Imposition and Collection of Tax

V.S.A. tit. 32, ch. 225, subch. 2

in effect

32 V.S.A. § 9241 Imposition of tax

9241. Imposition of tax (a) An operator shall collect a tax of nine percent of the rent of each occupancy. (b) An operator shall collect a tax on the sale of each taxable meal at the rate of nine percent of each full dollar of the total charge and on each sale for less than one dollar and on each part of a dollar in excess of a full dollar in accordance with the following formula: $0.01-0.11 | $0.01 0.12-0.22 | 0.02 0.23-0.33 | 0.03 0.34-0.44 | 0.04 0.45-0.55 | 0.05 0.56-0.66 | 0.06 0.67-0.77 | 0.07 0.78-0.88 | 0.08 0.89-1.00 | 0.09 (c) An operator shall collect a tax on each sale of alcoholic beverages at the rate of 10 percent of each full dollar of the total charge and on each sale for less than one dollar and on each part of a dollar in excess of a full dollar in accordance with the following formula: $0.01-0.14 | $0.01 0.15-0.24 | 0.02 0.25-0.34 | 0.03 0.35-0.44 | 0.04 0.45-0.54 | 0.05 0.55-0.64 | 0.06 0.65-0.74 | 0.07 0.75-0.84 | 0.08 0.85-0.94 | 0.09 0.95-1.00 | 0.10 Added 1959, No. 217, § 6; amended 1963, No. 227, § 2; 1967; 1963, No. 346 (Adj. Sess.), § 1, eff. April 1, 1968; 1969, No. 144, § 16; 1983, No. 144 (Adj. Sess.), § 1, eff. June 1, 1984; 1989, No. 51; § 51b, eff. June 1, 1989; 1989, No. 210 (Adj. Sess.), § 294, eff. June 1, 1990; 1989, No. 222 (Adj. Sess.), § 16, eff. May 31, 1990; 1991, No. 32, § 18, eff. June 1, 1991; 1991, No. 32, § 20, eff. July 1, 1993; 1997, No. 60, § 69.

32 V.S.A. § 9242 Collection of meals and rooms tax by operator and imposition of gross receipts tax

9242. Collection of meals and rooms tax by operator and imposition of gross receipts tax (a) Each operator shall state the amount of tax to each occupant and each purchaser of a taxable meal and alcoholic beverage, and shall charge the tax for each rental, meal, or beverage, and shall demand and collect the tax from such occupant or purchaser. The occupant or purchaser shall pay the tax to the operator and each operator shall be liable for the collection thereof. (b) No operator shall advertise or hold out or state to the public or to any consumer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the price of taxable meals or beverages or the rent, or that, if added, it or any part thereof will be refunded. However, an operator may advertise the price of a taxable meal or beverage or the rent by stating the purchase price or rent charge with the words “plus tax,” or “exclusive of tax,” or “tax included.” The operator shall maintain his or her records to show separately the charge for taxable meals, beverages, and rent and the amount of tax paid thereon, and the operator, if requested, shall furnish the purchaser or occupant with a statement of the charges made showing the tax separately computed thereof. (c) A tax of nine percent of the gross receipts from meals and occupancies and 10 percent of the gross receipts from alcoholic beverages, exclusive of taxes collected pursuant to section 9241 of this title, received from occupancy rentals, taxable meals, and alcoholic beverages by an operator, is hereby levied and imposed and shall be paid to the State by the operator as herein provided. Every person required to file a return under this chapter shall, at the time of filing the return, pay the Commissioner the taxes imposed by this chapter as well as all other monies collected by him or her under this chapter; provided, however, that every person who collects the taxes on taxable meals and alcoholic beverages according to the tax bracket schedules of section 9241 of this title shall be allowed to retain any amount lawfully collected by the person in excess of the tax imposed by this chapter as compensation for the keeping of prescribed records and the proper account and remitting of taxes. Added 1959, No. 217, § 7; amended 1963, No. 227, § 3; 1964, No. 15 (Sp. Sess.), § 2, eff. April 1, 1964; 1967, No. 346 (Adj. Sess.), § 2, eff. April 1, 1968; 1971, No. 73, § 34, eff. April 16, 1971; 1983, No. 144 (Adj. Sess.), § 2, eff. June 1, 1984; 1989, No. 51, § 51c, eff. June 1, 1989; 1989, No. 210 (Adj. Sess.), § 295, eff. June 1, 1990; 1989, No. 222 (Adj. Sess.), § 17, eff. May 31, 1990; 1991, No. 32, § 19, eff. June 1, 1991; 1991, No. 32, § 21, eff. July 1, 1993; 1997, No. 60, § 70.

