013. In subdiv. (1), deleted “, but not limited to,” following “including” in accordance with 2013, No. 5 , § 4.

    Amendments

    —2019. Subdiv. (2): Added “, partnership, limited liability company, or other legal entity”.

    Subdiv. (5): Inserted “, transfer or acquisition of a direct or indirect controlling interest in any person with title to property,” following “of court”.

    Subdiv. (6): Amended generally.

    Subdiv. (12): Added.

    —1989 (Adj. Sess.). Subdiv. (1): Inserted “memorandum of deed, memorandum of lease” following “instrument” in the first sentence and added the second sentence.

    Subdiv. (3): Substituted “50” for “25” wherever it appears in subdiv. (B).

    —1989. Subdiv. (3)(B): Amended generally.

    —1987 (Adj. Sess.). Subdiv. (11): Added.

    —1981. Subdiv. (5): Deleted last sentence.

    —1979 (Adj. Sess.). Subdiv. (7): Included within definition of commissioner “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 and described in this chapter”.

    —1975 (Adj. Sess.). Subdiv. (5): Amended generally by Act No. 225.

    Subdiv. (6): Added the second sentence.

    —1971 (Adj. Sess.). Subdiv. (10): Added.

    —1971. Subdiv. (5): Added “will, trust, decree of court” following “conveyance”.

    —1969 (Adj. Sess.). Subdivs. (8), (9): Added.

    1989 (Adj. Sess.) amendment. 1989, No. 222 (Adj. Sess.), § 30, provided:

    “Notwithstanding Sec. 28 of Act No. 119 of the Acts of 1989 [which provided that the amendment to subdiv. (3) of this section was to take effect on June 22, 1989], the amendment of 32 V.S.A. § 9601(3) by Sec. 20 of Act No. 119 of the Acts of 1989 shall not apply to any project or transaction which either:

    “(1) had a completed Act 250 application filed with a local environmental commission or the environmental board on or before June 22, 1989, or

    “(2) was not subject to Act 250 and was under review by a municipal planning commission on or before June 22, 1989.”

    § 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 one and one-quarter 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 five-tenths of one percent of the first $100,000.00 in value of the property transferred and at the rate of one and one-quarter percent of the value of the property transferred in excess of $100,000.00; except that no tax shall be imposed on the first $110,000.00 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 one and one-quarter percent shall be imposed on the value of that property in excess of $110,000.00.
    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 five-tenths of one percent of the first $100,000.00 in value of the residence transferred and at the rate of one and one-quarter percent of the value of the residence transferred in excess of $100,000.00; 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.

    HISTORY: 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.

    History

    Amendments

    —2019. Added “, or a transfer or acquisition of a controlling interest in any person with title to property in this State” at the end of the first sentence of the introductory language.

    —2011. Subdiv. (2): Repealed.

    —2007 (Adj. Sess.). Substituted “one-quarter” for “one quarter” in the introductory paragraph and subdiv. (1) and added the exception at the end of subdiv. (1).

    —1999. Subdiv. (1): Substituted “the purchaser obtains a purchase money mortgage that the Vermont housing finance agency has committed to make or purchase” for “in connection with the transfer, a guaranty fee is paid to the Vermont home mortgage guarantee program in accordance with section 387 of Title 10” at the end of the sentence.

    —1997. Subdiv. (1): Added “provided that no tax shall be imposed on the first $100,000.00 in value of the property if, in connection with the transfer, a guaranty fee is paid to the Vermont home mortgage guarantee program in accordance with section 387 of Title 10”.

    Subdiv. (3): Added.

    —1993. Subdiv. (2): Deleted “in excess of 25 acres” preceding “actively” in the second sentence and substituted “one and one-quarter” for “one” preceding “percent” in the third sentence.

    —1987 (Adj. Sess.) Section amended generally.

    —1969. Increased tax from “one-tenth” to “five-tenths”.

    Effective date of amendments—

    1999. 1999, No. 62 , § 277(c), eff. June 2, 1999, provided: “Sec. 272 shall be effective on passage and the provisions in Sec. 272 providing a property transfer tax exemption shall be repealed on July 1, 2002.”

    Effective date of amendments—

    2001 (Adj. Sess.) 2001 (Adj. Sess.), No. 143, § 62, eff. July 1, 2002, amended 1999, No. 62 , § 277(c) to provide that the provisions in 1999, No. 62 , § 272 shall be repealed on July 1, 2006.

    1997 amendment. 1997, No. 50 , § 48(f), eff. June 26, 1997, provided that § 43 of that act, which added subdiv. (3), shall apply to transfers on and after July 1, 1993.

    2007 (Adj. Sess.) amendment. 2007, No. 176 (Adj. Sess.), § 14a provides: “Sec. 14 [which amended this section] (Low Income Home Ownership Program) of this act, amending 32 V.S.A. § 9602 , shall apply to transfers on or after July 1, 2008.”

    Extension of applicability of amendment. 2001 (Adj. Sess.), No. 143, § 62, eff. July 1, 2002, amended 1999, No. 62 , § 277(c) to provide that the provisions in 1999, No. 62 , § 272 shall be repealed on July 1, 2006.

    Prospective repeal of 1997 amendment. 1997, No. 40 , § 49(g), eff. June 26, 1997, provides that the amendment to subdiv. (1) of this section, by § 6 of that act is repealed on July 1, 2000.

    ANNOTATIONS

    Cited.

    Cited in Murphy v. Department of Taxes, 173 Vt. 571, 795 A.2d 1131, 2001 Vt. LEXIS 426 (2001) (mem.).

    § 9602a. Section 9602a effective until July 1, 2027; see also section 9602a effective July 1, 2027 and repealed effective July 1, 2039 set out below. Clean water surcharge.

    There shall be a surcharge of 0.2 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 $100,000.00 in value of property to be used for the principal residence of the transferee or the first $200,000.00 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 .

    HISTORY: Added 2015, No. 64 , § 38, eff. June 16, 2015; amended 2017, No. 85 , § I.9; 2017, No. 85 , § I.10, eff. July 1, 2027; repealed on July 1, 2039 by 2017, No. 85, § I.11(a)(5).

    History

    Amendments

    —2017. Added “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 ” in the last sentence.

    Prospective repeal of § 9602a. 2017, No. 85 , § I.11(a)(5) provides that this section shall be repealed on July 1, 2039.

    Repeal of sunset. 2015, No. 64 , § 39, which provided for the sunset of amendments of the clean water surcharge, effective July 1, 2018, was repealed by 2017, No. 85 , § I.8.

    § 9602a. Section 9602a effective July 1, 2027 and repealed effective July 1, 2039; see also section 9602a effective until July 1, 2027 set out above. Clean water surcharge.

    There shall be a surcharge of 0.04 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 $100,000.00 in value of property to be used for the principal residence of the transferee or the first $200,000.00 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 Vermont Housing and Conservation Trust Fund created in 10 V.S.A. § 312 .

    HISTORY: Added 2015, No. 64 , § 38, eff. June 16, 2015; amended 2017, No. 85 , § I.9; 2017, No. 85 , § I.10, eff. July 1, 2027; repealed on July 1, 2039 by 2017, No. 85, § I.11(a)(5).

    History

    Amendments

    —2017. Act No. 85, § I.9, effective July 1, 2017, added “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 ” in the last sentence.

    Act No. 85, § I.10, effective July 1, 2027, substituted “0.04 percent” for “0.2 percent” in the first sentence, and deleted “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” preceding “in the Vermont Housing” in the last sentence.

    Prospective repeal of § 9602a. 2017, No. 85 , § I.11(a)(5) provides that this section shall be repealed on July 1, 2039.

    Repeal of sunset. 2015, No. 64 , § 39, which provided for the sunset of amendments of the clean water surcharge, effective July 1, 2018, was repealed by 2017, No. 85 , § I.8.

    § 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 above named; and transfers from such a trust conveying or releasing the property free of trust as between such 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.
      1. 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” shall mean land without structures thereon. (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” shall mean land without structures thereon.
      2. 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.
    14. 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.
    15. 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.
    16. Transfers of utility line easements to a public utility or a municipality for a consideration of $500.00 or less.
    17. Transfers between the obligor and the primary obligee arising out of a foreclosure proceeding or conveyance in lieu of foreclosure.
    18. 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.
    19. 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:
      1. to acquire property in order to preserve housing for low-income families;
      2. to operate a statewide public television station and provided that the property transferred will be held by the transferee for this purpose; or
      3. 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.
    20. 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.
    21. 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.
    22. Transfers of leasehold or fee interests made to low income individuals by organizations qualifying under 26 U.S.C. § 501(c) (3) and having as its primary purpose the provision of housing to low-income individuals, or from a wholly owned subsidiary of such an organization, when such a transfer is made concurrently with the transfer of an improvement located on the leasehold or fee property, or is a renewal of such a lease where the purpose of the lease is to provide affordable housing or to ensure the continued affordability of such housing, or both.
    23. 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.
    24. 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.
    25. 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.

    HISTORY: 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.

    History

    References in text.

    The Cooperative Housing Ownership Act, referred to in subdiv. (21), is codified as 11 V.S.A. chapter 14.

    The Internal Revenue Code, referred to in subdivs. (24) and (25), is codified as 26 U.S.C. § 1 et seq.

    Revision note

    —2021. In subdiv. (1), substituted “January 1, 1968” for “the effective date of this act” for purposes of clarity.

    Revision note—. Subdiv. (17), as added by 1981, No. 247 (Adj. Sess.), was redesignated as subdiv. (19) to avoid conflict with subdivs. (17) and (18) as added by 1981, Nos. 38 and 56.

    Subdiv. (21), as added by 1987, No. 200 (Adj. Sess.), § 51, eff. July 1, 1988, was redesignated as subdiv. (22) to avoid conflict with subdiv. (21) as added by 1987, No. 254 (Adj. Sess.), § 5, eff. June 16, 1988.

    Amendments

    —2019. Subdiv. (6): Added.

    Subdiv. (26): Added.

    —2011 (Adj. Sess.). Subdiv. (23): Inserted “or fee” following “leasehold” in two places, and “and having as its primary purpose the provision of housing to low income individuals” following “Code of 1986”.

    —1997. Subdiv. (5): Inserted “or child’s spouse” following “parent and child” and “or grandchild’s spouse” following “and grandchild”.

    Subdivs. (24) and (25): Added.

    —1995 (Adj. Sess.) Subdiv. (14): Designated the existing provisions of the subdivision as subdiv. (A), substituted “which prior to the transfer have been determined to” for “that” preceding “meet” in the first sentence of that subdivision, and added subdiv. (B).

    —1991 (Adj. Sess.). Subdiv. (20)(C): Added.

    —1991. Subdiv. (2): Substituted “to” for “acquired by” following “property”.

    Subdiv. (4): Inserted “or” following “confirm” and deleted “modify, or supplement” following “correct”.

    Subdiv. (6): Repealed.

    Subdiv. (9): Inserted “pursuant to which transfer no gain or loss is recognized under the Internal Revenue Code, and” preceding “bona fide” and substituted “avoid” for “evade” preceding “the property”.

    Subdiv. (11): Substituted “except where the commissioner finds that a major purpose of such transaction is to avoid the property transfer tax” for “of 1954” following “Code”.

    Subdiv. (12): Deleted “development corporation or” following “made by, a” and “they are” preceding “defined” and substituted “212(10)” for “202(4) and section 222(4)”.

    Subdiv. (13): Substituted “chapter 12” for “chapters 11 or 11A”.

    Subdiv. (15): Substituted “except where the commissioner finds that a major purpose of such transaction is to avoid the property transfer tax” for “of 1954” following “Code”.

    Subdiv. (16): Inserted “pursuant to which transfer no gain or loss is recognized under the Internal Revenue Code” following “partnership” and substituted “avoid” for “evade” preceding “the property”.

    Subdiv. (18): Deleted “and any subsequent transfers to the junior lienholders being merged into the transfer from the obligor to the primary obligee” following “foreclosure”.

    —1989 (Adj. Sess.). Subdiv. (19): Deleted “pursuant to subchapter 6 of chapter 11 of Title 15” following “marriage”.

    Subdiv. (20): Amended generally.

    Subdiv. (23): Added.

    —1987 (Adj. Sess.). Subdiv. (20): Added by Act No. 129.

    Subdiv. (21): Added by Act Nos. 200 and 254.

    —1987. Subdiv. (14): Amended generally.

    —1981 (Adj. Sess.). Added subdiv. (17).

    —1981. Subdiv. (17): Added by Act No. 38.

    Subdiv. (18): Added by Act No. 56.

    —1975 (Adj. Sess.). Subdiv. (3): Inserted “directly to the obligee” following “transfers”.

    Subdiv. (7): Amended generally.

    Subdiv. (9): Inserted “complete” preceding “dissolution thereof”.

    Subdiv. (11): Amended generally.

    Subdivs. (14)-(16): Added.

    —1971. Subdiv. (5): Act No. 68 added provisions relating to transfers by trust, decree of court.

    Subdiv. (9): Act No. 73 added provisions relating to dissolution.

    —1969. Subdiv. (11): Amended generally.

    Subdivs. (12), (13): Added.

    1987, No. 129 (Adj. Sess.). 1987, No. 129 (Adj. Sess.), § 2, 1988, provided that the amendment to this section by § 1 of that act would apply to transfers made on or after July 1, 1987.

    1989 (Adj. Sess.) amendment. 1989 No. 222 (Adj. Sess.), § 44(5), provided that the amendment to subdiv. (20) of this section by § 40 of that act would apply retroactively to Dec. 31, 1989.

    1991 (Adj. Sess.) amendment. 1991, No. 186 (Adj. Sess.), § 37, eff. May 7, 1992, provided that the amendment to this section by § 25 of that act shall affect transfers of property on and after December 1, 1990.

    1995 (Adj. Sess.) amendment. 1995, No. 131 (Adj. Sess.), § 2, provided that the amendment to this section by § 1 of that act shall apply to transfers on and after July 1, 1996.

    2009 statutory revision. 2009, No. 3 , § 12a provides: “The staff of the legislative council, in its statutory revision capacity, is authorized and directed to make such amendments to the Vermont Statutes Annotated as are necessary to effect the purpose of this act, including, where applicable, substituting the words ‘civil marriage’ for the word ‘marriage.’ Such changes shall be made when new legislation is proposed, or there is a republication of a volume of the Vermont Statutes Annotated.”

    ANNOTATIONS

    Burden of proof.

    A taxpayer has the right, and the burden, of establishing that an apparently taxable transfer of property is eligible for exemption, and once established, the exception should apply. Wetherbee v. State, 132 Vt. 165, 315 A.2d 251, 1974 Vt. LEXIS 317 (1974).

    Construction.

    Basic purpose of the federal tax statutes referenced in the Vermont statute dealing with exemptions from the property transfer tax is to provide for the nonrecognition of gain or loss where the property transfer is a mere change in form; thus, contributions to a partnership or limited liability company as the start-up capital are, generally, nonrecognition events. The same principle clearly informs the Vermont statute, which provides a State sales tax exemption for transfers of property to corporations, partnerships, and limited liability companies where no gain or loss is recognized under the Internal Revenue Code. Polly's Props., LLC v. Dep't of Taxes, 2010 VT 41, 188 Vt. 157, 998 A.2d 1047, 2010 Vt. LEXIS 39 (2010).

    While a limited liability company may become a “legal” entity when its articles of organization are filed, it is apparent that for tax-relief purposes the “formative” event is the initial transfer of capital, or capitalization of the company, which typically occurs at some point in time after the filing of the articles of organization, the execution of an operating agreement, and other steps in the process of getting a limited liability company up and running. Indeed, federal tax regulations in this area routinely conceptualize the “formation” of a partnership or limited liability company as a process, not a single event. Polly's Props., LLC v. Dep't of Taxes, 2010 VT 41, 188 Vt. 157, 998 A.2d 1047, 2010 Vt. LEXIS 39 (2010).

    Affording transfer-tax relief for the initial capitalization of a limited liability company regardless of its temporal proximity to the filing of the articles of organization appears to most closely effectuate the statutory purpose of the statute dealing with exemptions from the property transfer tax. Furthermore, the Department of Taxes’ understandable desire for a date certain or “bright line” beyond which property transfers would be ineligible for tax relief cannot be allowed to elevate administrative convenience over legislative intent. Polly's Props., LLC v. Dep't of Taxes, 2010 VT 41, 188 Vt. 157, 998 A.2d 1047, 2010 Vt. LEXIS 39 (2010).

    By only looking to the labels on transactions, the State Department of Taxes takes too mechanical a view of this section. Wetherbee v. State, 132 Vt. 165, 315 A.2d 251, 1974 Vt. LEXIS 317 (1974).

    Federal instrumentalities.

    Where production credit association claimed that it was an instrumentality of the United States and therefore, pursuant to subdivision (2) of this section, exempt from the Vermont property transfer tax, but regulation promulgated by Department of Taxes purporting to clarify the scope of the exemption for federal instrumentalities provided that the exemption was intended to exempt only those agencies that could not be subjected to a state tax under federal law and the Constitution, since the parties stipulated that no federal law exempted production credit associations from State property transfer taxes, the interpretation of the exemption as set forth in the regulation was reasonably related to the purpose of the property transfer tax, which was to raise revenue, and the association failed to refute the prima facie showing that the regulation was valid, assessment of the tax against the association would be affirmed. Farmers Production Credit Association v. State, 144 Vt. 581, 481 A.2d 18, 1984 Vt. LEXIS 517 (1984).

    Security transactions.

    It is the intention of the Legislature that security transactions be exempt from tax on transfer of title to property. Wetherbee v. State, 132 Vt. 165, 315 A.2d 251, 1974 Vt. LEXIS 317 (1974).

    Where plaintiffs transferred real property to their business corporation by a transaction involving a deed, without consideration, from plaintiff to corporation, a mortgage deed from corporation to bank, and a deed, without consideration, from corporation back to plaintiffs subject to mortgage, transaction occurring solely to satisfy bank’s conditions for security for business improvements loan, and State Department of Taxes thereafter assessed a transfer tax on each of the two transfers between plaintiffs and corporation, because transfers did not qualify under enumerated exemptions, Department of Taxes was in error, for the facts established that the transfer was to secure a debt, and the exemption applied. Wetherbee v. State, 132 Vt. 165, 315 A.2d 251, 1974 Vt. LEXIS 317 (1974).

    § 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.

    HISTORY: Added 1967, No. 146 , § 1, eff. Jan. 1, 1968; amended 1969, No. 144 , § 8, eff. June 1, 1969.

    History

    Amendments

    —1969. Section amended generally.

    § 9605. Payment of tax.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Revision note—

    Designated the existing provisions of the section as subsec. (a) and redesignated subsec. (c) as added by 1989, No. 222 (Adj. Sess.), § 22, as subsec. (b) to conform to V.S.A. style.

    Amendments

    —2019 (Adj. Sess.). Subsec. (a): Amended generally.

    —2009 (Adj. Sess.) Subsec. (a): Substituted “the commissioner” for “a town clerk” and deleted “the delivery to that clerk for recording of a deed evidencing a” preceding “transfer of title”.

    —1989 (Adj. Sess.). Subsec. (c): Added.

    Applicability of 2009 (Adj. Sess.). Amendment. 2009, No. 160 (Adj. Sess.) § 62(4) provides that “Secs. 16-20 [which amends this section and §§ 9606, 9607, 9608, and 9610 of this title] (property transfer tax) shall apply to transfers occurring on or after January 1, 2011.”

    § 9606. Property transfer return.

      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. (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.
    1. 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.
    2. 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.
    3. 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.
      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. (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.

    HISTORY: 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.

    History

    Revision note

    —2021. In subdiv. (e)(2), substituted “section 3102 of this title” for “ 32 V.S.A. § 3102 ” to conform to V.S.A. style.

    Revision note—. Changed phrase “this subchapter” to “this chapter” in subsec. (b) to conform classification of 1967, No. 146 to V.S.A. style.

    Amendments

    —2019. Subsec. (a): Added the subdiv. (a)(1) designation and “In the case of property transfer by deed” preceding “a property transfer” in that subdivision and added subdiv. (a)(2).

    Subsec. (e): Added the subdiv. (e)(1) designation and “In the case of property transferred by deed” preceding “the Commissioner of Taxes” in that subdivision and added subdiv. (e)(2).

    —2017. Subsec. (e): Added “, 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”.

    —2015. Subsec. (d): Amended generally.

    —2013. Section amended generally.

    —2009 (Adj. Sess.) Rewrote subsecs. (a) and (d).

    —2009. Subsec. (d): Substituted “$10.00” for “$7.00.”

    —2003 (Adj. Sess.). Subsec. (b): Deleted the fourth sentence.

    —2001 (Adj. Sess.) Subdiv. (c)(1): Substituted “potable water supplies and wastewater systems under chapter 64 of Title 10” for “the subdivision of lands under section 1218 of Title 18”.

    Subdiv. (c)(2): Deleted “and” following “zoning regulations”, inserted “and potable water supply and wastewater system requirements” preceding “pertaining”, deleted “limit” preceding “significantly” and inserted “limit” preceding “the use”.

    —1999 (Adj. Sess.). Subsec. (d): Substituted “$7.00” for “$4.00”.

    —1997. Subsec. (b): Added the fourth sentence.

    —1993 (Adj. Sess.). Subsec. (d): Substituted “$4.00” for “$2.00”.

    —1987. Subsec. (c): Amended generally by Act No. 64.

    Act No. 76 substituted “agency of natural resources” for “agency of environmental conservation”.

    Subsec. (e): Act No. 76 substituted “agency of natural resources” for “agency of environmental conservation”.

    Subsec. (g): Added by Act No. 64.

    —1981. Subsec. (f): Added.

    —1979 (Adj. Sess.). Subsec. (c): Substituted “secretary of the agency of environmental conservation” for “commissioner of health” in the first sentence and substituted “under section 1218 of Title 18” for “set forth in subchapter 10 of chapter 5 of regulations enacted by the state board of health on December 18, 1969 or any amendments thereto” in the second sentence.

    —1973 (Adj. Sess.). Subsec. (e): Added.

    —1971. Subsec. (d): Added.

    —1969 (Adj. Sess.). Subsec. (c): Added.

    Applicability of 2009 (Adj. Sess.) amendment. 2009, No. 160 (Adj. Sess.) § 62(4) provides that “Secs. 16-20 [which amends this section and §§ 9605, 9607, 9608, and 9610 of this title] (property transfer tax) shall apply to transfers occurring on or after January 1, 2011.”

    Applicability of 2013 amendments. 2013, No. 73 , § 60(8) provides that “Sec. 44 (eliminating signature requirement on property transfer tax returns) shall take effect for returns filed in municipal offices on and after July 1, 2013.”

    § 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.

    HISTORY: 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.

    History

    Amendments

    —2019. Inserted “or the document evidencing the transfer or acquisition of a direct or indirect controlling interest in any person with title to property” in the middle of the second sentence, and inserted “or document” following “to a deed” in the last sentence.

    —2009 (Adj. Sess.) Deleted “complete and regular on its face, together with the tax payment, if any, called for by that return” following “certificate”, and substituted “subdivision 1671(a)(6) of this title” for “the preceding section” and “return and certificate” for “return, certificate and payment” in the first sentence.

    —1971. Inserted “and the fee required under the preceding section” preceding “the clerk” in the first sentence.

    —1969 (Adj. Sess.). Inserted “and certificate” preceding “complete” and “certificate” preceding “and payment” in the first sentence and inserted “certificate” preceding “was filed” in the second sentence.

    Applicability of 2009 (Adj. Sess.). Amendment. 2009, No. 160 (Adj. Sess.) § 62(4) provides that “Secs. 16-20 [which amends this section and §§ 9605, 9606, 9608, and 9610 of this title] (property transfer tax) shall apply to transfers occurring on or after January 1, 2011.”

    § 9608. Prohibition against certain recordings.

    1. 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 Natural Resources 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.
    2. 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.

    HISTORY: 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.

    History

    Revision note—

    In the first sentence, substituted “subdivision 9603(17) of this title” for “section 9603(17)” to conform reference to V.S.A. style.

    Amendments

    —2019. Subsec. (a): Substituted “that” for “which” following “to transfers”, and inserted “or document evidencing the transfer or acquisition of a direct or indirect controlling interest in any person with title to property” following “any deed” in the first sentence.

    —2013 (Adj. Sess.). Subsec. (a): Deleted “signed under oath by the seller or the seller’s legal representative,” following “Commissioner of Taxes”.

    —2013. Subsec. (a): Substituted “Natural Resources Board” for “land use panel” in the first sentence.

    —2009 (Adj. Sess.) Subsec. (a): Substituted “is not attached a properly executed transfer tax return, complete and regular on its face” for “has not been affixed an acknowledgment of return and tax payment under section 9607 of this title” in the first sentence.

    —2003 (Adj. Sess.). Subsec. (a): Substituted “land use panel of the natural resources” for “environmental” preceding “board” in the first sentence.

    —1991. Designated the existing provisions of the section as subsec. (a) and added subsec. (b).

    —1987. Inserted “and the commissioner of the department of taxes” following “environmental board” and substituted “the seller’s” for “his” preceding “legal” in the first sentence and added the second and third sentences.

    —1981 (Adj. Sess.). Added “or both” following “year” in the third sentences.

    —1981. Added “except as to transfers which are exempt pursuant to section 9603(17)” preceding “no town clerk” in the first sentence.

    —1971. (Adj. Sess.). Added “or his legal representative” following “seller” in the first sentence.