32 V.S.A. § 9243 Returns and payment

9243. Returns and payment (a) Where the meals and rooms tax liability under this chapter for the immediately preceding full calendar year has been, or would have been in cases when the business was not operating for the entire year, $500.00 or less, the gross receipts taxes imposed by this chapter shall be due and payable in quarterly installments on or before the 25th day of the calendar month succeeding the quarter ending the last day of March, June, September, and December of each year. In all other cases, the gross receipts tax imposed by this chapter shall be due and payable monthly on or before the 25th (23rd of February) day of the month following the month for which the tax is due. Pursuant to section 3110 of this title, the Commissioner may authorize payment of the tax due by electronic funds transfer. The Commissioner may require payment by electronic funds transfer from any taxpayer who is required by federal tax law to pay any federal tax in that manner or from any taxpayer who has submitted to the Department of Taxes two or more protested or otherwise uncollectible checks with regard to any State tax payment in the prior two years. Each operator shall make out and sign under the pains and penalties of perjury a return for each quarter or month. The return shall be filed with the Commissioner on a form prescribed by the Commissioner. The Commissioner shall distribute return forms to the operators, upon request, but no operator shall be excused from liability for failure to file a return or pay the tax because he or she has failed to receive a form. A remittance for the amount of taxes shall accompany each quarterly or monthly return. Returns shall be made on forms provided by the Commissioner. Payment of taxes by electronic funds transfer does not affect the requirement to file returns. (b) The Commissioner may require returns and amended returns to be filed within 20 days after notice and to contain the information specified in the notice. Upon failure of a taxpayer to file any return required under this chapter within 20 days of the date of a notice to the taxpayer, the Commissioner may petition a judge of the Superior Court in the county wherein the taxpayer resides or has a place of business or, if the taxpayer neither resides nor has a place of business in this State, the Commissioner may petition the Washington Superior Court, and upon the petition of the Commissioner and a hearing, the judge shall issue a citation requiring the taxpayer and, if the taxpayer is a corporation, any principal officer of such corporation, to file a proper return in accordance with this chapter, upon pain of contempt. The order of notice upon the petition shall be returnable not later than 20 days after the filing of the petition. The petition shall be heard and determined on the return day or on such day thereafter as the court shall fix, having regard to the speediest possible determination of the case consistent with the rights of the parties. The judgment shall include costs in favor of the prevailing party. The Commissioner’s authority to petition under this subsection is in addition to the Commissioner’s authority under section 9273 of this title to compute the tax liability of a taxpayer who fails to file a required return or files an incorrect or insufficient return. Added 1959, No. 217, § 8; amended 1963, No. 227, § 4; 1964, No. 15 (Sp. Sess.), § 3, eff. April 1, 1964; 1971, No. 73, § 35, eff. April 16, 1971; 1973, No. 42, § 3; 1975, No. 1 (Sp. Sess.), § 13, eff. April 1, 1976; 1989, No. 124 (Adj. Sess.), § 2, eff. Feb. 8, 1990; 1989, No. 225 (Adj. Sess.), § 25(b); 1991, No. 67, § 7, eff. June 19, 1991; 1991, No. 186 (Adj. Sess.), § 8(i), eff. May 7, 1992; 1997, No. 156 (Adj. Sess.), § 19, eff. April 29, 1998; 2007, No. 190 (Adj. Sess.), § 25, eff. June 6, 2008; 2017, No. 73, § 5, eff. June 13, 2017; 2021, No. 73, § 7.