    —1969 (Adj. Sess.). Act No. 250 rewrote the first sentence, deleted “or any other section of this act” preceding “shall” in the second sentence and added the third sentence.

    Act No. 291 inserted “certificate” following “return” and “as required” following “payment” in the first sentence and deleted “or any other section of this act” preceding “shall” in the second sentence.

    Applicability of 2009 (Adj. Sess.). Amendment. 2009, No. 160 (Adj. Sess.) § 62(4) provides that “Secs. 16-20 [which amends this section and §§ 9605, 9606, 9607, and 9610 of this title] (property transfer tax) shall apply to transfers occurring on or after January 1, 2011.”

    Statutory Revision. 2013, No. 11 , § 25(1) provides that the Office of the Legislative Council, in its statutory revision authority under 2 V.S.A. § 424 , is directed to replace the terms “Land Use Panel of the Natural Resources Board with references to the Natural Resources Board. For example, the Office of Legislative Council shall, as appropriate, replace ‘land use panel’ with ‘Natural Resources Board’ or ‘Board.”’

    Notes to Opinions

    Certificate.

    This section requires a certificate in order for a deed of any kind to be recorded by a town clerk. 1970-72 Vt. Op. Att'y Gen. 294.

    § 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.

    HISTORY: Added 1967, No. 146 , § 1, eff. Jan. 1, 1968.

    § 9610. Remittance of return and tax; inspection of returns.

    1. 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.
    2. The copies of property transfer returns in the custody of the town clerk may be inspected by any member of the public.
    3. 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, two 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.
      1. (d) (1)
      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.

      Subsection (d) repealed effective July 1, 2039.

      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 .

    HISTORY: 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.

    History

    Amendments

    —2017. Subsec. (c): Substituted “and subdivision 435(b)(10) of this title, two percent” for “and 32 V.S.A. § 435(b)(10) , one percent”.

    Subsec. (d): Added.

    —2011. Subsec. (c): Act No. 45, § 34 substituted “two” for “one” preceding “percent”; deleted “tax” preceding “department”; inserted “of taxes” following “department” and added the last sentence.

    Subsec. (c): Act No. 45, § 35 substituted “one” for “two” preceding “percent” and deleted “last sentence.”

    —2009 (Adj. Sess.) Subsec. (a): Amended generally.

    —1999 (Adj. Sess.). Subsec. (c): Added.

    —1995. Subsec. (d): Act No. 5 deleted the second sentence.

    Repealed by Act No. 63.

    —1993 (Adj. Sess.). Subsec. (c): Repealed.

    Subsec. (d): Added.

    —1989. Subsec. (c): Rewrote subdivs. (1) through (3).

    —1987 (Adj. Sess.). Subsec. (c): Added.

    —1971. Section amended generally.

    —1969 (Adj. Sess.). Added reference to certificate in opening paragraph.

    Subdiv. (3): Added.

    Application of repeal of subsec. (c). 1993, No. 210 (Adj. Sess.), § 275c, provided that § 275a of that act, which repealed subsec. (c) of this section, was to affect fiscal years 1996 and thereafter.

    Applicability of 2009 (Adj. Sess.) amendment. 2009, No. 160 (Adj. Sess.) § 62(4) provides that “Secs. 16-20 [which amends this section and §§ 9605, 9606, 9607, and 9608 of this title] (property transfer tax) shall apply to transfers occurring on or after January 1, 2011.”

    Prospective repeal of subsec. (d). 2017, No. 85 , § I.11(a)(4), provides for the repeal of subsec. (d) of this section on July 1, 2039.

    § 9611. Regulations of Commissioner.

    The Commissioner may, from time to time, issue, amend, and withdraw regulations interpreting and implementing this chapter.

    HISTORY: Added 1967, No. 146 , § 1, eff. Jan. 1, 1968.

    CROSS REFERENCES

    Procedure for adoption of administrative rules, see 3 V.S.A. chapter 25.

    ANNOTATIONS

    Cited.

    Cited in Farmers Production Credit Association v. State, 144 Vt. 581, 481 A.2d 18, 1984 Vt. LEXIS 517 (1984).

    §§ 9612, 9613. Repealed. 1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.

    History

    Former §§ 9612, 9613. Former § 9612, relating to interest, was derived from 1971, No. 73 , § 45 and amended by 1979, No. 105 (Adj. Sess.), § 36 and 1981, No. 191 (Adj. Sess.), § 7.

    Former § 9613, relating to penalties, was derived from 1971, No. 73 , § 46 and amended by 1979, No. 105 (Adj. Sess.), § 37.

    See also §§ 3202 and 3203 of this title, relating to interest and penalties.

    § 9614. Taxes as personal debt to State.

    1. 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.
    2. 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.

    HISTORY: Added 1971, No. 73 , § 47, eff. April 16, 1971; amended 1991, No. 186 (Adj. Sess.), § 26, eff. May 7, 1992.

    History

    Revision note—

    Reference to “an action of contract” in subsec. (a) changed to “a civil action” to conform to V.R.C.P., Rule 2 pursuant to 1971, No. 185 (Adj. Sess.), § 2136(d). See note under 4 V.S.A. § 219 .

    Substituted “section” for “statute” at the end of subsec. (a) to conform to V.S.A. style.

    Amendments

    —1991 (Adj. Sess.). Subsec. (b): Substituted “six” for “three” preceding “years” in the first and third sentences.

    § 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 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 through 5193 and sections 5253 through 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.

    HISTORY: Added 1971, No. 73 , § 48, eff. April 16, 1971.

    § 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.

    HISTORY: 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 subsection (a) 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 his or her 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 him or her under this title or in any application made by him 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, 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 subsection (a) of this section shall be the petition for determination of the deficiency or assessment provided by subsection (b) of this section, and the appeal from an adverse determination of deficiency or assessment provided under subsection (e) of this section.
    7. Upon the failure of a taxpayer to petition in accordance with subsection (b) of this section from a notice of deficiency or assessment issued under subsection (a) of this section, or to appeal in accordance with subsection (e) of this section from a determination of a deficiency or assessment of tax liability under subsection (b) 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 therein set forth, in any proceeding, including proceeding for the enforcement or collection of all or any part of the tax liability.
    8. 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 his or her determination concerning the refund request. The Commissioner’s determination may be appealed as provided in subsection (e) of this section. This shall be a taxpayer’s exclusive remedy with respect to the refund of taxes under this chapter.

    HISTORY: Added 1979, No. 105 (Adj. Sess.), § 38; amended 1989, No. 222 (Adj. Sess.), § 37; 1997, No. 156 (Adj. Sess.), § 20, eff. April 29, 1998.

    History

    Revision note

    —2021. In subsec. (g), deleted “, without limitation,” following “including” in accordance with 2013, No. 5 , § 4.

    Amendments

    —1997 (Adj. Sess.). Subsec. (h): Added.

    —1989 (Adj. Sess.). Subsec. (b): Substituted “60” for “thirty” in the first sentence.

    § 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.

    HISTORY: Added 1993, No. 85 , § 3(b), eff. Jan. 1, 1994; amended 2019, No. 71 , § 15.

    History

    Amendments

    —2019. Deleted the second sentence.

    Applicability of enactment.

    1993, No. 85 , § 4, eff. Jan. 1, 1994, provided:

    “(a) This act [which added this section, amended §§ 5 and 6006 of Title 8, repealed chapter 17 of Title 11, enacted Title 11A, and added § 1613 of Title 12] applies to all domestic corporations in existence on its effective date [Jan. 1, 1994] that were incorporated under any general statute of this state relating to incorporation of corporations for profit, where the power to amend or repeal the statute under which the corporation was incorporated was reserved by the general assembly.

    “(b) A foreign corporation authorized to transact business in this state on the effective date of this act is subject to this act but is not required to obtain a new certificate of authority to transact business under this act.”

    Chapter 233. Sales and Use Tax

    CROSS REFERENCES

    Motor vehicle purchase and use tax, see chapter 219 of this title.

    ANNOTATIONS

    Cited.

    Cited in American Trucking Ass'ns, Inc. v. Conway, 146 Vt. 574, 508 A.2d 405, 1986 Vt. LEXIS 328 (1986); In re Grand Jury Subpoena, 118 F.R.D. 558, 1987 U.S. Dist. LEXIS 13001 (D. Vt. 1987).

    Subchapter 1. General Provisions

    § 9701. Definitions.

    Unless the context in which they occur requires otherwise, the following terms when used in this chapter mean:

    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.
      1. “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: (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:
        1. the seller’s cost of the property sold;
        2. 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;
        3. charges by the seller for any services necessary to complete the sale, other than installation charges; and
        4. delivery charges;

          and including consideration received by the seller from third parties if:

          1. 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;
          2. the seller has an obligation to pass the price reduction or discount through to the purchaser;
          3. 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
          4. one of the following criteria is met:
            1. 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;
            2. 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
            3. 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.
      2. “Sales price” shall not include:
        1. 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;
        2. 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;
        3. 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;
        4. installation charges;
        5. credit for any trade-in; and
        6. telecommunications nonrecurring charges.
    4. “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.
    5. “Purchase price” means the measure subject to use tax and has the same meaning as sales price.
    6. “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.
    7. “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.
    8. “Vendor” means:
      1. A person making sales of tangible personal property or services, the receipts from which are taxed by this chapter.
      2. 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.
      3. A person who:
        1. solicits sales of tangible personal property either by employees, independent contractors, agents, or other representatives;
        2. owns or controls a person engaged in the same manner or similar line of business in this State; or
        3. 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.
      4. 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.
      5. 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.
      6. 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:
        1. engages in regular, systematic, or seasonal solicitation of sales of tangible personal property in this State:
          1. by the display of advertisements in this State;
          2. by the distribution of catalogues, periodicals, advertising flyers, or other advertising by means of print, radio, or television media; or
          3. by mail, Internet, telephone, computer database, cable, optic, cellular, or other communication systems, for the purpose of effecting sales of tangible personal property; and
        2. 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.
      7. 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.
      8. 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:
        1. 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;
        2. ownership of, or receipt of services from, computer servers in this State;
        3. receipt of computer processing or web hosting services from a computer service provider or web hosting service in this State.
      9. 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.
      10. 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.
      11. 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.
    9. “Trade-in” means an allowance, including any core charges, made for like-kind property given to a vendor.
    10. “Place of entertainment” means any place where any facilities for entertainment, recreation, amusement, or sports are provided.
      1. “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 his or her own use. (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 his or her own use.
      2. Aircraft as defined in 5 V.S.A. § 202(6) , snowmobiles as defined in 23 V.S.A. § 3201(5) , motorboats as defined in 23 V.S.A. § 3302(4) , and vessels as defined in 23 V.S.A. § 3302(11) that are 16 feet or more in length, are hereby specifically excluded from the definition of casual sale.
    11. “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.
    12. “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.
    13. “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.
    14. “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:
      1. the activity was not performed by the business itself but was contracted out to another business; and
      2. the charges therefor were passed through the business to its client.
    15. “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.
    16. “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.
    17. “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:
      1. 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.
      2. Installation or maintenance of wiring or equipment on a customer’s premises.
      3. Tangible personal property.
      4. Advertising, including directory advertising.
      5. Billing and collection services provided to third parties.
      6. Internet access service.
      7. 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.
      8. Ancillary services.
      9. Digital products delivered electronically, including software, music, video, reading materials, or ring tones.
    18. [Repealed.]
    19. “Mobile telecommunications service” means mobile telecommunications service as defined in 4 U.S.C. § 124.
    20. [Repealed.]
    21. “Alcoholic beverages” means beverages that are suitable for human consumption and contain one-half of one percent or more of alcohol by volume.
    22. “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.
      1. “Clothing” shall include:
        1. aprons, household and shop;
        2. athletic supporters;
        3. baby receiving blankets;
        4. bathing suits and caps;
        5. beach capes and coats;
        6. belts and suspenders;
        7. boots;
        8. coats and jackets;
        9. costumes;
        10. diapers, child and adult, including disposable diapers;
        11. earmuffs;
        12. footlets;
        13. formal wear;
        14. garters and garter belts;
        15. girdles;
        16. gloves and mittens for general use;
        17. hats and caps;
        18. hosiery;
        19. insoles for shoes;
        20. lab coats;
        21. neckties;
        22. overshoes;
        23. pantyhose;
        24. rainwear;
        25. rubber pants;
        26. sandals;
        27. scarves;
        28. shoes and shoelaces;
        29. slippers;
        30. sneakers;
        31. socks and stockings;
        32. steel-toed shoes;
        33. underwear;
        34. uniforms, athletic and nonathletic; and
        35. wedding apparel.
      2. “Clothing” shall not include:
        1. belt buckles sold separately;
        2. costume masks sold separately;
        3. patches and emblems sold separately;
        4. sewing equipment and supplies, including knitting needles, patterns, pins, scissors, sewing machines, sewing needles, tape measures, and thimbles; and
        5. sewing materials that become part of “clothing,” including buttons, fabric, lace, thread, yarn, and zippers.
    23. “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:
      1. briefcases;
      2. cosmetics;
      3. hair notions, including barrettes, hair bows, and hair nets;
      4. handbags;
      5. handkerchiefs;
      6. jewelry;
      7. sunglasses, nonprescription;
      8. umbrellas;
      9. wallets;
      10. watches; and
      11. wigs and hairpieces.
    24. “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.”
    25. “Dietary supplement” means any product, other than tobacco, intended to supplement the diet that:
      1. contains one or more of the following dietary ingredients:
        1. a vitamin;
        2. a mineral;
        3. an herb or other botanical;
        4. an amino acid;
        5. a dietary substance for use by humans to supplement the diet by increasing the total dietary intake; or
        6. a concentrate, metabolite, constituent, extract, or combination of any ingredients described in subdivisions (i) through (v) of this subdivision (27)(A);
      2. 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
      3. 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.
    26. “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.
    27. “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:
      1. recognized in the official U.S. Pharmacopeia, official Homeopathic Pharmacopeia of the United States, official National Formulary, or in supplements to any of them;
      2. intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or
      3. intended to affect the structure or any function of the body.
    28. “Durable medical equipment” means equipment including repair and replacement parts for such equipment, but does not include “mobility-enhancing equipment,” which:
      1. can withstand repeated use; and
      2. is primarily and customarily used to serve a medical purpose;
      3. generally is not useful to a person in the absence of illness or injury; and
      4. is not worn on the body.
    29. Subdivision (31) effective until March 1, 2022; see also subdivision (31) effective March 1, 2022, set out below.

      “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, or soft drinks.

      (31)

      Subdivision. (31) effective March 1, 2022; see subdivision. (31) effective until March 1, 2022, set out above.

      “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.

    30. “Grooming and hygiene products” means soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and screens.
    31. “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.
      1. “Lease or rental” does not include:

        (1) 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.

        (2) 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.

        (3) 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.

      2. “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).
    32. “Mobility-enhancing equipment” means equipment including repair and replacement parts of such equipment, but does not include “durable medical equipment,” which:
      1. 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;
      2. is not generally used by persons with normal mobility; and
      3. does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
    33. “Prosthetic device” means a replacement, corrective, or supportive device, including repair and replacement parts for such device worn on or in the body to:
      1. artificially replace a missing portion of the body;
      2. prevent or correct a physical deformity or malfunction; or
      3. support a weak or deformed portion of the body.
    34. “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:
      1. breathing masks;
      2. clean room apparel and equipment;
      3. ear and hearing protectors;
      4. face shields;
      5. hardhats;
      6. helmets;
      7. paint or dust respirators;
      8. protective gloves;
      9. safety belts;
      10. safety glasses and goggles;
      11. tool belts; and
      12. welders’ gloves and masks.
    35. “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:
      1. ballet and tap shoes;
      2. cleated or spiked athletic shoes;
      3. gloves, including baseball, bowling, boxing, hockey, and golf;
      4. goggles;
      5. hand and elbow guards;
      6. life preservers and vests;
      7. mouth guards;
      8. roller and ice skates;
      9. shin guards;
      10. shoulder pads;
      11. ski boots;
      12. waders; and
      13. wetsuits and fins.
    36. “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.
    37. “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.
    38. “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.
    39. “Coin-operated telephone service” means a telecommunications service paid for by inserting money into a telephone accepting direct deposits of money to operate.
    40. “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.
    41. “Telecommunication nonrecurring charges” means an amount billed for the installation, connection, change, or initiation of telecommunications service received by the customer.
    42. “Directory assistance” means an ancillary service of providing telephone number information or address information, or both.
    43. “Transferred electronically” means obtained by the purchaser by means other than tangible storage media.
    44. “Specified digital products” means digital audiovisual works, digital audio works, digital books, or ringtones that are transferred electronically.
      1. “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.
      2. “Digital audio works” means works that result from the fixation of a series of musical, spoken, or other sounds, including ringtones.
      3. “Digital books” means works that are generally recognized in the ordinary and usual sense as “books.”
      4. “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.
    45. “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.
    46. “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.
    47. “Manipulated animal manure” means manure that is ground, pelletized, mechanically dried, or consists of separated solids.
    48. “Perlite” means a lightweight granular material made of volcanic material expanded by heat treatment for use in growing media.
    49. “Planting mix” means material that is:
      1. used in the production of plants; and
      2. made substantially from compost, peat moss, or coir and other ingredients that contribute to fertility and porosity, including perlite, vermiculite, and other similar materials.
    50. “Vermiculite” means a lightweight mica product expanded by heat treatment for use in growing media.
    51. “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.
    52. “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.
    53. “Advanced wood boiler” means a boiler or furnace:
      1. installed as a primary central heating system;
      2. rated as high efficiency, meaning a higher heating value or gross calorific value of 85 percent or more;
      3. containing at least one week fuel storage, automated startup and shutdown, and fuel feed; and
      4. meeting other efficiency and air emissions standards established by the Department of Environmental Conservation.
    54. “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:
      1. directly or indirectly through one or more affiliated persons, in any of the following:
        1. transmitting or otherwise communicating the offer or acceptance between purchasers and marketplace sellers;
        2. owning or operating the infrastructure, electronic or physical, or technology that brings purchasers and marketplace sellers together;
        3. providing a virtual currency that purchasers are allowed or required to use to purchase products from marketplace sellers; or
        4. 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
      2. in any of the following activities with respect to the marketplace seller’s products:
        1. payment processing services;
        2. fulfillment or storage services;
        3. listing products for sale;
        4. setting prices;
        5. branding sales as those of the marketplace facilitator;
        6. order taking;
        7. advertising or promotion; or
        8. providing customer service or accepting or assisting with returns or exchanges.
    55. “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.
    56. “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.
    57. “Affiliated person” means a person who, with respect to another person:
      1. has an ownership interest of more than five percent, whether direct or indirect, in the other person; or
      2. 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.

    HISTORY: 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. 1 60 (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.

    History

    Revision note

    —2013. Deleted “but not limited to” following “including” and “but not be limited to” following “shall include” throughout the section in accordance with 2013, No. 5 , § 4.

    Revision note—. In subdiv. (12)(B), substituted “section 3302(4) of Title 23” for “section 3302(1) of Title 23” and “section 3302(11) of Title 23” for “section 3302(5) of Title 23” to conform references to text of section 3302 of Title 23, as amended.

    Amendments

    —2019 (Adj. Sess.). Subdiv. (9): Act No. 175 substituted “the” for “any” following “during” in subdivs. (F)(ii), (J), and (K).

    Subdiv. (31): Act No. 64 inserted “cannabis and cannabis products as defined under 7 V.S.A. § 831 .”

    —2019. Subdiv. (9)(J) and (9)(K): Added.

    Subdiv. (14): Added the second sentence.

    Subdivs. (56) through (59): Added.

    —2017 (Adj. Sess.). Subdiv. 55: Added.

    —2015 (Adj. Sess.). Subdiv. (5): Added the second sentence.

    Subdiv. (9)(F): Rewrote the subdivision.

    Subdiv. (54): Added.

    —2015. Subdiv. (31): Substituted “beverages, tobacco, or soft drinks” for “beverages or tobacco” in the last sentence.

    Subdiv. (54): Added.

    —2013 (Adj. Sess.). Subdiv. (5): Inserted “, 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” at the end.

    Subdivs. (48)-(52): Added.

    —2011. Subdiv. (9)(I): Added.

    —2009 (Adj. Sess.) Subdiv. (11): Substituted the first occurrence of “entertainment” for “amusement”.

    —2009. Subdivs. (45) through (47): Added.

    —2005 (Adj. Sess.). Subdiv. (9)(H): Substituted “person who provides telecommunications service” for “telecommunications service provider” and “subdivision (19) of this section” for “ 30 V.S.A. § 7501 ”.

    —2005. Subdiv. (4)(A)(iv): Amended generally.

    Subdiv. (4)(B): Added subdiv. (vi).

    Subdiv. (19): Amended generally.

    Subdivs. (38) through (44): Added.

    —2003 (Adj. Sess.). Subdivs. (20) and (22): Deleted.

    Subdiv. (29): Deleted “including blood, blood plasma, insulin, and oxygen” following “or preparation” in the introductory paragraph.

    —2003. Section amended generally.

    —2001 (Adj. Sess.) Subdiv. (4): Inserted “and excluding any allowance, including core charges, made for a trade-in of like-kind property” following “vendor to the purchaser” in the first sentence.

    Subdiv. (9): Amended generally.

    Subdiv. (20): Deleted “mobile telephone service” preceding “maritime systems” and added the third sentence.

    Subdiv. (21): Added.

    Subdiv. (22): Added.

    —1999. Subdiv. (14): Inserted “or other entity” preceding “or of a dissolved” and substituted “entity” for “corporation” thereafter, inserted “or entity” following “for the corporation”, and deleted “and any member of a partnership” following “of this chapter” in the second sentence.

    —1997. Subdiv. (4): Added the last sentence.

    Subdiv. (5): Inserted “or telecommunications service” following “personal property” in the first sentence.

    Subdiv. (9)(H): Added.

    Subdivs. (19) and (20): Added.

    —1995 (Adj. Sess.) Subdiv. (5): Added the third sentence.

    Subdiv. (6): Amended generally.

    Subdivs. (16)-(18): Added.

    —1991 (Adj. Sess.). Subdiv. (9)(F)(iii): Made a minor change in punctuation.

    —1991. Subdiv. (4): Added the second sentence.

    —1989 (Adj. Sess.). Subdiv. (9): Act No. 210 amended subdiv. (C) generally and added subdivs. (F) and (G).

    Subdiv. (10): Act No. 222 added “or other audio or video programming systems that operate by wire, coaxial cable, lightwave, microwave, satellite transmission or by other similar means” following “television systems”.

    —1989. Subdiv. (12)(B): Substituted “202(6)” for “2(5)” preceding “of Title 5”.

    —1987 (Adj. Sess.). Subdiv. (12): Amended generally.

    —1983 (Adj. Sess.). Subdiv. (12)(B): Substituted “3201(5) of Title 23” for “801(6) of Title 31” preceding “and motorboats as defined in section” and “3302(1) of Title 23” for “302(1) of Title 25” thereafter.

    —1979 (Adj. Sess.). Subdiv. (12)(A): Redefined casual sale.

    —1977. Subdiv. (6): Added exception at the end of the first sentence and added the second sentence.

    Subdiv. (12)(A): Deleted “by a person who is not regularly engaged in the business of making sales at retail” preceding “where such”.

    —1975 (Adj. Sess.). Subdiv. (12): Designated the existing subdivision as par. (A) and added par. (B).

    Contingent effective date. 2015, No. 134 (Adj. Sess.), § 41(4) provided that §§ 21a, which enacted 32 V.S.A. § 9248 , and 25-26, which amended subdiv. (54) of this section and enacted 32 V.S.A. § 9712 , “shall take effect on the early of July 1, 2017, or beginning on the first day of the first quarter after the sales and use tax reporting requirements challenged in Direct Marketing Assoc. v. Brohl, 814 F.3d 11129 (10th Cir. 2016) are implemented by the State of Colorado.”

    Contingent effective date. 2015, No. 134 (Adj. Sess.), § 41(5) provided that: “Sec. 27 (definition of vendor) [which enacted subdiv. (9)(F) of this section] shall take effect on the later of July 1, 2017 or beginning on the first day of the first quarter after a controlling court decision or federal legislation abrogates the physical presence requirement of Quill v. North Dakota, 504 U.S. 298 (1992).”

    Applicability of 2011 amendment. 2011, No. 45 , § 37(13) provides: “Sec. 36a [which amended this section by adding subdiv. (9)(I)] (Internet affiliate sales tax) shall take effect on the date on which, through legislation, rule, agreement, or other binding means, 15 or more other states have adopted requirements that are the same, substantially similar, or significantly comparable to the requirements contained in Sec. 36a. The attorney general shall determine when this date has occurred.” The Office of the Attorney General determined that the requirements of 2011, No. 45 , § 37(13) were met on October 1, 2015.

    Applicability of 2009 (Adj. Sess.) amendment. 2009, No. 160 (Adj. Sess.), § 62(12) provides that Secs. 38 and 39 [which amended subdiv. (11) of this section] relating to changing the term “amusement” to “entertainment”, and in Sec. 41, the lead-in paragraph and subdivs. (1), (3), (5), and (7) of 32 V.S.A. § 9743 (entertainment sales and use tax) shall take effect on April 1, 2011, and shall apply to charges for admission to a place of entertainment on or after April 1, 2011.

    Effective date of amendments—

    2005. 2005, No. 75 , §§ 21-23 take effect July 1, 2005. § 24 takes effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreements, but no earlier than July 1, 2005.

    Effective date of amendments—

    2003 (Adj. Sess.). 2003, No. 152 (Adj. Sess.), § 23(5), eff. June 7, 2004, provided that the amendment to this section, by § 16 of that act, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreements, but no earlier than July 1, 2005.

    Applicability of 2003 amendments. 2003, No. 68 , § 87(17) provides that §§ 51-67 of that act [§§ 51-56 amend this section], relating to streamlined sales tax provisions, including provisions relating to alcoholic beverages, clothing, and $20.00 telecommunications credit, and provisions relating to local option taxation of telecommunications and exemption of clothing, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreement, but no earlier than January 1, 2005.

    Applicability of amendment to subdiv. (9). 2001, No. 144 (Adj. Sess.), § 42(9), provides that § 30 of that act [which amends subdiv. (9) of this section] shall apply to taxable years beginning on or after January 1, 2002.

    Applicability of amendment to subdiv. (20) and addition of subdivs. (21) and (22). 2001, 144 (Adj. Sess.), § 42(11), provides that §§ 33 and 34 of that act [which amends subdiv. (20) and adds subdivs. (21) and (22) to this section, respectively] shall apply to customer bills issued after August 1, 2002.

    1997 amendment. 1997, No. 60 , § 100(k)(7), eff. June 26, 1997, provided that the amendments to this section by §§ 76 and 77 of that act, shall apply to services that are provided on or after September 1, 1997 and are billed in the regular course of the provider’s business on or after October 1, 1997.

    Retroactive effect of 1979 (Adj. Sess.) amendment. 1979, No. 105 (Adj. Sess.), § 49(1) provided: “Sec. 39 [which amended subdiv. (12)(A) of this section] shall take effect from passage [April 2, 1980] and be effective for all returns for sales made on and after January 1, 1977.”

    Prewritten software accessed remotely. 2015, No. 51 , § G.8 provides: “Charges for the right to access remotely prewritten software shall not be considered charges for tangible personal property under 32 V.S.A. § 9701(7) .”

    ANNOTATIONS

    Amusement charges.

    Fees charged by cable television companies for installation and connection of service were “service charges” within meaning of statute imposing sales taxes on amusement charges, and these fees were therefore subject to sales tax under Vermont law. Mountain Cable Co. v. Department of Taxes, 168 Vt. 454, 721 A.2d 507, 1998 Vt. LEXIS 392 (1998).

    Collectors.

    Since vendors are, under subdiv. (14) of this section, collectors of the sales tax, and since it is patently unlikely that the Legislature meant by this definition that a vendor should “collect” a tax from itself, it must be contemplated, as a simple logical progression, that they will collect from someone, which means the taxpayer. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    Rentals.

    Where construction company owned equipment and rented it to wholly-owned subsidiary that did certain nonunion work on building constructed for, and then sold to, housing authorities, provision of this section that a rental is a sale applied. Pizzagalli v. Department of Taxes, 132 Vt. 496, 321 A.2d 437, 1974 Vt. LEXIS 376 (1974).

    Retail sales.

    Sales of wrapping and packaging supplies, including paper bags, by corporation to retail grocery stores were sales at retail within meaning of subdiv. (5) of this section since transfer of title and possession of bags and packaging materials by retail grocers to their customers were not made “for a consideration” within the meaning of subdiv. (6) of this section and, therefore, sales to retailers were not exempt from tax as sales for subsequent resale. Wetterau, Inc. v. Department of Taxes, 141 Vt. 324, 449 A.2d 896, 1982 Vt. LEXIS 527 (1982).

    Tangible personal property.

    Computer software tape purchased by bank to enable its computer to keep records and perform various accounting functions in connection with its residential mortgage loan business constituted “tangible personal property” for purposes of § 9773 of this title, the compensating use tax, since it could be seen, weighed, measured and touched, was not a credit or right, and its purchase did not involve a service-type transaction. Chittenden Trust Co. v. King, 143 Vt. 271, 465 A.2d 1100, 1983 Vt. LEXIS 512 (1983).

    Use.

    Presence of foreign corporation’s construction equipment in Vermont in performance of any contract, in storage between contracts, or following completion of contract would constitute “use” within meaning of § 9774(b)(2) of this title. In re R. S. Audley, Inc., 151 Vt. 513, 562 A.2d 1046, 1989 Vt. LEXIS 87 (1989).

    Cited.

    Cited in Frank W. Whitcomb Construction Corp. v. Commissioner of Taxes, 144 Vt. 466, 479 A.2d 164, 1984 Vt. LEXIS 506 (1984); Vermont Structural Steel v. Department of Taxes, 153 Vt. 67, 569 A.2d 1066, 1989 Vt. LEXIS 240 (1989); Burlington Electric Dept. v. Department of Taxes, 154 Vt. 332, 576 A.2d 450, 1990 Vt. LEXIS 58 (1990); In re Christie, 139 B.R. 612, 1992 Bankr. LEXIS 615 (Bankr. D. Vt. 1992); Morton Buildings, Inc. v. Department of Taxes, 167 Vt. 371, 705 A.2d 1384, 1997 Vt. LEXIS 289 (1997); Rock v. Department of Taxes, 170 Vt. 1, 742 A.2d 1211, 1999 Vt. LEXIS 247 (1999).

    § 9702. General powers of the Commissioner or court.

    1. 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 such 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 he or she deems necessary, lists of specific items of tangible personal property that are found to be exempt from tax under section 9741 of this title.
    2. 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.
    3. [Repealed.]

    HISTORY: 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.

    History

    Amendments

    —1991 (Adj. Sess.). Subsec. (a): Deleted “to the commissioner” preceding “in this chapter” and substituted “the commissioner” for “he” thereafter in the introductory paragraph, deleted former subdiv. (1), redesignated former subdiv. (2) as subdiv. (1) and substituted “the commissioner” for “he” preceding “may require” and deleted “and, for cause shown abate penalties and interest” thereafter in that subdivision, deleted former subdiv. (3), redesignated former subdiv. (4) as subdiv. (2) and substituted “receipts” for “receipt” preceding “amusement” in that subdivision, redesignated former subdiv. (5) as subdiv. (3), deleted former subdiv. (6), redesignated former subdiv. (7) as subdiv. (4) and deleted former subdivs. (8)-(10).

    —1983 (Adj. Sess.). Subsec. (c): Repealed.

    —1975 (Adj. Sess.). Subdiv. (a)(2): Substituted “abate penalties and interest” for “to remit penalties but not interest computed at the rate of one-half per cent per month”.

    —1973 (Adj. Sess.). Changed “county court” to “superior court”.

    Effective date of amendments—

    1975 (Adj. Sess.). 1975, No. 154 (Adj. Sess.), § 16, provided, in part, that § 9, which amended subdiv. (a)(2) of this section, “shall be effective with respect to assessments made and returns filed after June 30, 1976”.

    CROSS REFERENCES

    Procedure for adoption of administrative rules, see 3 V.S.A. chapter 25.

    Enforcement of subpoenas issued by administrative agencies generally, see 3 V.S.A. § 809a .

    Modification of subpoenas or discovery orders issued by administrative agencies, see 3 V.S.A. § 809b .

    Punishment for perjury, see 13 V.S.A. § 2901 .

    Witness fees, see § 1551 of this title.

    ANNOTATIONS

    Delegation.

    In proceedings involving purchaser of goods against whom the Department of Taxes assessed an alleged sales tax deficiency based upon invoices for taxable purchases that did not state the three percent sales tax, certificates presented at the hearing before the Commissioner of Taxes, which were signed by the director of sales tax and which certified that the files of the Department had been examined and that no sales tax had been remitted by two of the purchaser’s vendors during part of the relevant period, were properly admitted into evidence since, even assuming without deciding that § 9813 of this title, governing presumptions and burden of proof, contemplated that the certificates were to be signed by the Commissioner, the duty was delegable pursuant to subdiv. (a)(3) of this section and, absent any evidence to the contrary, it would be assumed that the delegation was made. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    § 9703. Liability for tax.

    1. 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.
    2. 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.
    3. 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.
    4. 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.

    HISTORY: 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.

    History

    Editor’s note—

    The text of this section is based on the harmonization of two amendments. During the 1997 session, this section was amended twice, by Act Nos. 50 and 60, resulting in two versions of this section. In order to reflect all of the changes enacted by the Legislature during the 1997 session, the text of Act Nos. 50 and 60 was merged to arrive at a single version of this section. The changes that each of the amendments made are described in the amendment notes set out below.

    Amendments

    —2003 (Adj. Sess.). Subsec. (d): Added.

    —1999. Subsec. (a): Inserted “together with such interest and penalty as has accrued under the provisions of section 3202 of this title” following “amount of such tax”.

    —1997. Act No. 50 amended the section generally.

    Act No. 60 inserted “telecommunications services” preceding “or amusement charge” in the second sentence.

    —1989 (Adj. Sess.). In the second sentence, inserted “if the person required to collect the tax has failed to remit any portion of the tax to the commissioner” following “provided, however” and substituted “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 preceding” for “joined as a party in any action or proceeding brought to collect the tax” following “commissioner shall be”.

    Effective date of amendments—

    2003 (Adj. Sess.). 2003, No. 152 (Adj. Sess.), § 23(5), eff. June 7, 2004, provided that the amendment to this section, by § 20 of that act, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreements, but no earlier than July 1, 2005.

    1997 amendment. 1997, No. 60 , § 100(k)(7), eff. June 26, 1997, provided that the amendment to this section, by § 78 of that act, shall apply to services that are provided on or after September 1, 1997, and are billed in the regular course of the provider’s business on or after October 1, 1997.

    ANNOTATIONS

    Construction.

    Statutory duty for payment of withholding, sales and use, and rooms and meals taxes is imposed personally on corporate officer who, within corporate structure, has duty to collect and remit the taxes; in other words, officer’s corporate duty becomes a statutory duty, and personal liability attaches for nonperformance. Rock v. Department of Taxes, 170 Vt. 1, 742 A.2d 1211, 1999 Vt. LEXIS 247 (1999).

    Department of Taxes did not employ wrong legal standard in holding corporate officer personally liable for corporation’s outstanding withholding, sales and use, and rooms and meals taxes, since Department properly viewed officer’s actual authority and control over corporation’s financial affairs as evidence of his duty to remit taxes to State. Rock v. Department of Taxes, 170 Vt. 1, 742 A.2d 1211, 1999 Vt. LEXIS 247 (1999).

    The personal liability of the vendor for the amount of the sales tax under this section does not change the conclusion that the sales tax is imposed on the purchaser of goods and services, not on the vendor, since this section serves only to put teeth into the vendor’s responsibility to collect and pay over to the State the tax collected, and the further provisions of this section, giving the vendor a right of action against his purchaser as an aid in collecting the tax, lend further support for the interpretation of the statutory roles of purchasers and vendors as taxpayers and collectors, respectively. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    Construction with other laws.

    State was within its right under § 9705 of this title, governing payment and return by purchaser, in assessing an alleged sales tax deficiency against the purchaser, based upon invoices for taxable purchases that did not state the three percent sales tax, and the alternative of assessing the deficiency against the vendor, based on the vendor’s liability under this section, was no more than an option; it was not exclusive. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    Purpose.

    This section is a device to put teeth into a vendor’s duty to collect, but there is nothing in the section to compel the interpretation that the imposition of this conditional liability, per se, makes it exclusive. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    § 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.

    HISTORY: Added 1969, No. 144 , § 1, eff. June 1, 1969; amended 1991, No. 186 (Adj. Sess.), § 30, eff. May 7, 1992.

    History

    Amendments

    —1991 (Adj. Sess.). Inserted “and several” preceding “liability” in the section heading, “or she” following “he” in three places, “or her” following “him” and following “his”, and “and severally” following “jointly” and substituted “the” for “his” preceding “principal” in the text of the section.

    § 9705. Payment and return by purchaser.

    1. 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.
    2. 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.

    HISTORY: Added 1969, No. 144 , § 1, eff. June 1, 1969.

    ANNOTATIONS

    Construction.

    This section, which imposes a duty on a purchaser who fails to pay a sales tax to pay the tax directly to the State, carries with it, by implication, the right to assess deficiencies against the purchaser resulting from his failure to pay the taxes to the vendor. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    If the sales tax statutes were intended to make the vendor the taxpayer, and to do no more than permit the vendor to charge the amount of the tax over against the purchaser, it is not believable that this section would have been worded as it is; moreover, this section is entirely consistent with the purchaser-payor, vendor-collector interpretation of this chapter that was seemingly adopted by the Supreme Court in Rowe-Genereux, Inc. v. Department of Taxes, 138 Vt. 130, 133, 411 A.2d 1345, 1347 (1980). Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    Construction with other laws.

    State was within its right under this section in assessing an alleged sales tax deficiency against the purchaser, based upon invoices for taxable purchases which did not state the three percent sales tax, and the alternative of assessing the deficiency against the vendor, based on the vendor’s liability under § 9703 of this title, governing liability for tax, was no more than an option; it was not exclusive. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    § 9706. Statutory purposes.

    1. 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.
    2. The statutory purpose of the exemption for agricultural inputs in subdivision 9741(3) of this title is to promote Vermont’s agricultural economy.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. The statutory purpose of the exemption for commercial, industrial, or agricultural research tangible personal property use in subdivision 9741(24) of this title is to reduce financial barriers to research and innovation in the commercial, industrial, and agricultural industries.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    16. 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.
    17. 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.
    18. 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.
    19. 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).
    20. 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.
    21. 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.
    22. 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.
    23. 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.
    24. The statutory purpose of the tracked vehicles cap in subdivision 9741(38) of this title is to lessen the cost of capital investments.
    25. 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.
    26. 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 32 V.S.A. § 9741(49) and (50) 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.

      ( 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)

      Subsection (mm) effective March 1, 2022.

      The statutory purpose of the exemption for cannabis and cannabis products as defined under 7 V.S.A. § 831 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 feminine hygiene 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.

    HISTORY: 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.

    History

    Former § 9706. Former § 9706, relating to bulk sales and transfers of assignment of business assets, was derived from 1969, No. 144 , § 1. This section was previously repealed by 1991, No. 186 (Adj. Sess.), § 10(b), eff. May 7, 1992 and the subject matter was previously covered by § 3260 of this title.

    Revision note

    —2020. In subsec. (mm), substituted reference to “subdivision 9741(55) of this title” for “subdivision 9741(53) of this title” because subdiv. (53), as added by 2019, No. 164 (Adj. Sess.), § 16 was redesignated as subdiv. (55) to avoid conflict with subdiv. (53) as added by 2019, No. 46 , § 5.

    Amendments

    —2021. Subsec. (c): Act No. 20 inserted “prescription drugs intended for animal use, durable medical equipment and prosthetics for animal use, and” preceding the first instance of “veterinary” and substituted “9741(53)” for “9741(3)” following “subdivision”.

    Subsecs. (nn), (oo): Added by Act No. 73.

    —2019 (Adj. Sess.). Subsec. (mm): Added.

    —2017 (Adj. Sess.). Subsec. ( ll ): Added.

    —2017. Subsec. (d): Amended generally.

    Subsec. (kk): Added by Act Nos. 75 and 77.

    —2013 (Adj. Sess.). Subsec. (jj): Added.

    Effective date of amendments—

    2019 (Adj. Sess.). 2019, No. 164 (Adj. Sess.), § 33(d) provided that § 17 [which added subsec. (mm)] shall take effect March 1, 2022.

    Retroactive effective date of 2021 amendment. 2021, No. 73 , § 27(3) provides: “Notwithstanding 1 V.S.A. § 214 , Secs. 9-10 (current use contingent lien and subordination fee) and 11 (tax expenditure; statutory purpose) shall take effect retroactively on July 1, 2020. Secs. 9-10 shall take effect retroactively to correct an erroneous technical revision to 2019 Acts and Resolves, No. 20, Sec. 109(a).”

    § 9707. Registration.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: 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.

    History

    Amendments

    —2005. Added new subsec. (b) and redesignated former subsec. (b) as subsec. (c).

    —2003 (Adj. Sess.). Subsec. (a): Substituted “apply for a license” for “register with the state” in the first sentence; “license” for “certificate of authority” in the second and fourth sentences; “license” for “certificate” in the third and fifth sentences, and “licenses” for “certificates” in the last sentence.

    —2003. Subsec. (a): Substituted “register with the state in the manner prescribed by the commissioner” for “file with the commissioner a certificate of registration in a form prescribed by him” in the first sentence and inserted “or her” following “his” in two places.

    Subsec. (b): Substituted “register” for “if he so elects file a certificate of registration” and inserted “or her” in two places and “or she” in one.

    —1991 (Adj. Sess.). Subsec. (a): Substituted “before” for “on or before May 15, 1969, or in the case of persons” preceding “commencing” and deleted “after that date, within three days after the commencement or opening” following “places of business” in the first sentence.

    Applicability of 2003 amendment. 2003, No. 68 , § 87(17) provides that §§ 51-67 of that act [Sec. 57 amends this section], relating to streamlined sales tax provisions, including provisions relating to alcoholic beverages, clothing, and $20.00 telecommunications credit, and provisions relating to local option taxation of telecommunications and exemption of clothing, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreement, but no earlier than January 1, 2005.

    ANNOTATIONS

    Applicability.

    Although taxpayer claimed that he was not subject to use tax because he was broker/dealer of boats and did not purchase boat at retail but purchased boat at wholesale for resale in Vermont; and although taxpayer was dealer in Rhode Island, taxpayer did not purchase boat for resale in Vermont where evidence showed that taxpayer used boat for recreation in Vermont, did not advertise boat for sale, and did not register with the Department of Taxes as dealer to collect sales and use tax as required under 32 V.S.A. § 9707 ; in addition, taxpayer did not obtain a dealer registration for boat from Department of Motor Vehicles, nor had he ever sold a boat in Vermont; therefore taxpayer has failed to show he is not subject to the use tax. Bigelow v. Department of Taxes, 163 Vt. 33, 652 A.2d 985, 1994 Vt. LEXIS 169 (1994).

    § 9708. Restrictions on advertising.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: 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.

    HISTORY: Added 1969, No. 144 , § 1, eff. June 1, 1969.

    § 9710. Fundraising events; charitable organizations.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.

    HISTORY: Added 1989, No. 232 (Adj. Sess.), § 3.

    § 9711. Election by manufacturer or retailer.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.

    HISTORY: Added 2015, No. 134 (Adj. Sess.), § 23.

    § 9712. Notice requirements for noncollecting vendors.

    1. 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.
    2. 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.
    3. [Repealed.]
    4. 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.

    HISTORY: 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.

    History

    Amendments

    —2019 (Adj. Sess.). Subsec. (c): Repealed.

    —2017. Added new subsec. (c) and redesignated former subsec. (c) as subsec. (d).

    Contingent effective date. 2015, No. 134 (Adj. Sess.), § 41(4) provided that: “Secs. 21a (informational reporting) [which enacted 32 V.S.A. § 9248 ] and 25-26 (definition of vendor and out of state vendor notification requirements) [which amended 32 V.S.A. § 9701(54) and enacted this section] shall take effect on the earlier of July 1, 2017, or beginning on the first day of the first quarter after the sales and use tax reporting requirements challenged in Direct Marketing Assoc. v. Brohl, 814 F.3d 1129 (10th Cir. 2016) are implemented by the State of Colorado.”

    § 9713. Marketplace facilitators and marketplace sellers.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: 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, or any alcoholic beverages provided for immediate consumption.

      (11) [Repealed.]

      (12) Motor vehicle purchases and use taxed under chapter 219 of this title and the transactions exempted therefrom which are listed in section 8911 of this title. Provided, however, that notwithstanding subdivision 8911(5), 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) 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; machinery and equipment for use or consumption directly and exclusively, except for isolated or occasional uses, 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; and devices used to monitor manufacturing machinery and equipment or the product during the manufacturing process. Machinery and equipment used in administrative, managerial, sales, or other nonproduction activities, or used prior to the first production operation or subsequent to the initial packaging of a product, shall not be exempt from tax, unless such uses are merely isolated or occasional or unless the machinery used for initial packaging is also used for secondary packaging as part of an integrated process. Machinery and equipment shall not include buildings and structural components thereof. As used in this subdivision, 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. For the purposes of this subsection, “manufacture” includes extraction of mineral deposits, the entire printing and bookmaking process, and the entire publication process.

      (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:

      1. a net metering system as defined in 30 V.S.A. § 8002 ;
      2. 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
      3. 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.

        (52)

        Subdivision (52) repealed effective July 1, 2023.

        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)

        Subdivision (55) effective March 1, 2022.

        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, provided that the cannabis or cannabis product is sold only to registered qualifying patients directly or through their registered caregivers.

        (56) Feminine hygiene products. As used in this subdivision, “feminine hygiene products” means tampons, panty liners, menstrual cups, sanitary napkins, and other similar tangible personal property designed for feminine hygiene in connection with the human menstrual cycle but does not include “grooming and hygiene products” as defined in this chapter.

    HISTORY: 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.

    History

    Revision note

    —2020. Subdiv. (53), as added by 2019, No. 164 (Adj. Sess.), § 16 was redesignated as subdiv. (55) to avoid conflict with subdiv. (53) as added by 2019, No. 46 , § 5.

    —2008. Subdiv. (32), as added by 1989, No. 133 (Adj. Sess.), was redesignated as subdiv. (33) to avoid conflict with subdiv. (32) as added by 1989, No. 32 .

    Revision note—. Redesignated subdivs. (38) and (39) as added by 1997, Act No. 60, § 72a as subdivs. (39) and (40), respectively, and redesignated subdivs. (38) and (39) as added by 1997, Act No. 60, § 79 as subdivs. (41) and (42), respectively, to avoid conflict with subdiv. (38) as added by 1997, Act No. 50, § 45.

    Redesignated subdiv. (38) as added by 1997, No. 76 (Adj. Sess.), § 1, as subdiv. (44) to avoid conflict with subdiv. (38) as added by 1997, No. 50 , § 45.

    Amendments

    —2021. Subdiv. (26): Acts Nos. 54 and 73 added the present second and third sentences.

    Subdiv. (56): Added by Act No. 73.

    —2019 (Adj. Sess.). Act No. 150 added subdiv. (54).

    Act No. 164 added subdiv. (55).

    —2019. Subdiv. (3): Act No. 46 deleted “veterinary supplies” preceding “and bedding”.

    Subdiv. (12): Act No. 51 substituted “that” for “which” following “motorized equipment” in the second sentence, and added the last sentence.

    Subdiv. (51): Act No. 29 inserted “; and when sold for use on any machinery listed under this subdivision, traction enhancement accessories, tire chains, track systems, and winch cables” at the end of the first sentence.

    Subdiv. (53): Added by Act No. 46.

    —2017 (Adj. Sess.). Subdiv. (52): Added.

    —2017. Subdiv. (7): Amended generally by Act No. 75.

    Subdiv. (29): Act No. 73 inserted “, but not drones,” preceding “sold to a person”; and added “, other than drones” following “any aircraft”.

    Subdiv. (51): Added by Act Nos. 75 and 77.

    —2015 (Adj. Sess.). Subdiv. (10): Act No. 144 amended subdivision generally.

    Subdiv. (25): Act No. 100 amended subdivision generally.

    Subdiv. (39): Act No. 157 amended subdivision generally.

    —2015. Subdiv. (13): Amended generally.

    —2013 (Adj. Sess.). Subdiv. (26): Act No. 174 inserted “, 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” at the end of the first sentence.

    Subdiv. (39): Act No. 174 deleted subdiv. (39)(ii), and redesignated former subdiv. (39)(i) as present (39).

    Subdiv. (39)(ii): Repealed by Act No. 200.

    Subdiv. (46)(A): Act No. 99 substituted “8002” for “219a” following “30 V.S.A. §”.

    Subdiv. (46)(B): Act No. 99 substituted “§ 8002(16)(A), (C), and (D)” for “§ 219a(a)(3)(A), (C), (D), and (E)” following “30 V.S.A.”.

    Subdivs. (49) and (50): Added by Act No. 174.

    —2013. Subdiv. (2): Inserted “diagnosis or” preceding “treatment”.

    —2011 (Adj. Sess.). Subdiv. (2): Act No. 143 added the proviso at the end of the subdivision.

    Subdiv. (7): Act No. 153 added “and natural gas used to propel a motor vehicle”.

    Subdiv. (14): Act No. 143 added “or unless the machinery used for initial packaging is also used for secondary packaging as part of an integrated process” in the second sentence, and substituted “bookmaking” for “book making” in the last sentence.

    Subdiv. (48): Act No. 143 substituted “26 V.S.A. chapter 89” for “chapter 89 of Title 26” and added “and provided that the property was obtained by the owner, through purchase or otherwise, for his or her own use” at the end.

    —2011. Subdiv. (48): Added.

    —2007 (Adj. Sess.) Subdiv. (7): Inserted “aviation” preceding “jet fuel” and added “with the proceeds to be allocated to the transportation fund in accordance with section 11 of Title 19”.

    —2007. Subdiv. (29): Act No. 81, § 7, deleted “including depreciable parts, machinery and equipment to be installed as a capital asset in such aircraft” following “Aircraft” and inserted “, and parts, machinery, and equipment to be installed in any aircraft” following “or hire”.

    Subdiv. (29): Act No 81, § 7a, substituted “such” for “any” preceding “aircraft”.

    —2005. Subdiv. (38): No. 75, § 2, substituted “sale” for “purchase” and “$1,100.00” for “$900.00”.

    No. 75, § 2b, added “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 ten dollars, and shall publish this rounded amount as the new cap.”

    Subdiv. (42): Deleted by No. 75, § 22.