32 V.S.A. § 9244 Optional dates; extensions

9244. Optional dates; extensions The Commissioner may, upon written request and for good cause shown, authorize an operator whose books and records are not kept on a calendar month basis or whose hotel or establishment for the sale of taxable meals is operated only during certain seasons of the year to file returns at other times than those specified in section 9243 of this title and in lieu of the returns, but except in the case of seasonal hotels and eating establishments, no taxpayer shall be permitted to make less than four returns during a year. The Commissioner may, if the Commissioner believes the action is necessary where collection of the tax may be in jeopardy, require an operator to file returns and pay taxes under this chapter at any time or from time to time. Except as to the time of filing and the period covered, all the provisions as to returns required by sections 3201, 9202, 9241–9243, 9271, and 9272 of this title shall be applicable to returns made under this section and a remittance for the tax due shall accompany any return filed under this section. The Commissioner may, on written application and for good cause shown, extend the time for making any return required by this chapter. Added 1959, No. 217, § 9; amended 2021, No. 105 (Adj. Sess.), § 582, eff. July 1, 2022.

32 V.S.A. § 9245 Overpayment; refunds

9245. Overpayment; refunds (a) Upon application by an operator, if the Commissioner determines that any tax, interest, or penalty has been paid more than once, or has been erroneously or illegally collected or computed, the same shall be credited by the Commissioner on any taxes then due from the operator under this chapter, and the balance shall be refunded to the operator or the operator’s successors, administrators, executors, or assigns, together with interest at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title. That interest shall be computed from the latest of 45 days after the date the return was filed, 45 days after the date the return was due, including any extensions of time thereto, with respect to which the excess payment was made, or, if the taxpayer filed an amended return or otherwise requested a refund, 45 days after the date such amended return or request was filed. Provided, however, no such credit or refund shall be allowed after three years from the date the return was due. (b) An operator must prove the following to be eligible for a refund under this section: (1) that the tax was erroneously or illegally collected or computed; and (2) that any erroneously or illegally collected or computed tax is or will be returned to the purchaser, unless the operator made the overpayment. (c) A purchaser may seek a refund from the Department if the purchaser establishes that the tax was erroneously or illegally collected or computed. The Commissioner shall refund a purchaser in the same manner as under subsection (a) of this section. Added 1959, No. 217, § 10; amended 1975, No. 154 (Adj. Sess.), § 5, eff. date, see note below; 1979, No. 105 (Adj. Sess.), § 32; 1983, No. 59, § 5, eff. April 22, 1983; 2015, No. 57, § 90, eff. June 11, 2015; 2023, No. 72, § 5, eff. June 19, 2023.

32 V.S.A. § 9247 Hospital and medical service corporations and credit unions

9247. Hospital and medical service corporations and credit unions Notwithstanding 8 V.S.A. §§ 4518, 4590, and 30901, hospital service corporations, medical service corporations, and credit unions shall be subject to the meals and rooms tax. The statutory purpose of the remaining exemptions in 8 V.S.A. § 4518 is to lower the cost of health services to Vermonters. The statutory purpose of the remaining exemptions in 8 V.S.A. § 4590 is to lower the cost of health services to Vermonters. The statutory purpose of the remaining exemptions in 8 V.S.A. § 30901 is to affirm the nonprofit, cooperative structure of credit unions. Added 2013, No. 200 (Adj. Sess.), § 4.

32 V.S.A. § 9248 Informational reporting

9248. Informational reporting The Department of Taxes may collect information on operators from persons providing an internet platform for the short-term rental of property for occupancy in this State. The information collected shall include any information the Commissioner requires, and the name, address, and terms of the rental transactions of persons acting as operators through the internet platform. The failure to provide information as required under this section shall subject the person operating the internet platform to a fine of $5.00 for each instance of failure. The Commissioner is authorized to adopt rules and procedures to implement this section. Added 2015, No. 134 (Adj. Sess.), § 21a, eff. July 1, 2017; amended 2019, No. 175 (Adj. Sess.), § 12, eff. Oct. 8, 2020; 2021, No. 105 (Adj. Sess.), § 583, eff. July 1, 2022.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/32/225Fetched: 10/21/2026