    —2003 (Adj. Sess.). Act No. 121 substituted “silage bags, agricultural wrap” for “recyclable silage bags and wrap”; and “sheets of plastic for bunker covers” for “obtained from a dealer who accepts used silage bags and wrap for recycling” in subdiv. (3).

    Act No. 152 inserted “including blood, blood plasma, insulin, and medical oxygen” following “supplies” in subdiv. (2).

    —2003. Section amended generally.

    —2001 (Adj. Sess.) Subdiv. (3): 2002, No. 140 (Adj. Sess.), § 35, deleted “fertilizers” preceding “baler twine”, inserted “other than pesticides” following “agriculture chemicals”, and added “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”.

    Subdiv. (45): 2002, No. 144 (Adj. Sess.), § 12, added “except specially protective steel- or Kevlar-toed footwear labeled as American National Standards Institute-approved under standard Z41 shall be exempt, regardless of price”.

    Subdiv. (46): 2002, No. 145 (Adj. Sess.), § 6, added the subdiv. (A) designation and added subdivs. (B) and (C).

    Subdiv. (47): Added by 2002, No. 138 (Adj. Sess.), § 5.

    —2001. Subdiv. (2): Deleted “sales or rentals of” preceding “stairlift chairs” and substituted “motorized carts and other devices used primarily to afford mobility to persons with physical disabilities” for “sold pursuant to a doctor’s prescription for human use” thereafter.

    —1999. Subdiv. (11): Repealed.

    Subdivs. (34) and (39): Amended generally.

    Subdiv. (40): Repealed.

    Subdiv. (45): Added by 1999, No. 49 , § 34, and pursuant to 1999, No. 49 , § 34a, substituted “including” for “excluding” preceding “footwear” and “but” for “and” thereafter and inserted “or footwear” preceding “designed primarily”.

    Subdiv. (46): Added.

    —1997 (Adj. Sess.). Act No. 71, in subdiv. (34), added the language beginning with “used on site” and ending with “of this title”; in subdiv. (39) deleted “calendar” after “three consecutive”, added “renovation” before “or expansion” and added the language beginning with “and similar sales”; and in subdiv. (40) substituted the current language for “Sales of building materials within any three consecutive calendar years, in excess of one million dollars in purchase value, incorporated into a downtown redevelopment project as defined by rule by the commissioner”.

    Subdiv. (38): Added by Act No. 76.

    Subdiv. (43): Added by Act No. 156.

    —1997. Subdiv. (12): Act No. 50, § 45 added the second sentence.

    Subdiv. (38): Added by Act No. 50, § 45 and Act No. 60, §§ 72a and 79.

    Subdiv. (39): Added by Act No. 60, §§ 72a and 79.

    —1995 (Adj. Sess.) Subdivs. (35)-(37): Added.

    —1995. Subdiv. (34): Amended generally.

    —1993. Subdiv. (14): Deleted “but does not include fuel and electricity” following “property for sale” in the first sentence.

    Subdiv. (34): Added.

    —1991 (Adj. Sess.). Subdiv. (3): Inserted “recyclable silage bags and wrap obtained from a dealer who accepts used silage bags and wrap for recycling” following “twine”.

    —1991. Subdiv. (5): Deleted “and vinous” preceding “beverages”.

    Subdiv. (8): Repealed.

    —1989 (Adj. Sess.). Subdiv. (2): Act No. 174 added “and sales or rentals of stairlift chairs sold pursuant to a doctor’s prescription for human use” at the end of the subdivision.

    Subdiv. (32): Added by Act No. 133.

    —1989. Subdiv. (32): Added.

    —1987 (Adj. Sess.). Subdiv. (31): Added.

    —1987. Subdiv. (13): Act No. 113 inserted “purchases made with food stamps” preceding “food products”.

    Subdiv. (30): Act No. 82 deleted “for compensation or hire by any person” following “property” at the end of the first sentence and “owned and” preceding “used” and “by a railroad” thereafter in the second sentence.

    —1985 (Adj. Sess.). Subdiv. (7): Act No. 207 substituted “chapter 28 of Title 23” for “chapter 217 of this title”.

    Subdiv. (14): Amended generally by Act No. 168.

    Subdiv. (29): Added by Act No. 135.

    Subdiv. (30): Added by Act No. 135.

    —1985. Subdiv. (8): Deleted “cigarettes and other” preceding “tobacco products” and inserted “excluding cigarettes” thereafter.

    —1981 (Adj. Sess.). Subdiv. (7): Deleted “and railroad fuel” following “jet fuel”.

    —1981. Subdiv. (7): Act No. 87 added proviso following “title”.

    Subdiv. (28): Added by Act No. 13.

    —1979 (Adj. Sess.). Subdiv. (15): Amended generally.

    —1977 (Adj. Sess.). Subdiv. (2): Substituted “medical and dental devices” for “surgical devices” following “beds” and inserted “medical and dental equipment (including component parts thereof) and supplies used in treatment” preceding “intended”.

    —1977. Act No. 62 added subdivs. (26) and (27).

    Act No. 86 inserted “except for isolated or occasional uses” following “exclusively” in the first sentence and added the second sentence of subdivs. (14), (24), and (25), and deleted “or tangible personal property which becomes an ingredient or component part of, or is consumed or destroyed or loses its identity directly and exclusively in the manufacture of tangible personal property for sale, not including fuel or electricity” following “distributor” in subdiv. (16).

    —1975 (Adj. Sess.). Subdiv. (21): Amended generally by Act No. 156.

    Subdiv. (23): Repealed by Act No. 243.

    —1973 (Adj. Sess.). Subdiv. (14): Rewrote the first sentence and added the second sentence.

    Subdiv. (16): Amended generally.

    Subdivs. (24) and (25): Added.

    —1969 (Adj. Sess.). Subdiv. (3): Added “baler twine” following “fertilizers” and “veterinary supplies” preceding “and bedding”.

    Subdiv. (12): Added “which are listed in 32 V.S.A. § 9010 ” following “therefrom”.

    Subdivs. (17-23): Added.

    Retroactive applicability of amendment. 2019, No. 150 (Adj. Sess.), § 7(b) provides: “Secs. 5 and 6 shall take effect on July 1, 2020, provided that if the date of passage of this act is after July 1, 2020, then notwithstanding 1 V.S.A. § 214 , Secs. 5 and 6 shall take effect on passage and shall apply retroactively to July 1, 2020.”

    Effective date of amendments—

    2019 (Adj. Sess.). 2019, No. 164 (Adj. Sess.), § 33(d) provided that § 16 [which added subdiv. (55)] shall take effect March 1, 2022.

    Effective date of 2013 (Adj. Sess.) amendment. 2013, No. 99 (Adj. Sess.), § 10(e) provides: “Secs. 6 (application form) [which amended 30 V.S.A. § 8007 ], 7 (Vermont village green renewable project) [which amended 30 V.S.A. § 8104 ], 8 (alternate energy sources) [which amended 32 V.S.A. § 3845 ], and 9 (tangible personal property) [which amended subdiv. (46) of this section] shall take effect on January 1, 2017.”

    Retroactive effective date of amendment to subdivision (48). 2011, No. 143 (Adj. Sess.), § 63(7) provides that § 49 of that act shall take effective retroactively on May 24, 2011.

    Retroactive effective date of amendment to subdiv. (14). 2011, No. 143 (Adj. Sess.), § 63(8) provides that § 54a of that act shall take effective retroactively on January 1, 2012.

    Effective date of amendments—

    2007 (Adj. Sess.). 2007, No. 81 (Adj. Sess.), § 7b as amended by 2007, No. 190 (Adj. Sess.), § 43 provides that the amendment to this section by § 7a [which amended subdiv. (29) by substituting “such aircraft ” for “any aircraft ”] of the act, shall take effect July 1, 2018. Pursuant to 2017, No. 69 , § I.1(1), the amendment and the effective date of subdiv. (29) have been repealed.

    Effective date of amendments—2003 (Adj. Sess.). 2003, No. 152 (Adj. Sess.), § 23(5), eff. June 7, 2004, provided that the amendment to this section, by § 17 of that act, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreements, but no earlier than July 1, 2005.

    Applicability of 2002 amendment. 2001, No. 138 (Adj. Sess.), § 8(1) provided that that act [which added subdiv. 47 of this section] shall apply to taxable years beginning on or after January 1, 2002, and to purchases on or after July 1, 2002.

    Effective date of subdiv. (45). 2001, No. 144 (Adj. Sess.), § 42(3), provided that subdiv. (45) shall take effect January 1, 2003.

    1999 amendment. 1999, No. 49 , § 38(m) provides that the amendment to this section by § 34 of that act and as amended by 2003, No. 68 , § 67 (sales tax exemption for clothing) shall apply to sales and uses on and after December 1, 1999, and the amendment to this section by § 34a of that act (sales tax exemption for clothing and footwear) shall apply to sales and uses on and after July 1, 2001.

    1999, No. 49 , § 99(f) provides that the amendment to this section by § 74 of that act (sales tax exemption for renewable energy systems) shall apply to purchases and uses on or after July 1, 1999.

    1997 amendment. 1997, No. 60 , § 100(k)(3), eff. June 26, 1997, provided that the amendment to this section by § 72a of that act shall apply to sales and uses on and after July 1, 1997.

    1997, No. 60 , § 100(k)(7), eff. June 26, 1997, provided that the amendment to this section by § 79 of that act shall apply to services that are provided on or after September 1, 1997, and are billed in the regular course of the provider’s business on or after October 1, 1997.

    Effective date of amendments—

    1997 (Adj. Sess.). 1997, No. 156 (Adj. Sess.), § 59, provides that the amendment to this section by § 21 of the act (sales tax exemption for recycled construction waste materials) shall apply to sales on and after July 1, 1998.

    1993 amendment. 1993, No. 89 , § 27(c)(2), provided in part that the amendments to this section by §§ 14c and 14d of that act shall apply to purchases and uses of fuel used in manufacturing on or after July 1, 1996.

    Effective date of amendments—

    1981, No. 13 amendment; tax rebate. 1981, No. 13 , § 2, provided: “This act [which added subdiv. (28) to this section] shall take effect from passage [March 27, 1981] and apply to sales and use taxes for sale and rental of films for the assessment period beginning January 1, 1973 and thereafter. Any taxpayer so assessed for such taxes shall be entitled to a rebate of any such taxes, penalties, interest, and late fees paid upon application to the commissioner of taxes.”

    Repeal of current EATI provisions. 2005, No. 184 (Adj. Sess.), § 4(a) provided that, as of January 1, 2007, no new credits or incentives may be granted under subdivs. (39)(i) and (47) and, as of January 1, 2017, the provisions of subdivs. (39)(i) and (47) are repealed.

    Prospective repeal of subdiv. (52). 2017, No. 194 (Adj. Sess.), § 26b(a) as amended by 2019, No. 83 , § 14(a), provides that subdiv. (52) [sales tax exemption for advanced wood boilers] of this section shall be repealed on July 1, 2023.

    Prospective repeal of transfer from Clean Energy Development Fund. 2017, No. 194 (Adj. Sess.), § 26b(b) provides that the transfer from CEDF to the General Fund shall be repealed on July 1, 2021.

    ANNOTATIONS

    Advertising space.

    Sale of advertising space within a publication is not a sale of tangible personal property exempt under subdiv. (14) of this section. Bodenstein v. Department of Taxes, 147 Vt. 67, 510 A.2d 1314, 1986 Vt. LEXIS 371 (1986).

    Appeal.

    Taxpayer’s challenge to the three-year rule for determining whether a sales tax exemption for shipping materials applied was not considered on appeal because it had no effect on the case, as the taxpayer’s freezer tubs had a life expectancy of more than three years. C&S Wholesale Grocers, Inc. v. Dep't of Taxes, 2016 VT 77, 2016 VT 77A, 203 Vt. 183, 155 A.3d 169, 2016 Vt. LEXIS 105 (2016).

    Components of manufacturing process.

    Statutory language taken as a whole supported the application of the use tax to raw materials purchased outside Vermont, assembled into building components at an out-of-state factory, and then brought into Vermont to construct prefabricated buildings. Morton Buildings, Inc. v. Department of Taxes, 167 Vt. 371, 705 A.2d 1384, 1997 Vt. LEXIS 289 (1997).

    Liquid oxygen, drilling rods and bits, and explosives consumed by rock quarry company in the process of extracting granite from quarry were not exempt under provision of this section exempting from the sales and use tax 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. Rock of Ages Corp. v. Commissioner of Taxes, 134 Vt. 356, 360 A.2d 63, 1975 Vt. LEXIS 338 (1975).

    Perforated tapes used in newspaper production process, which first extracted news from wire service and then, by use of photon unit, emerged in a photographic state, and eventually activated the press, were exempt from Vermont compensating use tax because the tape easily came within even a narrow construction of word “manufacture” in this section’s exemption for any tangible personal property that is consumed, destroyed, or loses its identity in the manufacturing process. McClure Newspapers, Inc. v. Department of Taxes, 132 Vt. 169, 315 A.2d 452, 1974 Vt. LEXIS 318 (1974).

    Flashbulbs and photographic films used in production of newspaper were exempt from compensating use tax under provision of this section exempting certain property consumed in manufacturing process. McClure Newspapers, Inc. v. Department of Taxes, 132 Vt. 169, 315 A.2d 452, 1974 Vt. LEXIS 318 (1974).

    Films.

    Films rented by theater owner were not resold to theater patrons, thereby making them exempt from use tax under provision exempting items purchased for resale, upon payment of admission to theater by patrons; all that was sold the theater patrons was the right to see the image produced by the film. In re Merrill Theatre Corp. Sales & Use Tax, 138 Vt. 397, 415 A.2d 1327, 1980 Vt. LEXIS 1252 (1980).

    Film projected by theater owner was not exempt from use tax under exception for tangible personal property that becomes a part of, or is consumed or destroyed or loses its identity in manufacture of tangible personal property for sale. In re Merrill Theatre Corp. Sales & Use Tax, 138 Vt. 397, 415 A.2d 1327, 1980 Vt. LEXIS 1252 (1980).

    Motor fuels.

    Although not delineated as such, concluding sentence of subsec. (a) of § 8801 of this title, excepting “diesel oil” from the tax imposed upon “gasoline or other motor fuel,” exempts diesel fuel, whether used on a highway or on a railroad, from the otherwise broad sweep of the phrase “other motor fuel” in the first sentence of subsec. (a) of § 8801, and since sales exempted from the motor fuel tax are also exempted from the sales and use tax, pursuant to this section, with certain exceptions, diesel fuel purchases for use on a railroad are exempt from the sales and use tax. Central Vermont Railway v. Department of Taxes, 144 Vt. 601, 480 A.2d 419, 1984 Vt. LEXIS 519 (1984) (Decided under sections prior to 1982 amendments.).

    Newspapers.

    Commissioner of Taxes did not err in finding that coupon books inserted into a newspaper were not component parts of the newspaper for sales and use tax exemption purposes based on her findings that the coupon books differed in size, format, and distribution from the newspaper, that they were separately prepared and printed, that they consisted solely of advertising with no content, that they did not typically command their own following, and they were not separately indexed sections of the paper. None of these findings appeared erroneous, so case law urged deference to the Commissioner’s determination. World Publ'ns., Inc. v. Vermont Dep't of Taxes, 2012 VT 78, 192 Vt. 547, 60 A.3d 942, 2012 Vt. LEXIS 89 (2012).

    Application of the exemption for sales of newspapers in its entirety compels the conclusion that the Legislature intended that the Commissioner first determine whether a publication is a “newspaper” in its format and, if so, whether 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. In re Picket Fence Review, 173 Vt. 369, 795 A.2d 1242, 2002 Vt. LEXIS 51 (2002).

    For purposes of the exemption from use tax for sales of newspapers, the distinction between newspapers and other periodicals is neither arbitrary nor capricious, because the State has a legitimate interest in encouraging the inexpensive and wide dissemination of newspapers in order for its citizens to be informed of current affairs and in removing the collection burden where the tax amounts are de minimus. In re Picket Fence Review, 173 Vt. 369, 795 A.2d 1242, 2002 Vt. LEXIS 51 (2002).

    Where the Commissioner based his determination of whether taxpayer was exempt as a newspaper from use tax on the format and frequency of the publication, not on its content, it was not necessary to address taxpayer’s assertion that provision of subdiv. (15) of this section contains constitutionally impermissible content-based criteria. In re Picket Fence Review, 173 Vt. 369, 795 A.2d 1242, 2002 Vt. LEXIS 51 (2002).

    Preprinted advertisements inserted into newspapers for distribution were not component parts of the newspapers into which they were inserted and therefore were not exempt from taxation under subdiv. (15) of this section, since they were finished products at the time they arrived at the newspapers, were not printed solely for distribution in newspapers, were not regular features, and were not indexed as special section of the newspapers. Hannaford Brothers Co. v. Vermont Dep't of Taxes, 150 Vt. 6, 547 A.2d 1353, 1988 Vt. LEXIS 91 (1988).

    Goods used in the publication of newspaper that was not shown to have been sold, except in isolated instances, were not exempt from use tax under exemption for 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. Hadwen, Inc. v. Department of Taxes, 139 Vt. 37, 422 A.2d 255, 1980 Vt. LEXIS 1391 (1980), app. dismissed, 451 U.S. 977, 101 S. Ct. 2300, 68 L. Ed. 2d 834, 1981 U.S. LEXIS 2016 (1981).

    Where there was a use tax exemption for 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, that the exemption did not apply to ink, newsprint, and other supplies used by newspaper not shown to have been sold, except in isolated instances, was not an unconstitutional denial of equal protection. Hadwen, Inc. v. Department of Taxes, 139 Vt. 37, 422 A.2d 255, 1980 Vt. LEXIS 1391 (1980), app. dismissed, 451 U.S. 977, 101 S. Ct. 2300, 68 L. Ed. 2d 834, 1981 U.S. LEXIS 2016 (1981).

    Packaging materials.

    Narrowly construing the packaging exemption from sales tax, as the Court must, the exemption is thus limited to components of the parcel being shipped. C&S Wholesale Grocers, Inc. v. Dep't of Taxes, 2016 VT 77, 2016 VT 77A, 203 Vt. 183, 155 A.3d 169, 2016 Vt. LEXIS 105 (2016).

    “Reefer fuel,” which was the diesel fuel used to power the refrigeration systems mounted on the taxpayer’s tractor trailers, was also not exempt from sales tax, as it was not a component of the parcel to be shipped, but a component used in shipping, one that came to rest with the taxpayer in the stream of commerce. C&S Wholesale Grocers, Inc. v. Dep't of Taxes, 2016 VT 77, 2016 VT 77A, 203 Vt. 183, 155 A.3d 169, 2016 Vt. LEXIS 105 (2016).

    Because the packaging exemption from sales tax was limited to components of the parcel being shipped, the taxpayer’s “freezer tubs,” which were packed with dry ice and loaded into refrigerated tractor-trailers, did not fall within the scope of the exemption, as they were not a component of the parcel to be shipped but a component used in shipping and then reused by the taxpayer. C&S Wholesale Grocers, Inc. v. Dep't of Taxes, 2016 VT 77, 2016 VT 77A, 203 Vt. 183, 155 A.3d 169, 2016 Vt. LEXIS 105 (2016).

    It is not the purpose of the packaging exemption from sales tax that certain materials used in packing, packaging, or shipping be exempt from tax altogether. For this reason, returnable and reusable packaging materials that have come to rest in the stream of commerce should be taxed to the distributor or manufacturer, lest they avoid taxation altogether, whereas packing, packaging, and shipping materials that will continue down the stream of commerce are not taxed to the manufacturer or transporter and are instead taxed where they come to rest in the stream of commerce as part of the taxable base of the product. C&S Wholesale Grocers, Inc. v. Dep't of Taxes, 2016 VT 77, 2016 VT 77A, 203 Vt. 183, 155 A.3d 169, 2016 Vt. LEXIS 105 (2016).

    Freezer tubs were not within the scope of the sales tax exemption, even though they were “containers,” as they were not a component of the parcel to be shipped and there was no risk of double taxation upon imposing tax on the distributor who used them in shipping. C&S Wholesale Grocers, Inc. v. Dep't of Taxes, 2016 VT 77, 2016 VT 77A, 203 Vt. 183, 155 A.3d 169, 2016 Vt. LEXIS 105 (2016).

    Legislature, in providing the exemption for manufacturers contained in subdiv. (16) of this section, intended it to be available only to those taxpayers whose business is exclusively, or at least primarily, dedicated to manufacturing, and the exemption should not be construed so as to bring incidental manufacturing activity within its scope. Wetterau, Inc. v. Department of Taxes, 141 Vt. 324, 449 A.2d 896, 1982 Vt. LEXIS 527 (1982).

    Wrapping and packaging supplies sold by corporation to retail grocers were not exempt under subdiv. (16) of this section, the exemption for packaging used by manufacturers and distributors; the express words of limitation, “manufacturer or distributor,” must be deemed to have been selected advisedly, and if the Legislature had intended to include retailers within exemption it could have accomplished that by using “retailer” in lieu of “manufacturer or distributor.” Wetterau, Inc. v. Department of Taxes, 141 Vt. 324, 449 A.2d 896, 1982 Vt. LEXIS 527 (1982).

    Wrapping and packaging supplies sold by corporation to retail grocers were not exempt from sales and use tax under subdiv. (16) of this section, the exemption for packaging materials for use by manufacturers, since the grocers’ operations in cutting meat, poultry, and fish into smaller pieces were not manufacturing and, if those activities were to be considered equivalent to manufacturing, the corporation failed to meet its burden of establishing that those activities constituted a primary part of the business of any of the retail grocers. Wetterau, Inc. v. Department of Taxes, 141 Vt. 324, 449 A.2d 896, 1982 Vt. LEXIS 527 (1982).

    Wrapping and packaging supplies sold by corporation to retail grocers were not exempt from sales tax and under subdiv. (16) of this section, the exemption for packaging used by distributors, since the exemption was not within the necessary scope of this section, a regulation of the Department of Taxes excluded retail sellers from the definition of distributors, and the sales tax was designed to be imposed under subdiv. (1) of § 9771 of this title on the ultimate user and retail grocers were clearly the ultimate users of wrapping and packaging materials. Wetterau, Inc. v. Department of Taxes, 141 Vt. 324, 449 A.2d 896, 1982 Vt. LEXIS 527 (1982).

    Where corporation appealed from deficiency assessment that included a compensating use tax on packaging materials purchased by the corporation outside the State, and used by it to package business forms fabricated and sold by it to various customers, who consume the forms in the course of their business, exemption provision of this section relating to packaging materials did not apply, because the materials, although used to package and ship business forms, were not used to package or ship them for resale; however, a contrary result was dictated by a 1973 amendment of this section, as to sales after its effective date. Standard Register Co. v. Commissioner of Taxes, 135 Vt. 271, 376 A.2d 41, 1977 Vt. LEXIS 606 (1977).

    —Generally.

    Fuel is subject to sales and use taxation without limitation regardless of whether the fuel source could also be characterized as a raw material or consumable. Burlington Electric Dept. v. Department of Taxes, 154 Vt. 332, 576 A.2d 450, 1990 Vt. LEXIS 58 (1990).

    Fuel used by a manufacturer is not exempt from sales and use taxation. Burlington Electric Dept. v. Department of Taxes, 154 Vt. 332, 576 A.2d 450, 1990 Vt. LEXIS 58 (1990).

    Imposition of sales and use tax on wood chips burned to produce electricity at an electric generating plant did not unfairly discriminate against manufacturers who burned their raw materials, since the sales and use tax focused on retail sales, and manufacturers who burned wood chips represented the ultimate users of wood chips as fuel. Burlington Electric Dept. v. Department of Taxes, 154 Vt. 332, 576 A.2d 450, 1990 Vt. LEXIS 58 (1990).

    Wood chips burned to produce electricity at electric generating plant were subject to sales and use taxation regardless of whether they served as a raw material or consumable in the production of electricity. Burlington Electric Dept. v. Department of Taxes, 154 Vt. 332, 576 A.2d 450, 1990 Vt. LEXIS 58 (1990).

    Notes to Opinions

    Constructive equipment.

    The purchase, in Vermont, of a rubberized motor-driven bucket loader, by a contractor who will use it part-time for highway construction and part-time for other construction activities, and who will take delivery in Vermont but use it on a job outside the state and for that reason will not register it under the Vermont motor vehicle laws, is subject to the tax imposed by this chapter. 1972-74 Vt. Op. Att'y Gen. 251.

    § 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.

    HISTORY: 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.

    History

    Revision note

    —2008. In subdiv. (8), substituted “subdivision 9771(3)” for “section 9771(3)” to conform reference to V.S.A. style.

    Amendments

    —1997. Subdiv. (10): Added.

    —1983 (Adj. Sess.). Subdiv. (9): Added.

    —1977. Subdiv. (1): Repealed.

    —1971. Subdiv. (8): Added.

    1997 amendment. 1997, No. 60 , § 100(k)(7), eff. June 26, 1997, provided that the amendment to this section, by § 80 of the act, shall apply to services that are provided on or after September 1, 1997, and are billed in the regular course of the provider’s business on or after October 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:
      1. 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.
      2. 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.
      3. 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.
      4. 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. Sales of building materials and supplies to be used in the construction, reconstruction, alteration, remodeling, or repair of: (A) 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; (B) 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 (C) 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. In this subdivision, the words “building materials and supplies” shall 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 subsection 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.

    HISTORY: 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. 1 60 (Adj. Sess.), § 41; 2011, No. 45 , § 36.

    History

    Amendments

    —2011. Subdiv. (7): Substituted “subdivision (3)” for “subdivisions (3) and (5)” and “$100,000.00” for “$50,000.00”.

    —2009 (Adj. Sess.) Substituted “admission to a place of entertainment” for “amusement” in the introductory paragraph, “entertainment” for “amusement”, and deleted “a performance jointly produced or presented by it and another person shall not be exempt from amusement tax unless it meets the joint production requirements imposed on a qualified organization under subdivision (3)(B) of this section and” preceding “sales of alcoholic” in subdiv. (1), rewrote subdiv. (3)(B), substituted “entertainment” for “amusement” in subdiv. (3)(C), deleted “a ‘development corporation’ as defined in subdivision 202(4) of Title 10 and” following “structure owned by” in subdiv. (4), substituted “entertainment” for “amusement” in subdiv. (5), and added subdivs. (6) and (7).

    —2009. Subdiv. (1): Added “and sales of alcoholic beverages shall not be exempt from sales tax” after “section” at the end.

    —1997. Subdiv. (3)(D): Added.

    —1995 (Adj. Sess.) Subdiv. (3)(C): Inserted “501(c)(3)” following “qualified” and substituted “$20,000” for “$5,000”.

    —1995. Subdiv. (1): Added “or when it charges admission to any amusement; except that a performance jointly produced or presented by it and another person shall not be exempt from amusement tax unless it meets the joint production requirements imposed on a qualified organization under subdivision (3)(B) of this section” following “private persons”.

    Subdiv. (3): Amended generally.

    Subdiv. (5): Added the third sentence.

    —1989 (Adj. Sess.). Subdiv. (5): Inserted “other than organizations which qualify for exempt status under the provisions of section 501(c)(4) of the United States Internal Revenue Code whose bylaws provide for the contribution of their net income to organizations which qualify for exempt status under the provisions of section 501(c)(3) of the United States Internal Revenue Code” following “redesignated” in the first sentence.

    —1983 (Adj. Sess.). Subdiv. (5): Added “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 which, in the aggregate, are not held on more than four days in such year, and which are open to the general public” following “charges as defined in section 9701” at the end of the first sentence and added the second sentence.

    —1983. Subdiv. (5): Added.

    —1973 (Adj. Sess.). Subdiv. (3): Amended generally.

    Subdiv. (4): Amended generally.

    —1971. Subdiv. (4): Inserted “and (c) ‘development corporation’ as defined in 10 V.S.A. section 202(4) of Title 10 and any ‘local development corporation’ as defined in section 222(4) of Title 10, and used exclusively for the purposes authorized in chapter 11A of Title 10” preceding “provided, however” in the first sentence.

    Applicability of 2009 (Adj. Sess.) amendment. 2009, No. 160 (Adj. Sess.), § 62(12) provided that “Secs. 38 [which amended 32 V.S.A. § 9701(11) ] and 39 (changing the term “amusement” to “entertainment”) and in Sec. 41, the lead-in paragraph and subdivisions (1), (3), (5), and (7) of 32 V.S.A. § 9743 (entertainment sales and use tax) shall take effect on April 1, 2011, and shall apply to charges for admission to a place of entertainment on or after April 1, 2011.”

    Applicability—1997 amendment. 1997, No. 50 , § 48(e), eff. June 26, 1997, provided that the amendment to this section by § 35 of the act shall apply to sales on or after January 1, 1998.

    —1995 (Adj. Sess.) amendment. 1995, No. 132 (Adj. Sess.), § 2, eff. April 30, 1996, provided that the amendment to this section by section 1 of this act would apply retroactively to sales on and after July 1, 1995.

    —1989 (Adj. Sess.) amendment. 1989, No. 222 (Adj. Sess.), § 44(4), provided that the amendment to subdiv. (5) of this section by section 31 of the act would apply retroactively to Aug. 9, 1983.

    ANNOTATIONS

    Building materials.

    Construction company and its wholly owned subsidiaries, which financed, constructed, and owned buildings constructed for and then deeded to housing authorities, and not the authorities, owned the building materials; thus the materials were not exempt from sales tax under provision of this section exempting building materials used in construction of buildings owned or held in trust for a governmental body exclusively for public purposes. Pizzagalli v. Department of Taxes, 132 Vt. 496, 321 A.2d 437, 1974 Vt. LEXIS 376 (1974).

    A contract to convey property, whether or not specifically enforceable, does not create a trust whereby vendor holds in trust for vendee; and building materials were not held by constructor in trust for housing authorities who were to purchase furnished buildings, within meaning of this section’s sales tax exemption for property held in trust for the benefit of a governmental agency and used exclusively for public purposes. Pizzagalli v. Department of Taxes, 132 Vt. 496, 321 A.2d 437, 1974 Vt. LEXIS 376 (1974).

    Construction.

    In construing this section, the plain, ordinary meaning of language is presumed to be intended, and when the meaning is plain the courts must enforce this section according to its terms. In re Middlebury College Sales & Use Tax, 137 Vt. 28, 400 A.2d 965, 1979 Vt. LEXIS 942 (1979).

    Educational institutions.

    Within statute’s exemption of college from sales and use tax, but not exempting it as to uses in activities that are “mainly commercial enterprises,” college ski area and golf course used for training, practice, and athletic meets by its own students were exempt to that extent; but use was commercial to extent students from other schools, and the public at large, could use the facilities for a fee, and whether the facilities were mainly commercial depended on proportion of commercial to noncommercial use, and college was not entitled to an exemption where it did not meet its burden of proving that facilities were used mainly for noncommercial uses. In re Middlebury College Sales & Use Tax, 137 Vt. 28, 400 A.2d 965, 1979 Vt. LEXIS 942 (1979).

    Tennis clubs.

    Annual membership dues and guest fees charged by a tennis club were taxable amusement charges, and the club was not exempt under subdiv. (5) of this section. Brattleboro Tennis Club, Inc. v. Department of Taxes, 166 Vt. 604, 691 A.2d 1062, 1997 Vt. LEXIS 21 (1997) (mem.).

    Notes to Opinions

    Public service companies.

    Purchases of tangible personal property, including rental of equipment, by electrical public service corporation, are not exempt from the State sales and use tax when the job for which the items were purchased is performed at the order of the State highway department in connection with the removal of the corporation’s power transmission lines and equipment because of the construction of new roads; however, the State may, pursuant to contract, reimburse the corporation for taxes paid on such purchases. 1970-72 Vt. Op. Att'y Gen. 453.

    § 9744. Property exempt from use tax.

    1. 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;
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2013. Subdiv. (a)(2): Inserted “and used outside the State” following “purchased”.

    —2001 (Adj. Sess.) Subdiv. (a)(5): Added.

    —1995 (Adj. Sess.) Subdiv. (a)(2): Deleted “and except in the case of vessels as defined in section 3302(5) of Title 23, used in the waters of this state for at least 30 days” following “located in the state”.

    —1987 (Adj. Sess.). Subdiv. (a)(2): Added “and except in the case of vessels as defined in section 3302(5) of Title 23, used in the waters of this state for at least 30 days” following “located in the state”.

    —1985. Subdiv. (a)(4): Added.

    2001 (Adj. Sess.) 2001, No. 144 (Adj. Sess.), § 42(4) provides that the amendment to this section by § 13 of that act shall apply to building materials and supplies not stored in this State before July 1, 2004.

    1985 amendment. 1985, No. 88 , § 8(b), provided that subdiv. (a)(4) of this section would apply retroactively to June 1, 1969.

    ANNOTATIONS

    Resident.

    One who is “not a nonresident” is a “resident” for purposes of compensating use tax. In re R. S. Audley, Inc., 151 Vt. 513, 562 A.2d 1046, 1989 Vt. LEXIS 87 (1989).

    Foreign corporation working as general contractor in bridge and highway construction in New England and using equipment in Vermont in excess of six cumulative months over course of one to three years was resident of State for purposes of compensating use tax. In re R. S. Audley, Inc., 151 Vt. 513, 562 A.2d 1046, 1989 Vt. LEXIS 87 (1989).

    Cited.

    Cited in Frank W. Whitcomb Construction Corp. v. Commissioner of Taxes, 144 Vt. 466, 479 A.2d 164, 1984 Vt. LEXIS 506 (1984); Williams v. Vermont, 472 U.S. 14, 105 S. Ct. 2465, 86 L. Ed. 2d 11, 1985 U.S. LEXIS 90 (1985); Morton Buildings, Inc. v. Department of Taxes, 167 Vt. 371, 705 A.2d 1384, 1997 Vt. LEXIS 289 (1997).

    § 9745. Certificate or affidavit of exemption; direct payment permit.

    1. 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.
    2. 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.

    HISTORY: 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.

    History

    Amendments

    —2013 (Adj. Sess.). Section heading: Inserted “; direct payment permit” at the end.

    Subsec. (a): Inserted “Certificate or affidavit of exemption” at the beginning.

    Subsec. (b): Inserted “Direct payment permit” at the beginning, “through the issuance of a direct payment permit” at the end of the first sentence, substituted “Any” for “The Commissioner shall authorize any” at the beginning of the second sentence and “may apply for a direct payment permit” following “real property of others,” in the middle of the second sentence.

    —2003. Section amended generally.

    Effective date of 2003 amendment. 2003, No. 68 , § 87(17) provided that §§ 51-67 of that act [§ 59 amended this section], relating to streamlined sales tax provisions, including provisions relating to alcoholic beverages, clothing, and $20.00 telecommunications credit, and provisions relating to local option taxation of telecommunications and exemption of clothing, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreement, but no earlier than January 1, 2005.

    ANNOTATIONS

    Cited.

    Cited in Vermont Structural Steel v. Department of Taxes, 153 Vt. 67, 569 A.2d 1066, 1989 Vt. LEXIS 240 (1989).

    § 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.

    HISTORY: Added 1973, No. 270 (Adj. Sess.), § 7; amended 2001, No. 140 (Adj. Sess.), § 36, eff. June 21, 2002.

    History

    Revision note—

    Section was enacted without a section heading, which was added.

    Reference to “§ 9745” was changed to “section 9745 of this title” and “ 32 V.S.A. § 9741(25) ” was changed to “section 9741(25) of this title” to conform to V.S.A. style.

    Amendments

    —2001 (Adj. Sess.) Substituted “subdivisions 9741(3) and (25)” for “section 9741(25)” preceding “of this title” at the end of the section.

    § 9746. Snowmobile, motorboat, and vessel sales.

    1. If a person sells a snowmobile, 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.
    2. If a person receives payment under a contract of insurance for:
      1. total destruction of a snowmobile, 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, motorboat, or vessel; and within three months of 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.
    3. 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 his or her name and address, a certificate of sale or payment of insurance proceeds with regard to the first vehicle or vessel.

    HISTORY: 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.

    History

    Amendments

    —2005 (Adj. Sess.). Substituted “‘sales price”’ for “‘receipt”’ following “vessel” in subsec. (a) and subdiv. (b)(2), and for “receipts” following “determining” in subsec. (c).

    —1995. Section amended generally.

    —1993. Rewrote the introductory paragraph.

    Subdiv. (1): Substituted “the” for “a” following “the sale of” and “such owner of another” for “the purchaser of a” following “purchase by”.

    Subdiv. (2): Substituted “owner” for “purchaser” following “received by” in the introductory paragraph, “the” for “a” following “damages to”, “a” for “the purchaser’s” following “accepted by” and “a” for “the” following “trade-in on” in subdiv. (A), and “the” for “a” following “destruction of” in subdiv. (B) and added “of another snowmobile, motorboat, or vessel” at the end of that subdivision.

    Applicability of 2005 (Adj. Sess.) amendment. 2005, No. 94 (Adj. Sess.), § 10(4) provides that § 9 of that act “shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreement.”

    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.

    HISTORY: 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.

    History

    Revision note—

    Redesignated subdiv. (6) as added by 1997, No. 109 (Adj. Sess.), as subdiv. (7), to avoid conflict with subdiv. (6) as added by 1997, No. 156 (Adj. Sess.).

    Amendments

    —2017. Subdiv. (4): Substituted “entertainment” for “amusement” following “places of”.

    —2015 (Adj. Sess.). Subdiv. (1): Amended generally.

    —2013 (Adj. Sess.). Subdiv. (1): Inserted “, including property used to improve, alter or repair the real property of others by a manufacturer or any person who is primarily engaged in the business of making retail sales of tangible personal property” at the end.

    —2011 (Adj. Sess.). Subdiv. (8): Added “regardless of whether for permanent use or less than permanent use and regardless of whether or not conditioned upon continued payment from the purchaser”.

    —2009. Inserted “but in no case shall any one transaction be taxed under more than one of” after “for” in the second sentence of the first undesignated paragraph and added subdiv. (8).

    —2005. Subdiv. (5): Added “except coin-operated telephone service, paging service, private communications service, or value-added non-voice data service”.

    Subdiv. (6): Amended generally.

    —2003 (Adj. Sess.). Act No. 152, § 12, added “in this state” following “sales” in the first sentence of the introductory paragraph; deleted “sold at retail in this state” following “property” in subdiv. (1), and added “and access to any game or gaming or amusement machine, apparatus or device, excluding video game, pinball, musical, vocal or visual entertainment machines which are operated by coin, token or bills” in subdiv. (4).

    Act No. 152, § 18 , deleted “provided to a Vermont service address” following “service” in subdiv. (5).

    —2003. Section amended generally.

    —1999. Subdiv. (7): Repealed.

    —1997 (Adj. Sess.). Subdiv. (6): Added by Act No. 156.

    Subdiv. (7): Added by Act No. 109.

    —1997 (Adj. Sess.). Subdiv. (7): Added by Act No. 109.

    —1997. Subdiv. (2): Deleted “telephone” following “excluding water”.

    Subdiv. (5): Added.

    —1993 (Sp. Sess.). Substituted “five percent” for “four percent” following “tax of” in the introductory paragraph.

    —1991. Substituted “five” for “four” preceding “percent” in the introductory paragraph.

    —1981 (Adj. Sess.). Deleted “on and after June 1, 1969” preceding “except” and increased sales tax from “three” to “four” percent in the introductory paragraph.

    Dedicated use of sales and use tax on cannabis. 2019, No. 164 (Adj. Sess.), § 17c provides: “Notwithstanding 16 V.S.A. § 4025(b) , revenue from the sales and use tax imposed by 32 V.S.A. chapter 233 on retail sales of cannabis or cannabis products in this State shall be used to fund a grant program to start or expand afterschool and summer learning programs, with a focus on increasing access in underserved areas of the State.”

    Prewritten software accessed remotely. 2015, No. 51 , § G.8 provides: “Charges for the right to access remotely prewritten software shall not be considered charges for tangible personal property under 32 V.S.A. § 9701(7) .”

    Effective date of amendments—

    2005, No. 75 , § 23. Act No. 75, § 23 amended subsecs. (5) and (6). § 25 exempted telecommunications nonrecurring charges from sales and use tax beginning July 1, 2005.

    Effective date of amendments—

    2003, No. 152 (Adj. Sess.), § 18. 2003, No. 152 (Adj. Sess.), § 23(5), eff. June 7, 2004, provided that the amendment to this section, by § 18 of that act, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreements, but no earlier than July 1, 2005.

    Effective date of 2003 amendment by Act 68, Sec. 60. 2003, No. 68 , § 87(17) provides that §§ 51-67 [§ 60 amends this section], relating to streamlined sales tax provisions, including provisions relating to alcoholic beverages, clothing, and $20.00 telecommunications credit, and provisions relating to local option taxation of telecommunications and exemption of clothing, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreement, but no earlier than January 1, 2005.

    Applicability of 2003 amendment by Act 68, Sec. 31. 2003, No. 68 , § 87(6) provides that §§ 31-34 [§ 31 amends this section], relating to the sales and use tax rate of six percent and taxation of telecommunications at the six percent rate, shall apply to sales and uses on and after October 1, 2003.

    Applicability of amendment to subdiv. (7). 1999, No. 49 , § 71 provided that subdiv. (7) (sales tax on service contracts) shall not apply after April 27, 1998 to service contracts that are not regulated under subchapter 4 of chapter 113 of Title 8, and is repealed effective July 1, 1999 for all other contracts.

    Effective date of amendments—

    1997 (Adj. Sess.). 1997, No. 156 (Adj. Sess.), § 59, provides that the amendment to this section by § 30 of the act (taxation of prepaid calling cards) shall apply to sales on and after July 1, 1998.

    1997 amendments. 1997, No. 60 , § 100(k)(7), eff. June 26, 1997, provided that the amendment to this section by §§ 81 and 82 of that act shall apply to services that are provided on or after September 1, 1997, and are billed in the regular course of the provider’s business on or after October 1, 1997.

    ANNOTATIONS

    Dues and guest fees.

    Annual membership dues and guest fees charged by a tennis club were taxable amusement charges, and the club was not exempt under 32 V.S.A. § 9743(5) . Brattleboro Tennis Club, Inc. v. Department of Taxes, 166 Vt. 604, 691 A.2d 1062, 1997 Vt. LEXIS 21 (1997) (mem.).

    Presumptions.

    The true meaning of the Supreme Court’s holding in McClure Newspapers, Inc. v. Vermont Department of Taxes , 132 Vt. 169, 315 A.2d 452 (1974), is that the presumption of taxability under § 9813 of this title, governing presumptions and burden of proof, is only available to the Department of Taxes when it seeks to assess a sales tax imposed under this section. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    On appeal by purchaser of goods against whom the Department of Taxes assessed an alleged sales tax deficiency under § 9777 of this title, governing determination of tax based upon invoices for taxable purchases, which did not state the three percent sales tax, the presumption of taxability under § 9813 of this title, governing presumptions and burden of proof, applied to the receipts involved, since the tax was properly imposed under the authority of this section. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    Receipt.

    The word “receipt” as it appears in this section does not refer to the person who receives the purchasing price, but rather, by definition, it refers to the purchase price itself. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    Tax rate.

    Vermont Department of Taxes did not violate sales tax statute by collecting sales tax on purchases made by credit card, the financing of which was ultimately defaulted on by the lender’s consumers. Citibank (South Dakota), N.A. v. Dep't of Taxes, 2016 VT 69, 202 Vt. 296, 149 A.3d 149, 2016 Vt. LEXIS 69 (2016).

    Ultimate user.

    Wrapping and packaging supplies sold by corporation to retail grocers were not exempt from sales tax under § 9741(16) of this title, the exemption for packaging used by distributors, since the exemption was not within the necessary scope of § 9741, a regulation of the Department of Taxes excluded retail sellers from the definition of distributors, and the sales tax was designed to be imposed under this section on the ultimate user and retail grocers were clearly the ultimate users of wrapping and packaging materials. Wetterau, Inc. v. Department of Taxes, 141 Vt. 324, 449 A.2d 896, 1982 Vt. LEXIS 527 (1982).

    Vendor.

    The sales tax is imposed on the purchaser of goods and services, not on the vendor; the latter is merely the collector of the tax on behalf of the State. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    Cited.

    Cited in Frank W. Whitcomb Construction Corp. v. Commissioner of Taxes, 144 Vt. 466, 479 A.2d 164, 1984 Vt. LEXIS 506 (1984); Central Vermont Railway v. Department of Taxes, 144 Vt. 601, 480 A.2d 419, 1984 Vt. LEXIS 519 (1984); Bodenstein v. Department of Taxes, 147 Vt. 67, 510 A.2d 1314, 1986 Vt. LEXIS 371 (1986); Hannaford Brothers Co. v. Vermont Dep't of Taxes, 150 Vt. 6, 547 A.2d 1353, 1988 Vt. LEXIS 91 (1988); Burlington Electric Dept. v. Department of Taxes, 154 Vt. 332, 576 A.2d 450, 1990 Vt. LEXIS 58 (1990); Mountain Cable Co. v. Department of Taxes, 168 Vt. 454, 721 A.2d 507, 1998 Vt. LEXIS 392 (1998).

    Notes to Opinions

    Modifications and repairs.

    This section’s tax upon the charge for producing, fabricating, printing, or imprinting of tangible personal property for a consideration for consumers who furnish, either directly or indirectly, the materials used, applies to modifications of the materials, but not to repairs of the materials. 1970-72 Vt. Op. Att'y Gen. 292.

    Tax basis.

    The retail cost of a product bought from a steel fabricator is the proper basis for the sales tax, and since this cost includes the charge for labor involved in cutting the material, question whether the charge for labor involved in cutting is taxable when material is bought cut to a specified length was not to the point. 1970-72 Vt. Op. Att'y Gen. 292.

    § 9771a. Repealed. 2013, No. 200 (Adj. Sess.), § 22(2), eff. January 1, 2015.

    History

    Former § 9771a. Former § 9771a, relating to telecommunications services tax limitation, was derived from 1997, No. 60 , § 83 and amended by 1997, No. 156 (Adj. Sess.), § 29; 2003, No. 68 , § 61; and 2013, No. 200 (Adj. Sess.), § 22.

    § 9772. Amount of tax to be collected.

    1. 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.
    2. The Commissioner may adopt transition rules that comply with any applicable multistate agreement in the event of a rate change.

    HISTORY: 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.

    History

    Amendments

    —2009. Subsec. (a): Amended generally.

    —2003 (Adj. Sess.). Subsec. (a): Added the proviso in the second sentence of the introductory paragraph, and added the second sentence of subdiv. (1).

    —2003. Section amended generally.

    Effective date of amendments—

    2003 (Adj. Sess.). 2003, No. 152 (Adj. Sess.), § 23(5), eff. June 7, 2004, provided that the amendment to this section by § 19 of that act, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreements, but no earlier than July 1, 2005.

    Effective date of 2003 amendment by 2003, No. 68 , § 62. 2003, No. 68 , § 87(17), provided that §§ 51-67 [§ 62 of that act amends this section], relating to streamlined sales tax provisions, including provisions relating to alcoholic beverages, clothing, and $20.00 telecommunications credit, and provisions relating to local option taxation of telecommunications and exemption of clothing, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreement, but no earlier than January 1, 2005.

    § 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.

    HISTORY: 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.

    History

    Revision note

    —2008. In subdiv. (3), substituted “subdivision” for “section” preceding “9771(3)” to conform reference to V.S.A. style.

    Amendments

    —2013 (Adj. Sess.). Introductory paragraph: Inserted “or telecommunications service” following “Unless property” at the beginning.

    Subdiv. (5): Added.

    —2009. Deleted “and” from the end of subdiv. (2); added “and” and made a minor punctuation change at the end of subdiv. (3); and added subdiv. (4).

    —2003. Substituted “six” for “five” preceding “percent” in the introductory paragraph.

    —1993 (Sp. Sess.). Substituted “five percent” for “four percent” following “rate of” in the introductory paragraph.

    —1991. Substituted “five” for “four” preceding “percent” in the introductory paragraph.

    —1985. (Adj. Sess.). Subdiv. (2): Amended generally.

    —1981 (Adj. Sess.). Introductory paragraph: Increased use tax from “three” to “four” percent and deleted “on and after June 1, 1969” preceding “except”.

    —1973 (Adj. Sess.). Subdiv. (2): Inserted the phrase “or the use for demonstrational or instructional purposes of tangible personal property” preceding “by the person”.

    1985 (Adj. Sess.) amendment. 1985, No. 165 (Adj. Sess.) § 2, provided that the amendment to subdiv. (2) would have retroactive effect.

    1991 amendment. See note under § 9771 of this title.

    Applicability of 2003 amendment. 2003, No. 68 , § 87(6) provided that §§ 31-34 of that act [§ 33 amends this section], relating to the sales and use tax rate of six percent and taxation of telecommunications at the six percent rate, shall apply to sales and uses on and after October 1, 2003.

    Dedicated use of sales and use tax on cannabis. 2019, No. 164 (Adj. Sess.), § 17c provides: “Notwithstanding 16 V.S.A. § 4025(b) , revenue from the sales and use tax imposed by 32 V.S.A. chapter 233 on retail sales of cannabis or cannabis products in this State shall be used to fund a grant program to start or expand afterschool and summer learning programs, with a focus on increasing access in underserved areas of the State.”

    ANNOTATIONS

    Constitutionality.

    The controlling question in determining whether imposition of a state use tax on an out-of-state taxpayer or collector violates either the Fourteenth Amendment’s Due Process Clause or the Commerce Clause is whether the state has given anything for which it can ask return. Rowe-Genereux, Inc. v. Department of Taxes, 138 Vt. 130, 411 A.2d 1345, 1980 Vt. LEXIS 1038 (1980).

    Vermont could require New Hampshire retailer of carpets and furniture to collect the Vermont use tax on goods sold to Vermonters and delivered to them in Vermont where retailer used its own trucks to deliver the goods, advertised in Vermont based media, and had used Vermont law enforcement personnel and courts to repossess goods; and imposition of the collection obligation did not violate the Due Process Clause or the Commerce Clause. Rowe-Genereux, Inc. v. Department of Taxes, 138 Vt. 130, 411 A.2d 1345, 1980 Vt. LEXIS 1038 (1980).

    Use tax on property a manufacturer manufactures, then uses in Vermont on or after June 1, 1969, does not discriminate against out-of-state manufacturers in violation of the interstate Commerce Clause, for out-of-state and in-state manufacturers are in the same position—both are liable if they are manufacture equipment before June 1, 1969, but do not use it in Vermont until on or after that date. International Business Machines Corp. v. Department of Taxes, 133 Vt. 269, 336 A.2d 158, 1975 Vt. LEXIS 381 (1975).

    Where an in-state manufacturer has paid the Vermont sales tax on the component parts of an object subject to a use tax because manufacturers uses rather than sells it, the sales tax is credited against the use tax and it is not the case that payment of the sales tax on the components exempts manufacturer from paying the use tax; therefore, it cannot be said that an out-of-state manufacturer pays a higher tax than an in-state manufacturer and that the statutory scheme violates the interstate Commerce Clause because the out-of-state manufacturer pays a use tax on the manufactured object’s price, which includes labor and overheard, while the in-state manufacturer pays a sales tax only on the price of the object’s component parts, before the in-state manufacturer adds his costs and profit margin to the price of the final object. International Business Machines Corp. v. Department of Taxes, 133 Vt. 269, 336 A.2d 158, 1975 Vt. LEXIS 381 (1975).

    Applicability.

    Statutory language taken as a whole supported the application of the use tax to raw materials purchased outside of Vermont, assembled into building components at an out-of-state factory, and then brought into Vermont to construct prefabricated buildings. Morton Buildings, Inc. v. Department of Taxes, 167 Vt. 371, 705 A.2d 1384, 1997 Vt. LEXIS 289 (1997).

    This section applies to any use of tangible personal property within the State, purchased at retail, and not subject to the State sales tax. Chittenden Trust Co. v. King, 143 Vt. 271, 465 A.2d 1100, 1983 Vt. LEXIS 512 (1983).

    Where Vermont residents travelled to plaintiff’s New Hampshire store, entered into transactions for the purchase of carpets and furniture by payment on the spot, cash on delivery in Vermont by seller, or some form of financing, a sales slip was generally made out, and the goods were delivered to buyer’s Vermont residence by the seller, with respect to Vermont’s sales tax-use tax statute, a use tax situation, not a sales tax situation, was presented and if either tax was due, it was a use tax. Rowe-Genereux, Inc. v. Department of Taxes, 138 Vt. 130, 411 A.2d 1345, 1980 Vt. LEXIS 1038 (1980).

    Double taxation.

    Taxing wood chips burned to produce electricity at an electric generating plant, in addition to taxing the plant’s use of electricity it generated, did not amount to impermissible double taxation, since two taxes were imposed on two separate transactions: (1) a tax on the purchase of tangible personal property, wood chips; and (2) a tax on the use of tangible personal property, electricity. Burlington Electric Dept. v. Department of Taxes, 154 Vt. 332, 576 A.2d 450, 1990 Vt. LEXIS 58 (1990).

    Use tax on films that theater owner rented did not result in double taxation of theater owner on ground of amusement tax paid by theater patrons upon admission, for the amusement tax is on the patron, not the theater owner. In re Merrill Theatre Corp. Sales & Use Tax, 138 Vt. 397, 415 A.2d 1327, 1980 Vt. LEXIS 1252 (1980).

    Enforcement.

    Department of Taxes was not estopped from seeking payment of compensating use tax under subdiv. (2) of this section from steel manufacturer, even though Department had not previously enforced section to its full extent, and even though Department representative allegedly gave informal oral opinion that tax was not applicable. Vermont Structural Steel v. Department of Taxes, 153 Vt. 67, 569 A.2d 1066, 1989 Vt. LEXIS 240 (1989).

    Purchase date.

    Vermont sales tax is imposed where the sale occurred on or after June 1, 1969 and the use tax is imposed where the property is first used on or after that date; and where manufacturer, after June 1, 1969, brought into Vermont, and used, property manufactured outside of Vermont before June 1, 1969, use tax was due, even though the same property would not have been subject to the sales tax if sold in Vermont before June 1, 1969. International Business Machines Corp. v. Department of Taxes, 133 Vt. 269, 336 A.2d 158, 1975 Vt. LEXIS 381 (1975).

    Retail sales.

    Although taxpayer claimed that he was not subject to use tax because he was broker/dealer of boats and did not purchase boat at retail but purchased boat at wholesale for resale in Vermont; and although taxpayer was dealer in Rhode Island, taxpayer did not purchase boat for resale in Vermont where evidence showed that taxpayer used boat for recreation in Vermont, did not advertise boat for sale, and did not register with the Department of Taxes as dealer to collect sales and use tax as required under 32 V.S.A. § 9707 ; in addition, taxpayer did not obtain a dealer registration for boat from Department of Motor Vehicles, nor had he ever sold a boat in Vermont; therefore taxpayer has failed to show he is not subject to the use tax. Bigelow v. Department of Taxes, 163 Vt. 33, 652 A.2d 985, 1994 Vt. LEXIS 169 (1994).

    Retail sales within the State are the general subject of the sales tax, unless specifically exempted, and sales from outside the State, at retail, to persons within the State for use in the State, as distinguished from resale, are the subject of the compensating use tax, unless specifically exempted. Standard Register Co. v. Commissioner of Taxes, 135 Vt. 271, 376 A.2d 41, 1977 Vt. LEXIS 606 (1977).

    Tangible personal property.

    Argument that subdiv. (2) of this section does not apply unless taxpayer is a “purchaser” of the tangible personal property was rejected. Vermont Structural Steel v. Department of Taxes, 153 Vt. 67, 569 A.2d 1066, 1989 Vt. LEXIS 240 (1989).

    Trial court properly concluded that use tax was lawfully applied to fabricated steel manufacturer that purchased raw steel and also sold its products to its own business as a construction contractor. Vermont Structural Steel v. Department of Taxes, 153 Vt. 67, 569 A.2d 1066, 1989 Vt. LEXIS 240 (1989).

    Computer software tape purchased by bank to enable its computer to keep records and perform various accounting functions in connection with its residential mortgage loan business constituted “tangible personal property” for purposes of this section, since it could be seen, weighed, measured, and touched, was not a credit or right, and its purchase did not involve a service-type transaction. Chittenden Trust Co. v. King, 143 Vt. 271, 465 A.2d 1100, 1983 Vt. LEXIS 512 (1983).

    Use.

    Argument was rejected that there is no “use” under subdiv. (2) of this section, unless the taxable item comes to a state of final repose with the user. Vermont Structural Steel v. Department of Taxes, 153 Vt. 67, 569 A.2d 1066, 1989 Vt. LEXIS 240 (1989).

    Cited.

    Cited in Wetterau, Inc. v. Department of Taxes, 141 Vt. 324, 449 A.2d 896, 1982 Vt. LEXIS 527 (1982); Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982); Frank W. Whitcomb Construction Corp. v. Commissioner of Taxes, 144 Vt. 466, 479 A.2d 164, 1984 Vt. LEXIS 506 (1984); Central Vermont Railway v. Department of Taxes, 144 Vt. 601, 480 A.2d 419, 1984 Vt. LEXIS 519 (1984); Bodenstein v. Department of Taxes, 147 Vt. 67, 510 A.2d 1314, 1986 Vt. LEXIS 371 (1986); Hannaford Brothers Co. v. Vermont Dep't of Taxes, 150 Vt. 6, 547 A.2d 1353, 1988 Vt. LEXIS 91 (1988); In re R. S. Audley, Inc., 151 Vt. 513, 562 A.2d 1046, 1989 Vt. LEXIS 87 (1989).

    § 9773a. Repealed. 1993, No. 89, § 14b, eff. July 1, 1996.

    History

    Former § 9773a. Former § 9773a, establishing a tax rate for fuel used in manufacturing, was derived from 1993, No. 89 , § 14; amended by 1993, No. 89 , § 14a and 1995, No. 29 , § 26; and expired on July 1, 1996, pursuant to 1993, No. 89, § 14b. 1993, No. 89, § 27(c)(2) had provided in part that this section should apply to purchases and uses of fuel used in manufacturing on or after July 1, 1995. An earlier § 9773a, which was derived from 1993, No. 1 (Sp. Sess.), § 6, expired June 30, 1994, pursuant to 1993, No. 1 (Sp. Sess.), § 8.

    § 9774. Rules for computing compensating use tax.

    1. 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.
    2. 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.
    3. 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.
    4. 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.

    HISTORY: 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.

    History

    Amendments

    —2003. Deleted subsec. (a), redesignated former subsecs. (b)-(e) as present subsecs. (a)-(d); in subsecs. (b)-(d), substituted “subdivision” for “section”, and in subsecs (b) and (d) substituted “purchase price” for “consideration” and “the sales price” for “‘receipts”’.

    Subsecs. (c)-(e): Substituted “under that section, multiplied by” for “of five percent of”.

    —1993 (Sp. Sess.). Increased the rate of tax from four to five percent in subsecs. (c)-(e).

    —1991. Substituted “five” for “four” preceding “percent” in subsecs. (c)-(e).

    —1981 (Adj. Sess.). Subsecs. (c)-(e): Increased the rate of tax from “three” to “four” percent.

    Effective date of 2003 amendment by 2003, No. 68 , § 63. 2003, No. 68 , § 87(17), provides that §§ 51-67 [§ 63 of that act amends this section], relating to streamlined sales tax provisions, including provisions relating to alcoholic beverages, clothing, and $20.00 telecommunications credit, and provisions relating to local option taxation of telecommunications and exemption of clothing, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreement, but no earlier than January 1, 2005.

    1991 amendment. See note under § 9771 of this title.

    Applicability of 2003 amendment by 2003, No. 68 , § 34. 2003, No. 68 , § 87(6), provides that § 31-34 [§ 34 of that act amends this section], relating to the sales and use tax rate of six percent, shall apply to sales and uses on and after October 1, 2003.

    ANNOTATIONS

    Computation of time.

    Foreign corporation that used construction equipment in Vermont for less than six consecutive months but for more than six cumulative months over three-year period was properly taxed on purchase price or market value rather than on fair rental value under subsec. (b) of this section. In re R. S. Audley, Inc., 151 Vt. 513, 562 A.2d 1046, 1989 Vt. LEXIS 87 (1989).

    Cost.

    “Cost,” within provision of this section relating to cost of property for use tax purposes, refers to retail selling price, not manufacturer’s cost. International Business Machines Corp. v. Department of Taxes, 133 Vt. 269, 336 A.2d 158, 1975 Vt. LEXIS 381 (1975).

    Exceptions.

    Pursuant to subdiv. (a)(2) of this section, individual who acquires vessel out of state through retail purchase, does not pay a sales tax on that purchase, and uses the vessel in Vermont for at least 30 days, is subject to Vermont’s use tax. Bigelow v. Department of Taxes, 163 Vt. 33, 652 A.2d 985, 1994 Vt. LEXIS 169 (1994).

    Resident.

    Foreign corporation working as general contractor in bridge and highway construction in New England and using equipment in Vermont in excess of six cumulative months over three-year period was resident of State for purposes of subsec. (b) of this section. In re R. S. Audley, Inc., 151 Vt. 513, 562 A.2d 1046, 1989 Vt. LEXIS 87 (1989).

    Tax basis.

    The right to use personal property cannot be separated from the property itself, and the right to broadcast films and video tapes is of no value without the film or tape itself; so that where tapes and films were received from out of state and used for a fee by corporation’s television station, they were “tangible personal property” within this chapter and the tax was on the tapes and films, not an improper tax on the right to broadcast them. Mt. Mansfield Television v. Commissioner of Taxes, 133 Vt. 284, 336 A.2d 193, 1975 Vt. LEXIS 384 (1975).

    Use.

    Presence of foreign corporation’s construction equipment in Vermont in performance of any contract or in storage between contracts or following completion of contract would constitute “use” within meaning of subdiv. (b)(2) of this section. In re R. S. Audley, Inc., 151 Vt. 513, 562 A.2d 1046, 1989 Vt. LEXIS 87 (1989).

    Cited.

    Cited in Frank W. Whitcomb Construction Corp. v. Commissioner of Taxes, 144 Vt. 466, 479 A.2d 164, 1984 Vt. LEXIS 506 (1984); Bigelow v. Department of Taxes, 163 Vt. 33, 652 A.2d 985, 1994 Vt. LEXIS 169 (1994).

    § 9775. Returns.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.

    HISTORY: 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.

    History

    Editor’s note—

    The text of subsec. (a) of this section is based on the harmonization of two amendments. During the 1999 adjourned session, subsec. (a) was amended twice, by §§ 3 and 18 of Act No. 119. In order to reflect all of the changes enacted by the Legislature, the text of §§ 3 and 18 of Act No. 119 was merged to arrive at a single version of this subsection. The changes that each of the amendments made are described in the amendment notes set out below.

    Amendments

    —2009. Subsec. (a): Substituted “subsections (e) and (g)” for “subsection (e)” in the third sentence.

    Subsec. (g): Added.

    —2005 (Adj. Sess.). Subsec. (a): Added “Except as otherwise provided in this section” preceding “every person”.

    Subsec. (f): Added.

    —2003. Subsecs. (a) and (b): Amended generally.

    —1999 (Adj. Sess.). Subsec. (a): Act No. 119, § 3, inserted “except as provided in subsection (e) of this section” following “other cases” in the present third sentence.

    Act No. 119, § 18, added the first sentence and substituted “more than $500.00 but less than $2,500.00” for “$1,000.00 or less” in the present second sentence.

    Subsec. (e): Added by Act No. 119, § 3.

    —1997 (Adj. Sess.). Subsec. (a): Added the third sentence.

    —1997. Subsec. (a): Act No. 60 added the fifth sentence.

    Subsec. (c): Act No. 50, § 33, inserted “or she” preceding “may deem” in the first sentence and “returns and” preceding “amended returns” in the second sentence.

    Subsec. (d): Added by Act No. 50, § 36.

    —1989 (Adj. Sess.). Subsec. (a): Amended generally by Act No. 124.

    Act No. 222 inserted “23rd of February” following “25th” in the second sentence.

    —1975 (Adj. Sess.). Subsec. (a): Substituted “the thirtieth (28th of February) day of each month” for “July 15, 1969, and on or before the fifteenth day of each month thereafter” preceding “make and file” in the first sentence.

    Effective date of 2003 amendment. 2003, No. 68 , § 87(17) provides that §§ 51-67 of that act [§ 64 amends this section], relating to streamlined sales tax provisions, including provisions relating to alcoholic beverages, clothing, and $20.00 telecommunications credit, and provisions relating to local option taxation of telecommunications and exemption of clothing, shall take effect on the first day of the second quarter following the date of Vermont’s membership in the multistate streamlined sales and use tax agreement, but no earlier than January 1, 2005.

    Effective date of amendments—

    2005, No. 207 (Adj. Sess.), § 26(3). 2005, No. 207 (Adj. Sess.), § 26(3) provides: “Sec. 5 (streamlined sales tax agreement conforming language) [which amended this section] shall take effect on the first day of the second quarter following the date of Vermont’s membership in the Multistate Streamlined Sales and Use Tax Agreement.”

    1999 (Adj. Sess.). 1999, No. 119 (Adj. Sess.), § 16, eff. May 18, 2000, provided in part that § 3 of that act, which amended this section, shall apply to sales made on or after January 1, 2001.

    Applicability of 2009 amendment to subsec. (a) and addition of subsec. (g). 2009, No. 1 (Sp. Sess.), § 58(11) provides that § H.45 [which amended subsec. (a) and added subsec. (g) to this section] shall take effect with respect to cancellations on and after July 1, 2009.

    § 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.

    HISTORY: 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.

    History

    Amendments

    —2021. Inserted “Pursuant to section 3110 of this title,” at the beginning of the second sentence.

    —1997 (Adj. Sess.). Added the second and third sentences.

    —1991 (Adj. Sess.). Deleted “by him” following “collected” in two places in the first sentence and deleted the third through seventh sentences.

    —1989 (Adj. Sess.). Substituted “commissioner of banking, insurance, and securities” for “commissioner of banking and insurance” in the third sentence.

    § 9777. Determination of tax or penalty.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: 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.

    History

    Revision note—

    Substituted “on” for “of” preceding “his or her” in the first sentence of subsec. (b) to correct a typographical error.

    In subsec. (b), substituted “subsection (a) of this section” for “subsection 9777(a) of this title” to conform reference to V.S.A. style.

    Amendments

    —1991 (Adj. Sess.). Added “or penalty” following “tax” in the section heading, added a new subsec. (b), redesignated former subsec. (b) as subsec. (c), and in that subsection substituted “subsections (a) and (b)” for “subsection (a)” following “notwithstanding” in the first sentence and inserted “or (b)” following “9777(a)” in the second sentence.

    —1991. Subsec. (a): Inserted “in writing” following “apply” in the fourth sentence.

    —1989 (Adj. Sess.). Designated the existing provisions of the section as subsec. (a), substituted “60” for “thirty” in the fourth sentence of that subsection, and added subsec. (b).

    Effective date of amendments—

    1989 (Adj. Sess.). 1989, No. 222 (Adj. Sess.), § 44(3), provided that the amendment to this section by § 26 of that act would take effect on May 31, 1990, except that the portion of § 26 extending the appeal period from 30 to 60 days would take effect on July 1, 1990.

    ANNOTATIONS

    Presumptions.

    On appeal by purchaser of goods against whom the Department of Taxes assessed an alleged sales tax deficiency under this section based upon invoices for taxable purchases that did not state the three percent sales tax, the presumption of taxability under § 9813 of this title, governing presumptions and burden of proof, applied to the receipts involved, since the tax was properly imposed under the authority of § 9771 of this title, governing imposition of sales tax. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    Cited.

    Cited in Chittenden Trust Co. v. King, 143 Vt. 271, 465 A.2d 1100, 1983 Vt. LEXIS 512 (1983).

    § 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.

    HISTORY: Added 1969, No. 144 , § 1, eff. June 1, 1969.

    ANNOTATIONS

    Cited.

    Cited in Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    § 9779. Deferred payment sales.

    The Commissioner may provide by regulation 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.

    HISTORY: Added 1969, No. 144 , § 1, eff. June 1, 1969.

    § 9780. Cancelled sales, returns, uncollectibles.

    The Commissioner may provide by regulation 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.

    HISTORY: Added 1969, No. 144 , § 1, eff. June 1, 1969.

    ANNOTATIONS

    Refunds.

    Overwhelming majority of courts in cases involving statutes similar to Vermont’s have held that third-party bad debt does not entitle the retailer or creditor to reclaim sales tax. Thus, a lender and a retailer that partnered to operate a private label credit card program through the retailer’s stores were not entitled to sales tax refunds related to bad debt. Citibank (South Dakota), N.A. v. Dep't of Taxes, 2016 VT 69, 202 Vt. 296, 149 A.3d 149, 2016 Vt. LEXIS 69 (2016).

    § 9781. Refunds.

    1. 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.
    2. 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.
    3. 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.
    4. 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.

    HISTORY: 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.

    History

    Amendments

    —2013. Subsec. (c): Inserted “the latest of” preceding “45 days” and substituted “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” for “whichever is the later date” at the end of the subsection.

    —1997 (Adj. Sess.). Subsec. (a): Substituted “date the return was required to be filed” for “payment thereof” at the end of the first sentence.

    —1983. Subsec. (c): Deleted “of twelve percent” preceding “per annum” and inserted “established from time to time by the commissioner pursuant to section 3108 of this title” thereafter in the first sentence, and substituted “the return was filed” for “of the excess payment” following “date” and inserted “including any extensions of time thereto” following “due” in the second sentence.

    —1981 (Adj. Sess.). Subsec. (d): Added.

    —1979 (Adj. Sess.). Subsec. (c): Increased rate of interest on refunds from six to twelve percent.

    —1975 (Adj. Sess.). Subsec. (a): Act No. 154 in the first and third sentences substituted “three years” for “two years”.

    Subsec. (c): Added by Act No. 190.

    Effective date of amendments—

    1975, No. 190 (Adj. Sess.). 1975, No. 190 (Adj. Sess.), § 4, provided, in part, that § 1, which added subsec. (c) to this section, “shall take effect for refund claims filed on or after July 1, 1976”.

    Effective date of amendments—

    1975, No. 154 (Adj. Sess.). 1975, No. 154 (Adj. Sess.) § 16, provided, in part, that § 11, which amended subsec. (a) of this section, “shall be effective with respect to assessments made and returns filed after June 30, 1976”.

    1983 amendment. 1983, No. 59 , § 13, eff. April 22, 1983, provided, in part, that § 6, which amended subsec. (c) of this section, “shall affect any unpaid tax liability or overpayment on January 1, 1983, and thereafter.”

    Applicability of 2013 amendments. 2013, No. 73 , § 60(9) provides that § 47 (interest calculation on sales tax refunds) shall take effect for refund petitions filed after the date of passage of this act [June 5, 2013].

    ANNOTATIONS

    Cited.

    Cited in Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982); Central Vermont Railway v. Department of Taxes, 144 Vt. 601, 480 A.2d 419, 1984 Vt. LEXIS 519 (1984).

    § 9782. Mobile telecommunications sourcing.

    1. 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.
      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. (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.

    HISTORY: Added 2001, No. 144 (Adj. Sess.), § 35, eff. June 21, 2002.

    History

    Applicability of enactment.

    2001, No. 144 (Adj. Sess.), § 42(11) provides that § 35 of that act [which enacts this section] shall apply to customer bills issued after August 1, 2002.

    § 9783. Repealed. 2011, No. 45, § 37(14), eff. October 1, 2015.

    History

    Former § 9783. Former § 9783, relating to the notice of use tax due, was derived from 2011, No. 45 , § 36b.

    Applicability of 2011 enactment; prospective repeal. 2011, No. 45 , § 37(14) provides: “Sec. 36b [which enacted this section] (out of state sellers notice) is repealed on the date on which, through legislation, rule, agreement, or other binding means, 15 or more other states have adopted requirements that are the same, substantially similar, or significantly comparable to the requirements contained in Sec. 36a [which enacted subdiv. 9701(9)(I) of this title (Internet affiliate sales tax)]. The attorney general shall determine when this date has occurred.” The Office of the Attorney General determined that the requirements of 2011, No. 45 , § 37(14) were met on October 1, 2015.

    Subchapter 4. Enforcement and Penalties

    § 9811. Proceedings to recover tax.

    1. 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.
    2. 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.

    HISTORY: Added 1969, No. 144 , § 1, eff. June 1, 1969; amended 2017, No. 11 , § 63.

    History

    Amendments

    —2017. Subsec. (b): Inserted “business” following “within five” in the second sentence.

    CROSS REFERENCES

    Levy of execution, see 12 V.S.A. chapter 111.

    Fees of sheriffs, see § 1591 of this title.

    § 9812. Actions for collection of tax.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 1969, No. 144 , § 1, eff. June 1, 1969; amended 1993, No. 49 , § 18, eff. May 28, 1993.

    History

    Amendments

    —1993 amendment. Subsec. (a): Rewrote the first sentence and added the second and third sentences.

    § 9813. Presumptions and burden of proof.

    1. 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.
    2. 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.

    HISTORY: Added 1969, No. 133 § 1, eff. June 1, 1969; amended 2017, No. 74 , § 140b.

    History

    Revision note—

    In subsec. (a), substituted “subdivisions (1), (2) and (3) of section 9771” for “paragraphs (1), (2) and (3) of section 9771” and “subdivision (4) of section 9771” for “paragraph (4) of section 9771” to conform references to V.S.A. style.

    Amendments

    —2017. Subsec. (a): Substituted “section 9771” for “subdivisions 9771(1), (2), and (3) of this title, and all amusement charges of any type mentioned in subdivision 9771(4)” following “type mentioned in”.

    ANNOTATIONS

    Applicability of presumption.

    Superior Court properly applied statutory presumption in case involving collection and payment of sales taxes on installation and connection fees charged by cable television companies, since provision was enacted specifically to abrogate common law presumption favoring taxpayers in circumstances that included the present case. Mountain Cable Co. v. Department of Taxes, 168 Vt. 454, 721 A.2d 507, 1998 Vt. LEXIS 392 (1998).

    The true meaning of the Supreme Court’s holding in McClure Newspapers, Inc. v. Vermont Department of Taxes , 132 Vt. 169, 315 A.2d 452 (1974), is that the presumption of taxability under this section is only available to the Department of Taxes when it seeks to assess a sales tax imposed under § 9771 of this title, governing imposition of sales tax. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    On appeal by purchaser of goods against whom the Department of Taxes assessed an alleged sales tax deficiency under § 9777 of this title, governing determination of tax based upon invoices for taxable purchases, which did not state the three percent sales tax, the presumption of taxability under this section applied to the receipts involved, since the tax was properly imposed under the authority of § 9771 of this title, governing imposition of sales tax. Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982).

    Cited.

    Cited in Bodenstein v. Department of Taxes, 147 Vt. 67, 510 A.2d 1314, 1986 Vt. LEXIS 371 (1986).

    § 9814. Repealed. 1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.

    History

    Former § 9814. Former § 9814, relating to late filing fees, penalties, and interest, was derived from 1969, No. 144 , § 1 and amended by 1975, No. 154 (Adj. Sess.), § 12; 1977, No. 72 , §§ 1, 2; 1979, No. 105 (Adj. Sess.), § 41; 1987, No. 48 , § 11; 1991, No. 67 , § 21; 1991, No. 186 (Adj. Sess.), § 27; and 1993, No. 49 , § 19.

    § 9814a. Criminal penalties.

    1. Failure to file; failure to collect; failure to remit.   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.
    2. Failure to file; failure to collect; failure to remit; in excess of $500.00.   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.
    3. 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 such data in connection therewith 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 herein imposed or to state the tax separately on any bill, statement, memorandum, or receipt issued or employed by him or her 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 herein 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.
    4. 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.
    5. 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 thereof during which he or she shall be so engaged. Each such 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, 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 or more than $500.00 or to be imprisoned for not more than six months, or both, such fine and imprisonment in the discretion of the court.

    HISTORY: Added 1999, No. 49 , § 65, eff. June 2, 1999; amended 2003, No. 70 (Adj. Sess.), §§ 57, 58, eff. March 1, 2004.

    History

    Amendments

    —2003 (Adj. Sess.). Substituted “license” for “certificate of authority” in two places in subsec. (c) and in the first sentence in subsec. (e).

    § 9815. Notice and limitations of time.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 1969, No. 144 , § 1, eff. June 1, 1969; amended 1989, No. 119 , §§ 11, 15, eff. June 22. 1989.

    History

    Amendments

    —1989. Subsec. (b): Inserted “the later of” following “years from” and “or the date a return is due” preceding “provided, however” and added “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” at the end of the second sentence.

    1989, No. 119 , § 11 amendment. 1989, No. 119 , § 28(3), provided that the amendment to this section by § 11 of that act would apply with respect to returns filed on and after June 22, 1989.

    § 9816. Suspension or revocation of certificates; appeal.

    1. 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 promulgated hereunder.
    2. Any person required to collect the tax aggrieved by a suspension, revocation, or refusal may appeal therefrom to any Superior judge within 10 days after written notice of the suspension, revocation, or refusal has been mailed or delivered to him or her. The Superior judge or another Superior judge designated by the administrative judge shall hear the appeal forthwith.
    3. If the appealing person required to collect the tax 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 the appeal, then the suspension or revocation shall be inoperative during the appeal.
    4. 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 aforesaid bond is filed.
    5. 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.

    HISTORY: 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.

    History

    Amendments

    —2003 (Adj. Sess.). Subsec. (a): Substituted “license” for “certificate of authority” following “revoke the”.

    —1997. Subsec. (e): Substituted “$500.00” for “$100.00” in the last sentence.

    —1995. Subsec. (e): Inserted “or in the case of an unregistered business” following “revocation” and substituted “vendor has no certificate or the” for “vendor’s” following “public that the” in the first sentence.

    —1993. Substituted “authority” for “registration” following “certificate of” in subsecs. (a) and (d), and inserted “or amusement charges” following “retail sales” and substituted “made” for “transacted” preceding “at that location” in the first sentence of subsec. (e).

    —1991 (Adj. Sess.). Subsec. (e): Added.

    —1979 (Adj. Sess.). Subsec. (b): In the last sentence substituted “administrative” for “chief superior” judge.

    § 9817. Review of Commissioner’s decision.

    1. 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.
    2. 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.
    3. [Repealed.]

    HISTORY: 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.

    History

    Amendments

    —2019. Subsec. (a): Deleted the former second sentence.

    Subsec. (c): Repealed.

    —2011 (Adj. Sess.). Subsec. (a): Added “Washington” preceding “superior court” and “or the superior court of the county in which the taxpayer resides or has a place of business” following “superior court” in the first sentence.

    —1997 (Adj. Sess.). Subsec. (a): Divided the paragraph into two sentences by substituting “The appellant shall give security” for “by filing a notice of appeal with the superior court as prescribed by law and on giving security”.

    Subsec. (c): In the first sentence, substituted “notice” for “petition” twice and substituted “review is sought” for “the petition or appeal is made” near the middle.

    —1973 (Adj. Sess.). Changed “county court” to “superior court” in two places in subsec. (a) and preceding “conditioned” in subsec. (c).

    1997 (Adj. Sess.) amendment. 1997, No. 161 (Adj. Sess.), § 26, provided in part that the amendment to this section shall be retroactive to January 1, 1998.

    ANNOTATIONS

    Appeal to Supreme Court.

    This section precludes direct appeal to the Supreme Court from a decision of the Commissioner, but not an appeal from a subsequent Superior Court decision. International Business Machines Corp. v. Department of Taxes, 133 Vt. 269, 336 A.2d 158, 1975 Vt. LEXIS 381 (1975).

    Construction.

    Statement of purpose in the 1998 amendment to the tax appeal statute unambiguously evinces a legislative intent merely to clarify existing law and practice while providing uniformity to language regarding appeals from administrative agencies to courts—without making any substantive changes to the law. Vermont Golf Ass'n v. Dep't of Taxes, 2012 VT 68, 192 Vt. 224, 57 A.3d 707, 2012 Vt. LEXIS 63 (2012).

    1998 amendment did not affect the tax appeal statute in any substantive way. Therefore, any inconsistency between subsection (a) and subsection (c) is overcome by the plain language of subsection (a) and the certainty that the 1998 amendment was not intended to change its meaning; moreover, the subsections have distinct purposes. Vermont Golf Ass'n v. Dep't of Taxes, 2012 VT 68, 192 Vt. 224, 57 A.3d 707, 2012 Vt. LEXIS 63 (2012).

    Security.

    Tax review statute mandates the posting of security for an appeal to the Superior Court. Thus, failure to post security is a fatal defect, regardless of whether one considers it to be jurisdictional in nature. Vermont Golf Ass'n v. Dep't of Taxes, 2012 VT 68, 192 Vt. 224, 57 A.3d 707, 2012 Vt. LEXIS 63 (2012).

    Tax review statute allows any aggrieved taxpayer to appeal to the Superior Court, but the taxpayer must provide security approved by the Commissioner of Taxes to cover any tax that remains unpaid. The statute requires that the taxpayer either pay the tax assessed or post approved security as a mandatory condition to appeal the Commissioner’s decision to the Superior Court. Vermont Golf Ass'n v. Dep't of Taxes, 2012 VT 68, 192 Vt. 224, 57 A.3d 707, 2012 Vt. LEXIS 63 (2012).

    Specific statutory requirement of posting security in the tax appeal statute, which affects substantial rights, trumps a procedural rule requirement; the statute establishes a specific, required statutory antecedent for an appeal from a tax assessment to go forward. The failure to post security may not deprive the court of its subject matter jurisdiction, but it conditions a taxpayer’s right to proceed with the appeal on meeting the specific statutory requirement of posting security in the manner set forth in the statute. Vermont Golf Ass'n v. Dep't of Taxes, 2012 VT 68, 192 Vt. 224, 57 A.3d 707, 2012 Vt. LEXIS 63 (2012).

    Commissioner of Taxes’ decision affirmed the Department of Taxes’ assessment. Thus, to stay the assessment, the taxpayer had to pay the amount for which it was found liable in the Commissioner’s decision, deposit that amount with the Commissioner, or file a bond in the amount of which the taxpayer sought review; its post-audit payment of taxes was irrelevant to this analysis. Vermont Golf Ass'n v. Dep't of Taxes, 2012 VT 68, 192 Vt. 224, 57 A.3d 707, 2012 Vt. LEXIS 63 (2012).

    Time limit.

    Thirty-day period for appeal from a decision or action of the Commissioner of Taxes is a special statute concerning a specific subject, and the period may not be extended under general statute providing for extension of time for appeal for cause or under rule so providing. F. M. Burlington Co. v. Commissioner of Taxes, 134 Vt. 515, 365 A.2d 531, 1976 Vt. LEXIS 716 (1976).

    Cited.

    Cited in Bud Crossman Plumbing & Heating v. Commissioner of Taxes, 142 Vt. 179, 455 A.2d 799, 1982 Vt. LEXIS 637 (1982); Chittenden Trust Co. v. King, 143 Vt. 271, 465 A.2d 1100, 1983 Vt. LEXIS 512 (1983); Central Vermont Railway v. Department of Taxes, 144 Vt. 601, 480 A.2d 419, 1984 Vt. LEXIS 519 (1984); Vermont Structural Steel v. Department of Taxes, 153 Vt. 67, 569 A.2d 1066, 1989 Vt. LEXIS 240 (1989); Bigelow v. Department of Taxes, 163 Vt. 33, 652 A.2d 985, 1994 Vt. LEXIS 169 (1994).

    § 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.

    HISTORY: Added 1973, No. 165 (Adj. Sess.), § 2, eff. March 20, 1974.

    § 9819. Reallocation of receipts.

    1. 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.
      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: (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:
        1. credits awarded under subsections 5930cc(a) and (b) of this title, concerning qualified historic rehabilitation projects and qualified fagade improvement projects; and
        2. 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.
    2. 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.
    3. 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.

    HISTORY: 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.

    History

    Amendments

    —2005 (Adj. Sess.). Rewrote subdiv. (b)(1), and substituted “30 percent” for “40 percent” in subdiv. (b)(2), and “5930cc(a) or (b)” for “section 5930n or 5930p” in the first sentence of subdiv. (c)(2).

    —2005. Subsec. (d): Act No. 14 rewrote the subsection and added the subdivision designations.

    Subdiv. (d)(2): Act No. 75 substituted “municipality when construction is 50 percent complete as determined by the board, and” for “municipality upon commencement of construction, and ” in the third sentence.

    —2001 (Adj. Sess.) Subsec. (a): Amended generally.

    Subsec. (b): Added.

    Subdiv. (b)(1): Act No. 114, effective July 1, 2003, substituted “$1,000,000.00” for “$750,000.00” in the introductory paragraph.

    Subsec. (c): Redesignated from former subsec. (b). Substituted “section 5930n or 5930p of this title” for “subchapter 11F or 11G of chapter 151 of Title 32” in the first sentence of subdiv. (2).

    Subsec. (d): Redesignated from former subsec. (c). Substituted “downtown development board” for “Vermont downtown development board established under section 2792 of Title 24” in the second sentence.

    —1997 (Adj. Sess.). Section amended generally.

    Downtown sales tax allocation formula. 2005, No. 14 , § 15(d), as amended by 2005, No. 75 , § 14, provides: “Sec. 9 (simplification of designated downtown sales tax allocation formula) shall take effect with respect to applications submitted after July 1, 2005.”

    Chapter 235. Shows and Concessions

    §§ 9901-9910. Repealed. 1991, No. 167 (Adj. Sess.), § 66(6).

    History

    Former §§ 9901-9910. Former § 9901, relating to application for and display of license, was derived from V.S. 1947, § 1240; 1947, No. 24 , §§ 2, 3; P.L. §§ 1186, 1187; 1927, No. 126 , § 1; 1923, No. 140 ; 1921, No. 210 , § 1; G.L. § 6771; 1915, No. 203 , § 1; P.S. § 5678; V.S. § 4873; R.L. § 4078; 1867, No. 56 , § 1; 1865, No. 50 , and amended by 1961, No. 217 , § 8.

    Former § 9902, relating to filing of contracts by street and carnival shows, was derived from V.S. 1947, § 1241; 1947, No. 24 , § 3; P.L. § 1187; 1927, No. 126 , § 1; 1927, No. 140 ; 1921, No. 210 , § 1; G.L. § 6771; 1915, No. 203 , § 1; P.S. § 5678; V.S. § 4873; R.L. § 4078; 1867, No. 56 , § 1; 1865, No. 50 , and amended by 1961, No. 217 , § 8.

    Former § 9903, relating to prohibitions, was derived from 1947, § 1238; 1947, No. 24 , § 1; P.L. § 1185; G.L. § 6770; P.S. § 5677; 1904, No. 148 , and amended by 1961, No. 217 , § 8.

    Former § 9904, relating to issuance and revocation of licenses, was derived from 1949, No. 33 ; V.S. 1947, § 1239; 1945, No. 19 , § 1; P.L. § 1188; No. 131, § 1, and amended by 1961, No. 217 , § 8.

    Former § 9905, relating to license fees for circuses, menageries, wild west, and itinerant shows, was derived from V.S. 1947, § 1234; 1947, No. 24 , § 1; P.L. § 1185; G.L. § 6770; P.S. § 5677; and 1904, No. 148 , § 3.

    Former § 9906, relating to license fees for carnival shows, was derived from V.S. 1947, § 1235; 1947, No. 24 , § 1; P.L. § 1185; G.L. § 6770; P.S. § 5677, and 1904, No. 148 , § 3.

    Former § 9907, relating to license fees for food and drink concessions, was derived from V.S. 1947, § 1236; 1947, No. 24 , § 1; P.L. § 1185; G.L. § 6770; P.S. § 5677, and 1904, No. 148 , § 3.

    Former § 9908, relating to license fees for game concessions, was derived from V.S. 1947, § 1237; 1947, No. 24 , § 1; P.L. § 1185; G.L. § 6770; P.S. § 5677, and 1904, No. 148 , § 3.

    Former § 9909, relating to exemptions, was derived from 1949, No. 34 ; V.S. 1947, § 1242; 1947, No. 24 , § 1; P.L. § 1185; G.L. § 6770; P.S. § 5677; 1904, No. 148 , § 3, and amended by 1989, No. 43 , § 1.

    Former § 9910, relating to penalties, was derived from V.S. 1947, § 1243; 1947, No. 24 , § 1; P.L. § 1185; 1185; G.L. § 6770; P.S. § 5677, and 1904, No. 148 , § 3.

    Chapter 236. Tax on Gains from the Sale or Exchange of Land

    CROSS REFERENCES

    Property transfer tax, see chapter 231 of this title.

    ANNOTATIONS

    Purpose.

    Vermont land gains tax is a graduated tax designed to deter short-term high-profit transactions. Langrock v. Department of Taxes, 139 Vt. 108, 423 A.2d 838, 1980 Vt. LEXIS 1491 (1980).

    Law Reviews —

    For note relating to preservation of farmlands, see 11 Vt. L. Rev. 603 (1986).

    § 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.

    HISTORY: Added 1973, No. 81 , § 8, eff. May 1, 1973.

    ANNOTATIONS

    Application.

    A trustee in bankruptcy who sells land of debtor is liable to pay the tax imposed on the gains from the sale or exchange of land in Vermont. In re Henry, 135 B.R. 6, 1991 Bankr. LEXIS 1863 (Bankr. D. Vt. 1991).

    Purpose.

    One purpose of land gains tax is deterrence of land speculation. Chamberlin v. Vermont Department of Taxes, 160 Vt. 578, 632 A.2d 1103, 1993 Vt. LEXIS 84 (1993).

    Cited.

    Cited in State v. Zinn, 150 Vt. 278, 552 A.2d 413, 1988 Vt. LEXIS 156 (1988).

    § 10002. Land and residences.

    1. “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.
    2. 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, such 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.
    3. 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.
    4. 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) .
    5. 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).
    6. 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 he or she purchases from the person who built the house. The person acquiring such land must certify to the Commissioner of Taxes that he or she 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 such time as all conditions of this subsection have been met.
    7. 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 such 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 his or her principal residence,” the land need not have been purchased at the same time as the dwelling to qualify for such exemption.
    8. 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.
    9. 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.
    10. 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.
    11. Also excluded from the definition of “land” is agricultural land transferred by a farmer to a member of his or her 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.
    12. 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 .
    13. 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 or “eligible property” in section 3764 of this title, and continues to meet that definition for at least six years after the transfer.
    14. 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.
    15. 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.
    16. 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.
    17. 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.

    HISTORY: 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.

    History

    References in text.

    Section 3764 of this title, referred to in subsec. (m), was repealed by 1995, No. 178 (Adj. Sess.), § 291(4).

    Revision note

    —2013. In subsec. (l), substituted “As used in” for “For purposes of” in the second sentence to conform to V.S.A. style.

    Amendments

    —2019. Subsec. (a): Inserted “that has been purchased and subdivided by the transferor within the six years prior to the sale or exchange of the land” in the first sentence; added “, whether subdivided or not” following “have been separated” in fourth sentence, and added the fifth through seventh sentences.

    Subsec. (p): Amended generally.

    —2015. Subsec. (q): Added.

    —2013. Subsec. (p): Inserted “or neighborhood development area designated under 24 V.S.A. chapter 76A” following “neighborhood” and “or neighborhood development area” following “Vermont neighborhood”.

    —2007 (Adj. Sess.). Subsec. (p): Added.

    Subsec. ( o ): Added.

    —2003 (Adj. Sess.). Subsec. (d): Substituted “ 10 V.S.A. § 212(10) ” for “Title 10, section 252(4) and section 302(4)”.

    —1999. Subsec. (f): Inserted “or she” following “taxes that he” and substituted “two” for “2” and “three” for “3” in the second sentence and added the third sentence.

    —1997 (Adj. Sess.). Subsec. (n): Added.

    —1995. Subsec. (a): Inserted “or her” preceding “principal” in the first sentence, substituted “buildings” for “building” preceding “or other” in the second sentence and added the third and fourth sentences.

    —1991 (Adj. Sess.). Subsec. (m): Added.

    —1989 (Adj. Sess.). Subsec. (b): Substituted “within one year from the date of acquisition, will” for “is to” following “dwelling which” in the first sentence.

    Subsec. (h): Deleted “pursuant to subchapter 6 of chapter 11 of Title 15” following “marriage.”

    —1989. Subsec. ( l ): Added.

    —1987. Subsec. (i): Amended generally by Act No. 27.

    Subsec. (k): Added by Act No. 64.

    —1983. Act No. 20 added subsecs. (i) and (j).

    Act No. 59 deleted the third sentence of subsec. (f).

    —1981 (Adj. Sess.). Subsec. (h): Added.

    —1979 (Adj. Sess.). Subsec. (b): Deleted “with interest at the rate of 1 percent per month and a penalty of 5 percent” from the end of the last sentence.

    —1977 (Adj. Sess.). Subsec. (a): Substituted “ten” for “five” acres and “seller of such land” for “taxpayer” preceding “as his principal residence.”

    Subsec. (b): Amended generally.

    Subsec. (c): Substituted “ten” for “five” acres and “twenty-five” for “ten” acres.

    Subsec. (f): Substituted “ten” for “five” acres in the first sentence and deleted “(1)” following “subsection (b)” in the second sentence.

    —1975 (Adj. Sess.). Subsecs. (e)-(g): Added.

    —1973 (Adj. Sess.). Section amended generally.

    Effective date of amendments—

    1997 (Adj. Sess.). 1997, No. 103 (Adj. Sess.), § 9, provided: “This act shall take effect on January 1, 1998, and shall apply to any sale of a mobile home park that occurs on or after January 1, 1998.”

    2019 amendment. 2019, No. 71 , § 24(6) provides that § 16 of that act [which amends subsecs. (a) and (p) of this section] shall take effect on January 1, 2020 and shall apply to gains from sales made on or after that date.

    2009 statutory revision. 2009, No. 3 , § 12a provides: “The staff of the legislative council, in its statutory revision capacity, is authorized and directed to make such amendments to the Vermont Statutes Annotated as are necessary to effect the purpose of this act, including, where applicable, substituting the words ‘civil marriage’ for the word ‘marriage.’ Such changes shall be made when new legislation is proposed, or there is a republication of a volume of the Vermont Statutes Annotated.”

    ANNOTATIONS

    Builder’s exemption.

    Builder’s exemption to land gains tax exists because builder holds title in order to turn land into residential use as opposed to making a high profit, short-term land deal. Chamberlin v. Vermont Department of Taxes, 160 Vt. 578, 632 A.2d 1103, 1993 Vt. LEXIS 84 (1993).

    In the context of a modular home, there is substantial compliance with builder’s exemption to land gains tax if taxpayer builds, and sells to purchaser along with the land, all items necessary for attaching the modular home as long as the home is delivered and occupied by purchaser as a principal residence within a reasonable time thereafter. Chamberlin v. Vermont Department of Taxes, 160 Vt. 578, 632 A.2d 1103, 1993 Vt. LEXIS 84 (1993).

    Cited.

    Cited in In re Henry, 135 B.R. 6, 1991 Bankr. LEXIS 1863 (Bankr. D. Vt. 1991).

    § 10002a. Principal residence.

    1. “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.
    2. “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.
    3. “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.

    HISTORY: Added 1987, No. 64 , § 12, eff. June 1, 1987; amended 1989, No. 222 (Adj. Sess.), § 29, eff. May 31, 1990.

    History

    Amendments

    —1989 (Adj. Sess.). Subsec. (a): Amended generally.

    § 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%

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    * 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).

    HISTORY: Added 1973, No. 81 , § 8, eff. May 1, 1973; amended 1987, No. 64 , § 8, eff. June 1, 1987.

    History

    Amendments

    —1987. In the table of tax rates, added “Less than 4 months” and “4 months, but less than 8” and the corresponding percentages for those categories and substituted “8 months but less than 1 year” for “Less than 1 year” and in the footnote, added the second sentence.

    ANNOTATIONS

    Constitutionality.

    It was not the function of the Vermont Supreme Court to pass upon validity of the legislative concern over land use and development or the wisdom of the means the Legislature chooses to deal with it, in reviewing the constitutionality of land gains tax imposed by this chapter, but merely to determine whether the Legislature may have acted in response to such a concern and whether, in so doing, it acted within its constitutional bounds. Andrews v. Lathrop, 132 Vt. 256, 315 A.2d 860, 1974 Vt. LEXIS 330 (1974).

    In action attacking constitutionality of tax imposed by this chapter, court would not hold that Legislature could not have properly acted to restrict land speculation by means of the tax structure. Andrews v. Lathrop, 132 Vt. 256, 315 A.2d 860, 1974 Vt. LEXIS 330 (1974).

    Computation.

    Land gains tax imposed on the gain derived from the sale or exchange of land held by transferor for less than six years, with a tax rate proportional to the percentage of gain and in inverse proportion to the time the land was held, which provided that “the tax . . . shall be based upon the years held at the following rates on the gain,” was clearly an example of insufficient legislative drafting, and would be held to create marginal rates for gain rather than to raise the tax on the entire amount when a gain reaches into a next higher bracket. Langrock v. Department of Taxes, 139 Vt. 108, 423 A.2d 838, 1980 Vt. LEXIS 1491 (1980).

    Purpose.

    That tax imposed by this chapter taxes profits in sales of real property, to a decreasing degree as period of land retention increases and to an increasing degree as profit increases, is alone sufficient, for constitutional purposes, to support view that Legislature could have had as a purpose the deterrence of land speculation. Andrews v. Lathrop, 132 Vt. 256, 315 A.2d 860, 1974 Vt. LEXIS 330 (1974).

    Cited.

    Cited in State v. Zinn, 150 Vt. 278, 552 A.2d 413, 1988 Vt. LEXIS 156 (1988).

    § 10004. Sale or exchange.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 1973, No. 81 , § 8, eff. May 1, 1973; amended 1987, No. 64 , § 6, eff. June 1, 1987.

    History

    Amendments

    —1987. Subsec. (b): Added the fourth sentence.

    ANNOTATIONS

    Option to buy.

    Under this section taxing gains on the sale or exchange of land, and providing that “the transfer of an option for the sale or exchange of land shall be considered a transfer of title,” the taxable events are transfer or vesting of title, and the transfer of an existing opinion to a third party by the optionee, and where option to purchase was granted, and later exercised, it was the exercise, not the grant of the option, to which the tax applied. Harden v. Vermont Department of Taxes, 134 Vt. 122, 352 A.2d 685, 1976 Vt. LEXIS 610 (1976).

    Cited.

    Cited in In re Henry, 135 B.R. 6, 1991 Bankr. LEXIS 1863 (Bankr. D. Vt. 1991).

    Notes to Opinions

    Condemnations.

    Condemnations and other situations in which land is taken for a public purpose constitute a “sale or exchange of land” within the meaning of this section. 1972-74 Vt. Op. Att'y Gen. 142.

    § 10005. Basis, gain, and holding period.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. The taxable gain under this chapter from the sale or exchange of land shall not be reduced by any losses incurred in other transactions.
    6. 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.

    HISTORY: 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.

    History

    Revision note

    —2013. In subsec. (d), changed references to “husband and wife” to “two spouses” in accordance with 2009, No. 3 , § 12a.

    Amendments

    —1991 (Adj. Sess.). Subsec. (a): Deleted “(tax cost)” preceding “of land sold” and added “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” following “exchanged”.

    Subsec. (c): Deleted “(tax cost)” following “basis” in the first sentence.

    —1987. Subsec. (b): Inserted “reasonable” preceding “expenses” in the second sentence and added the third sentence.

    Subsec. (d): Inserted “or divorce” following “death”, deleted “surviving” preceding “spouse” and inserted “subsequently” thereafter in the third sentence and inserted “or land awarded to a spouse upon dissolution of marriage” following “surviving spouse” in the fourth sentence.

    —1983. Subsec. (d): Deleted the second sentence.

    —1979. Subsec. (d): Added the fourth sentence.

    —1977 (Adj. Sess.). Subsec. (f): Added.

    —1973 (Adj. Sess.). Subsec. (d): Second sentence rephrased and added fourth sentence.

    2009 statutory revision. 2009, No. 3 , § 12a provides: “The staff of the legislative council, in its statutory revision capacity, is authorized and directed to make such amendments to the Vermont Statutes Annotated as are necessary to effect the purpose of this act, including, where applicable, substituting the words ‘civil marriage’ for the word ‘marriage.’ Such changes shall be made when new legislation is proposed, or there is a republication of a volume of the Vermont Statutes Annotated.”

    § 10006. Liability for tax.

    1. 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.
    2. 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.
    3. 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.
    4. 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.

    HISTORY: 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.

    History

    Revision note—

    Substituted “ 10 V.S.A. § 2623(2) ” for “ 10 V.S.A. § 2623(a)(2) ” in subsec. (c) to correct an error in the reference.

    Amendments

    —2019. Subsec. (d): Added.

    —1995. Subsec. (c): Added.

    —1991 (Adj. Sess.). Section amended generally.

    —1983. Added the second and third sentences.

    2019 amendment. 2019, No. 71 , § 24(6) provides that § 17 of that act [which adds subsec. (d) of this section] shall take effect on January 1, 2020 and shall apply to gains from sales made on or after that date.

    ANNOTATIONS

    Application of amendments.

    Where sale of land occurred prior to the 1983 amendment of this section, sellers’ liability for the land gains tax accrued at the time of the sale, and the amendment could not be applied retroactively. State v. Zinn, 150 Vt. 278, 552 A.2d 413, 1988 Vt. LEXIS 156 (1988).

    Construction.

    Even though the transferor of land indicated on tax return that the amount of liability being transferred was “0”, purchasers were not absolved from liability because they were on full notice of the liability that would result if they did not meet the conditions of the principal residence exception, and the return clearly stated, “if buyer fails to comply with all necessary requirements for an exemption, buyer will be liable for tax.” Murphy v. Department of Taxes, 173 Vt. 571, 795 A.2d 1131, 2001 Vt. LEXIS 426 (2001) (mem.).

    A trustee in bankruptcy is a “transferor” as defined by this section and he is liable to pay the tax imposed on the gains from the sale or exchange of lands in Vermont. In re Henry, 135 B.R. 6, 1991 Bankr. LEXIS 1863 (Bankr. D. Vt. 1991).

    Cited.

    Cited in Department of Taxes v. Murphy, 2005 VT 84, 178 Vt. 269, 883 A.2d 779, 2005 Vt. LEXIS 171 (2005).

    § 10007. Withholding at source; payment.

    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.

    HISTORY: 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.

    History

    Amendments

    —1999. Subsec. (b): Substituted “45 days” for “15 days” in the third sentence.

    —1993. Subsec. (b): Deleted “by him” following “receipt” and substituted “established pursuant to section 3108 of this title” for “of one-half of one percent per month” following “rate” in the third sentence and inserted “or her” preceding “the commissioner” in the fourth sentence.

    ANNOTATIONS

    Action to recover taxes.

    By taxpayers’ invoking appeal rights, an assessment on land gains tax was not collectible until the final judgment of the appellate court; the statute of limitations began to run on the date of the final judgment on appeal, and, because the Department of Taxes commenced its action well within the statutory six-year time period, the trial court correctly found that the statute of limitations did not bar the Department’s claim against taxpayers. Department of Taxes v. Murphy, 2005 VT 84, 178 Vt. 269, 883 A.2d 779, 2005 Vt. LEXIS 171 (2005).

    Notes to Opinions

    Condemnations.

    Where land is condemned or otherwise taken for a public purpose, upon the payment of compensation, the State should withhold from the award that amount that constitutes the tax on capital gains from a sale or exchange of land under this chapter, and to that extent, this section’s requirement that transferee of the land to withhold and remit the tax modifies any statute requiring the State to pay compensation upon the taking of land for a public purpose. 1972-74 Vt. Op. Att'y Gen. 142.

    § 10008. Installment sales.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 1973, No. 81 , § 8, eff. May 1, 1973.

    History

    Revision note

    —2008. In subsec. (b), substituted “subsection 10007(b)” for “section 10007(b)” to conform reference to V.S.A. style.

    § 10009. Administration of tax.

    1. The Commissioner of Taxes shall administer and enforce this chapter and this tax.  He or she may issue, amend, and withdraw from time to time reasonable regulations to assist such administration and enforcement.
    2. 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.

    HISTORY: Added 1973, No. 81 , § 8, eff. May 1, 1973; amended 2009, No. 1 (Sp. Sess.), § H.46, eff. June 2, 2009.

    History

    Amendments

    —2009. Subsec. (b): Inserted “, and of chapter 103, including those relating to interest and penalty charges,” after “income tax.”

    CROSS REFERENCES

    Procedure for adoption of administrative rules, see 3 V.S.A. chapter 25.

    § 10010. Criminal penalties.

    1. 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.
    2. 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.
    3. [Repealed.]

    HISTORY: Added 1973, No. 81 , § 8, eff. May 1, 1973; amended 2017, No. 73 , § 31, eff. June 13, 2017.

    History

    Amendments

    —2017. Subsec. (c): Repealed.

    § 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.

    HISTORY: Added 1989, No. 222 (Adj. Sess.), § 41, eff. May 31, 1990.

    ANNOTATIONS

    Cited.

    Cited in In re Henry, 135 B.R. 6, 1991 Bankr. LEXIS 1863 (Bankr. D. Vt. 1991).

    Chapter 237. Tax on Hazardous Waste

    History

    Amendments

    —1997 (Adj. Sess.). 1997, No. 133 (Adj. Sess.), § 1, deleted “generation” following “waste” in the chapter heading.

    CROSS REFERENCES

    Waste management generally, see 10 V.S.A. chapter 159, subchapter 1.

    Law Reviews —

    For note relating to successor landowner liability for damages and cleanup costs for hazardous wastes deposited on property, see 10 Vt. L. Rev. 487 (1985).

    § 10101. Definitions.

    The following definitions shall apply throughout 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.

    HISTORY: Added 1985, No. 70 , § 7; amended 1987, No. 76 , § 18.

    History

    Amendments

    —1987. Subdiv. (6): Substituted “secretary of natural resources” for “secretary of environmental conservation”.

    § 10102. Powers of the Commissioner and Secretary.

    1. In addition to any other powers granted to the Commissioner and the Secretary in this chapter, they may:
      1. issue, amend, and repeal from time to time reasonable regulations 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.
    2. For cause shown, the Commissioner may authorize the Secretary to calculate the tax liability of any person on a monthly or more frequent basis.

    HISTORY: Added 1985, No. 70 , § 7; amended 1997, No. 133 (Adj. Sess.), § 2; 2009, No. 154 (Adj. Sess.), § 220.

    History

    Amendments

    —2009 (Adj. Sess.) Subdiv. (a)(5): Deleted “or district” following “superior” in two places in the third sentence.

    —1997 (Adj. Sess.). Substituted “handled” for “generated” in subdiv. (a)(4) and “person” for “generator” in subsec. (b).

    CROSS REFERENCES

    Procedure for adoption of administrative rules, see 3 V.S.A. chapter 25.

    Witness fees, see § 1551 of this title.

    § 10103. Tax imposed; exemptions.

    1. 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:
        1. 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;
        2. it is not generated by the owner or operator of the storage or collection facility;
        3. it has not been previously taxed in Vermont; and
        4. it has not been held onsite for more than 180 days.
    2. 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:
        1. the person shipping the previously taxed waste has not held the waste for more than 180 days; and
        2. 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.
    3. 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.
    4. 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.
    5. 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.

    HISTORY: 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.

    History

    Amendments

    —2003 (Adj. Sess.). Subsec. (b): Substituted “that” for “which” in subdiv. (5) and the introductory paragraph of subdiv. (6), deleted “or” following “onsite” in subdiv. (5), and added subdiv. (7).

    —1997 (Adj. Sess.). In subsec. (a), deleted the references to “reclaimed” and “recovered” and increased the rate of tax per gallon or per pound of hazardous waste destined for management in the state, other than recycling; in subsec. (b), noted the exemptions from the tax imposed by subsecs. (a) and (c), adding subdivs. (b)(5) and (6); in subsec. (c), designated subdiv. (1) and added subdiv. (2), which provide for persons meeting conditions of exemptions; in subsec. (d) specified the funds to which the tax imposed by this chapter shall be deposited; and added subsec. (e).

    —1995. Subdiv. (a)(1): Substituted “11” for “7” preceding “cents per gallon” and “01.4” for “00.9” preceding “cents per pound”.

    Subdiv. (a)(2): Substituted “22” for “14” preceding “cents per gallon” and “02.8” for “1.7” preceding “cents per pound”.

    Subdiv. (a)(3): Substituted “33” for “21” preceding “cents per gallon” and “04.2” for “02.6” preceding “cents per pound”.

    Subdiv. (a)(4): Substituted “44” for “28” preceding “cents per gallon” and “05.6” for “03.4” preceding “cents per pound”.

    —1989. Subdiv. (a)(1): Substituted “11” for “07” and “01.4” for “00.9”.

    Subdiv. (a)(2): Substituted “22” for “14” and “02.8” for “01.7”.

    Subdiv. (a)(3): Substituted “33” for “21” and “04.2” for “02.6”.

    Subdiv. (a)(4): Substituted “44” for “28” and “05.6” for “03.4”.

    Termination of 1989 (Adj. Sess.) amendment. Pursuant to 1989, No. 282 (Adj. Sess.), § 19, eff. June 22, 1990, three years after June 22, 1990, the tax rate established under subsec. (a) of this section, as amended by 1989, No. 282 (Adj. Sess.), § 6, reverted to the level existing in subsec. (a) of this section as originally enacted by 1985, No. 70 , § 7.

    § 10104. Duties of Secretary and Commissioner.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 1985, No. 7 , § 7; amended 1997, No. 133 (Adj. Sess.), § 4.

    History

    Amendments

    —1997 (Adj. Sess.). Substituted “person” for “generator” and “person’s” for “generator’s” wherever they appeared throughout the section.

    § 10105. Failure to pay tax; criminal penalties.

    1. 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 section 5875 of this title.
    2. 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.

    HISTORY: Added 1985, No. 70 , § 7; amended 1997, No. 133 (Adj. Sess.), § 5.

    History

    References in text.

    Section 5875 of this title, referred to in subsec. (a), was repealed pursuant to 1997, No. 156 (Adj. Sess.), § 37. The sections that now govern penalties and interest and notices of deficiencies and assessment are §§ 3202 and 3203 of this title.

    Amendments

    —1997 (Adj. Sess.). Subsec. (a): Substituted “person” for “generator”, inserted “imposed under this chapter” following “liability” and substituted “30” for “thirty”.

    Subsec. (b): Substituted “person” for “generator” and inserted “imposed under this chapter” following “liability”.

    § 10106. Notice of deficiency.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 1985, No. 70 , § 7; amended 1997, No. 50 , § 38, eff. June 26, 1997; 1997, No. 133 (Adj. Sess.), § 6.

    History

    Revision note

    —2021. In subsec. (c), deleted “, without limitation,” following “including” in the third sentence in accordance with 2013, No. 5 , § 4.

    Amendments

    —1997 (Adj. Sess.). Subsec. (b): Inserted “imposed under this chapter” following “liability” and deleted “similar” following “manifest or other”.

    —1997. Subsec. (c): Added.

    § 10107. Refunds.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 1985, No. 70 , § 7; amended 1997, No. 50 , § 39, eff. June 26, 1997.

    History

    Amendments

    —1997. Subsec. (a): Substituted “due” for “paid” following “tax is” in the first sentence and added the second sentence.

    § 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.

    HISTORY: Added 1985, No. 70 , § 7.

    § 10109. Determination by Commissioner.

    1. 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.
    2. 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.

    HISTORY: Added 1985, No. 70 , § 7; amended 1989, No. 222 (Adj. Sess.), § 38; 1997, No. 50 , § 40, eff. June 26, 1997.

    History

    Amendments

    —1997. Designated the existing provisions of the section as subsec. (a) and added subsec. (b).

    —1989 (Adj. Sess.). Substituted “60” for “thirty” in the first sentence.

    § 10110. Appeal process.

    1. 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.
    2. 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.

    HISTORY: Added 1985, No. 70 , § 7.

    CROSS REFERENCES

    Appeals from decisions of governmental agencies, see V.R.C.P. 74.

    § 10111. Payment and collection of deficiencies and assessments; jeopardy notices.

    1. 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.
    2. 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.

    HISTORY: 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.

    HISTORY: 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.

    HISTORY: Added 1985, No. 70 , § 7.

    Chapter 239. Games of Chance

    §§ 10201-10209. Repealed. 2017, No. 73, § 31(1), eff. September 1, 2017.

    History

    Former §§ 10201-10209. Former § 10201, relating to definitions pertaining to games of chance, was derived from 1991, No. 267 (Adj. Sess.), § 2 and amended by 1993, No. 183 (Adj. Sess.), § 7.

    Former § 10202, relating to required license, was derived from 1991, No. 267 (Adj. Sess.), § 2 and amended by 1993, No. 183 (Adj. Sess.), § 8.

    Former § 10203, relating to distribution; retail purchase and sale, was derived from 1991, No. 267 (Adj. Sess.), § 2 and amended by 1993, No. 183 (Adj. Sess.), § 9; 2003, No. 70 (Adj. Sess.), § 61 and 2017, No. 83 , § 159.

    Former § 10204, relating to license requirement and fees, was derived from 1991, No. 267 (Adj. Sess.), § 2.

    Former § 10205, relating to records and report, was derived from 1991, No. 267 (Adj. Sess.), § 2 and amended by 1993, No. 183 (Adj. Sess.), § 10.

    Former § 10206, relating to rules, was derived from 1991, No. 267 (Adj. Sess.), § 2.

    Former § 10207, relating to enforcement, was derived from 1991, No. 267 (Adj. Sess.), § 2.

    Former § 10208, relating to appeals, was derived from 1997, No. 156 (Adj. Sess.), § 27.

    Former § 10209, relating to rulemaking, was derived from 2013, No. 72 , § 34.

    Annotations From Former § 10203

    Cited.

    Cited in In re Con-Elec Corp., 168 Vt. 576, 716 A.2d 822, 1998 Vt. LEXIS 173 (1998) (mem.).

    Chapter 241. Health It-Fund

    § 10301. Health IT-Fund.

    1. 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.
    2. The Health IT-Fund shall be administered by the Secretary of Administration or his or her designee.
    3. Into the Fund shall be deposited:
      1. Subdivision (c)(1) repealed effective July 1, 2023.

        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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.

    HISTORY: 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, 2023.

    History

    Amendments

    —2013. Subdiv. (c)(1): Act 73, § 50 substituted “health care claims tax” for “reinvestment fee” preceding “imposed” and “subdivision 10402(b)(1) of this title” for “ 8 V.S.A. § 4089k ” following “pursuant to”.

    Subdiv. (c)(1): Act 50, § 52, effective July 1, 2017, deleted the subdiv.

    —2011. Subsec. (e): Deleted the former third and fourth sentences.

    Subsec. (f): Substituted “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” for “who shall then submit his or her recommendations on the plan to the health care reform commission” following “designee,”.

    Subsec. (g): Substituted “Green Mountain Care board” for “commission on health care reform by October 1” following “the”.

    Subsec. (h): Substituted “to the Green Mountain Care board” for “the health care reform commission” preceding “, including”.

    —2009 (Adj. Sess.) Subdiv. (c)(2): Substituted “department” for “office”.

    —2009. Subsec. (a): Substituted “secretary of administration or designee” for “Vermont Information Technology Leaders (VITL)” in the first sentence; inserted “loans and grants to health care providers pursuant to section 10302 of this chapter and for” after “used for” in the third sentence; substituted “health care and human service” for “primary care” in subdiv. (a)(1); in subdiv. (a)(3), inserted “, related public and mental health initiatives,” after “initiatives” and inserted “and community care team” after “home”; and substituted “health” for “medical” in subdiv. (a)(4).

    Prospective repeal of subdiv. (c)(1). 2021, No. 73 , § 14 provides that subdiv. (c)(1) shall be repealed on July 1, 2023. Previously, 2013, No. 73 , § 60(10) had provided for the repeal of subdiv. (c)(1) on July 1, 2017; 2017, No. 73 , § 14 had extended the date of that repeal until July 1, 2018; 2017, No. 187 (Adj. Sess.), § 5 had extended the date of that repeal until July 1, 2019; and 2019, No. 71 , § 21 had further extended the date of that repeal until July 1, 2021.

    § 10302. Certified Electronic Health Record Technology Loan Fund.

    1. 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.
    2. 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.
    3. 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.
    4. 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:
        1. the interest rate for each loan shall not exceed the market interest rate;
        2. 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
        3. 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.
    5. 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.
      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. (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.
    6. 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.

    HISTORY: 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. § 4084a ; student health insurance policies; and Medicare supplemental 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.

    HISTORY: Added 2013, No. 73 , § 48; amended 2017, No. 131 (Adj. Sess.), § 4, eff. May 16, 2018; 2019, No. 14 , § 83, eff. April 30, 2019.

    History

    Amendments

    —2019. Substituted “chapter” for “section” in the introductory paragraph.

    —2017 (Adj. Sess.). Subdiv. (1): Inserted “short-term, limited-duration health insurance policies and contracts as defined in 8 V.S.A. § 4084a ; student health insurance policies” in the second sentence.

    § 10402. Section 10402 effective until July 1, 2023; see also section 10402 effective July 1, 2023 set out below. Health care claims tax.

    1. 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.
    2. 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.
    3. 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.
    4. 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.

    HISTORY: 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, 2021; 2019, No. 6, § 73, eff. July 1, 2023.

    History

    Amendments

    —2019. Subdiv. (b)(2): Substituted “General Fund” for “State Health Care Resources Fund established in 33 V.S.A. 1901d”.

    Subsec. (c): Substituted “General Fund” for “State Health Care Resources Fund” preceding “in the same”.

    Retroactive effective date of amendments. 2019, No. 6 , § 105(a), provides “Notwithstanding 1 V.S.A. § 214 or any other act or provision, Secs. 64-72 (State Health Care Resources Fund), 74 ( 32 V.S.A. § 10503 ), 75 ( 33 V.S.A. § 1951 ), and 76 ( 33 V.S.A. § 1956 ) and Sec. 85 amending 16 V.S.A. § 2857 shall take effect on passage and apply retroactively to July 1, 2018.”

    § 10402. Section 10402 effective July 1, 2023; see also section 10402 effective until July 1, 2023 set out above. Health care claims tax.

    1. 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.
    2. Revenues paid and collected under this chapter shall be deposited into the General Fund.
    3. 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.
    4. 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.

    HISTORY: 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, 2021; 2019, No. 6, § 73, eff. July 1, 2023.

    History

    Editor’s note

    —2021. 2021, No. 73 , § 14 provided that the Health IT-Fund sunset, as amended by 2019, No. 71 , § 21, shall take effect on July 1, 2023. However, 2021, No. 73 , § 14 inadvertently omitted a reference to 2019, No. 6 , § 105(b) as amended by 2019, No. 71 , § 19.

    Amendments

    —2019. Subsec. (a): Substituted “0.8” for “0.999” preceding “of one percent” in the first sentence and substituted “on or before” for “by” preceding “January 1” in the second sentence.

    Subsec. (b): Substituted “into the General Fund” for “as follows:” in the introductory language and deleted former subdivs. (1) and (2).

    Subsec. (c): Deleted “the Vermont Health IT Fund and” preceding “the General Fund” and deleted “in the same proportion as revenues are deposited into those Funds” thereafter.

    —2013. Subsec. (a): Substituted “0.8” for “0.999” following “equal to”.

    Subsec. (b): Rewrote the subsec.

    Effective date of prospective amendments. 2021, No. 73 , § 14 provides that the amendments to the Health IT-Fund sunset shall take effect on July 1, 2023. Previously, 2013, No. 73 , § 53 would have made similar amendments to this section on July 1, 2017; 2017, No. 73 , § 14 extended the date of those amendments until July 1, 2018; and 2017, No. 187 (Adj. Sess.), § 5 extended the date of those amendments until July 1, 2019. 2019, No. 71 , §§ 20 and 21 repealed 2013, No. 73 , § 53 and eliminated the extensions of the 2013, No. 73, § 53 effective date. 2019, No. 71 , § 19, as amended by 2021, No. 83 (Adj. Sess.), § 75, further extended the date of those amendments until July 1, 2023.

    § 10403. Administration of tax.

    1. 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.
    2. 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.

    HISTORY: Added 2013, No. 73 , § 48.

    § 10404. Determination of deficiency, refund, penalty, or interest.

    1. 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.
    2. Any hearing granted by the Commissioner under this section shall be subject to and governed by 3 V.S.A. chapter 25.
    3. 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.

    HISTORY: Added 2013, No. 73 , § 48.

    Chapter 244. Requirement to Maintain Minimum Essential Coverage

    History

    Effective date of 2017 (Adj. Sess.) enactment. 2017, No. 182 (Adj. Sess.), § 5(a), effective May 28, 2018, provides that § 1 [which enacted this chapter] shall take effect on January 1, 2020.

    § 10451. Definitions.

    As used in this chapter:

    1. “Applicable individual” means, with respect to any month, an individual other than the following:
      1. an individual who is:
        1. 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
        2. 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;
      2. an individual not lawfully present in the United States; or
      3. 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.

    HISTORY: Added 2017, No. 182 (Adj. Sess.), § 1, eff. Jan. 1, 2020; amended 2019, No. 63 , § 1, eff. Jan. 1, 2020.

    History

    Amendments

    —2019. Section amended generally.

    Effective date and applicability of 2019 amendment. 2019, No. 63 , § 13(a), provided that § 1 of that act [which amended 32 V.S.A. chapter 244] shall take effect on January 1, 2020 and apply to taxable years 2020 and after.

    § 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.

    HISTORY: Added 2017, No. 182 (Adj. Sess.), § 1, eff. Jan. 1, 2020.

    History

    Penalty for failure to maintain minimum essential coverage; legislative intent. 2017, No. 182 (Adj. Sess.), § 2, effective May 28, 2018, provides: “It is the intent of the General Assembly that the individual mandate to maintain minimum essential coverage established by this act should be enforced by means of a financial penalty or other enforcement mechanism and that the enforcement mechanism or mechanisms should be enacted during the 2019 legislative session in order to provide notice of the penalty to all Vermont residents prior to the open enrollment period for coverage for the 2020 plan year.”

    § 10453. Reporting and documentation of coverage.

    1. 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.
    2. 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.
    3. 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.

    HISTORY: Added 2019, No. 63 , § 1, eff. Jan. 1, 2020.

    History

    Effective date and applicability of 2019 enactment. 2019, No. 63 , § 13, provided that § 1 of that act [which amended 32 V.S.A. chapter 244] shall take effect on January 1, 2020 and apply to taxable years 2020 and after.

    § 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.

    HISTORY: Added 2019, No. 63 , § 1, eff. Jan. 1, 2020.

    History

    Effective date and applicability of 2019 enactment. 2019, No. 63 , § 13, provided that § 1 of that act [which amended 32 V.S.A. chapter 244] shall take effect on January 1, 2020 and apply to taxable years 2020 and after.

    Chapter 245. Health Care Fund Contribution Assessment

    History

    Effective date and applicability of 2017 amendment. 2017, No. 73 , § 32(7) provides: “Secs. 16 and 17 (transferring employer assessment from the Department of Labor to the Department of Taxes) [which enacted this chapter consisting of §§ 10501-10505 of this title] and Sec. 31(5) (repeal) [which provides for the repeal of 21 V.S.A. §§ 2001-2004 ] shall take effect on January 1, 2018 with the return of the fourth quarter of 2017 being due on January 25, 2018.”

    § 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.

    HISTORY: Added 2017, No. 73 , § 16, eff. Jan. 1, 2018.

    § 10502. Definitions.

    As used in this chapter:

    1. “Employee” means an individual who is:
      1. 18 years of age or older for all of a calendar quarter;
      2. employed full-time or part-time; and
      3. 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.
      1. “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. (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.
      2. 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.
      3. “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.
    3. “Health care coverage” shall mean any private or public plan that includes both hospital and physician services.
    4. “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.
    5. “Seasonal employee” means an employee who:
      1. works for an employer for 20 weeks or fewer in a calendar year; and
      2. works in a job scheduled to last 20 weeks or fewer.
    6. “Uncovered employee” means:
      1. an employee of an employer who does not offer to pay any part of the cost of health care coverage for its employees;
      2. an employee who is not eligible for health care coverage offered by an employer to any other employees; or
      3. an employee who is offered and is eligible for coverage by the employer but elects not to accept the coverage and:
        1. is enrolled in Medicaid;
        2. has no other health care coverage under either a private or public plan except Medicaid; or
        3. has purchased health insurance coverage as an individual through the Vermont Health Benefit Exchange.

    HISTORY: Added 2017, No. 73 , § 16, eff. Jan. 1, 2018.

    § 10503. Health Care Fund contribution assessment.

    1. 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.
    2. 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.
    3. 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.
    4. Revenues from the Health Care Fund contributions collected shall be deposited into the General Fund.
      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. (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.

    HISTORY: Added 2017, No. 73 , § 16, eff. Jan. 1, 2018; amended 2019, No. 6 , § 74, eff. April 22, 2019.

    History

    Amendments

    —2019. Subsec. (b): Inserted “annually” following “adjusted”, and substituted “lowest-cost of all silver-level health benefit plans, whether offered in or outside the Vermont” for “lowest-cost silver-level plan in the Vermont” in the second sentence.

    Subsec. (d): Substituted “General Fund” for “State Health Care Resources Fund established under 33 V.S.A. § 1901d ”.

    Retroactive effective date of amendments. 2019, No. 6 , § 105(a), provides “Notwithstanding 1 V.S.A. § 214 or any other act or provision, Secs. 64-72 (State Health Care Resources Fund), 74 ( 32 V.S.A. § 10503 ), 75 ( 33 V.S.A. § 1951 ), and 76 ( 33 V.S.A. § 1956 ) and Sec. 85 amending 16 V.S.A. § 2857 shall take effect on passage and apply retroactively to July 1, 2018.”

    § 10504. Hours worked by uncovered employees; calculation and reporting.

    1. 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.
    2. 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.
        1. For full-time salaried employees, employers shall use 520 hours a quarter for the total hours worked.
        2. 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.
        1. 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.
        2. An employer shall maintain declarations of health care coverage for a minimum of three years in a manner reasonably available for review and audit.
        3. Employees for whom no declaration of coverage is obtained shall be treated as uncovered.
    3. 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.

    HISTORY: Added 2017, No. 73 , § 16, eff. Jan. 1, 2018.

    § 10505. Health benefit costs.

    1. 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.
    2. 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.

    HISTORY: Added 2017, No. 73 , § 16, eff. Jan. 1, 2018.