Enforcement and Penalties

V.S.A. tit. 32, ch. 225, subch. 3

in effect

32 V.S.A. § 9271 Licenses required

9271. Licenses required Each operator prior to commencing business shall register with the Commissioner each place of business within the State where he or she operates a hotel or sells taxable meals or alcoholic beverages; provided, however, that an operator who sells taxable meals through a vending machine shall not be required to hold a license for each individual machine, and a booking agent shall not be required to hold a separate license for each property the rental of which it facilitates. Upon receipt of an application in such form and containing such information as the Commissioner may require for the proper administration of this chapter, the Commissioner shall issue without charge a license for each such place in such form as he or she may determine, attesting that such registration has been made. No person shall engage in serving taxable meals or alcoholic beverages or renting hotel rooms without the license provided in this section. The license shall be nonassignable and nontransferable and shall be surrendered to the Commissioner if the business is sold or transferred or if the registrant ceases to do business at the place named. Added 1959, No. 217, § 4; amended 1971, No. 73, § 36, eff. April 16, 1971; 1981, No. 11; 1991, No. 186 (Adj. Sess.), § 20, eff. May 7, 1992; 2015, No. 57, § 89; 2019, No. 71, § 8; 2019, No. 131 (Adj. Sess.), § 297.

32 V.S.A. § 9272 Suspension and revocation of licenses; appeal

9272. Suspension and revocation of licenses; appeal (a) The Commissioner may, after notice and hearing, suspend or revoke the license of any operator or may refuse to issue or renew any such registration for failure to comply with the provisions of this chapter or with all pertinent rules and regulations of the Commissioner promulgated hereunder. (b) Any operator aggrieved by such suspension, revocation, or refusal may appeal therefrom to any Superior judge within 10 days after written notice of such suspension, revocation, or refusal has been mailed or delivered to the operator. Such Superior judge or another Superior judge designated by the Chief Superior Judge shall hear such appeal forthwith. (c) If such appealing operator files with the Superior judge to whom he or she appeals a bond running to the State with a surety company authorized to do business in this State as surety in such sum as the Superior judge shall fix, conditioned upon the payment of all taxes due under this chapter and to become due during the pendency of such appeal, then during the pendency of any such appeal to the Superior judge, the suspension or revocation so appealed from shall be inoperative. (d) In the case of an appeal from the refusal of the Commissioner to issue or renew a registration, the Commissioner shall issue or renew such registration during the pendency of the appeal if the aforesaid bond is given. (e) Upon suspension or revocation, or in case of an unlicensed business, the Commissioner may cause to be posted, at every public entrance of the operator’s premises, a notice identifying the operator and the location and informing the public that the operator has no license or the license has been suspended or revoked, as the case may be, and that no rooms may be offered to the public for occupancy for a consideration or taxable meals or alcoholic beverages sold at that location as those terms are defined in this chapter. No person shall cover or deface the posted notice, and the posted notice shall not be removed until the license is reinstated or a new license issued for the location, or removal is otherwise authorized by the Commissioner. Whoever violates the terms of this subsection shall be assessed a penalty of $500.00. The Commissioner shall give notice of such assessment and make demand for payment. Added 1959, No. 217, § 5; amended 1979, No. 181 (Adj. Sess.), § 20; 1991, No. 186 (Adj. Sess.), § 40, eff. May 7, 1992; 1995, No. 29, § 20, eff. April 14, 1995; 1997, No. 50, § 26, eff. June 26, 1997; 2021, No. 147 (Adj. Sess.), § 30, eff. May 31, 2022.

32 V.S.A. § 9273 Assessment of additional tax

9273. Assessment of additional tax (a) If any operator shall fail to make a return as herein required, the Commissioner may make an estimate of the tax liability of the operator from any information he or she may obtain and, according to such estimate so made by him or her, assess the taxes, interest, and penalty due the State from such person, give notice of such assessment to the person, and make demand upon him or her for payment. (b) After a return is filed under the provisions of this chapter, the Commissioner shall cause the same to be examined, and may make such further audits or investigation as he or she may deem necessary, and if he or she shall determine that there is a deficiency with respect to the payment of any tax due under this chapter, he or she shall assess the taxes and interest due the State, give notice of such assessment to the person liable, and make demand upon him or her for payment, but no such assessment shall be made after the later of three years from the date the return was filed or three years from the date the return was required to be filed, unless such return was fraudulent. When, before the expiration of the period prescribed herein for the assessment of an additional tax, a taxpayer has consented in writing that the period may be extended, the amount of the additional tax due may be determined at any time within the extended period. The period so extended may be further extended by subsequent consents in writing made before the expiration of the extended period. If the taxpayer has consented in writing to the extension of the period for assessment, the period for filing an application for credit or refund pursuant to section 9245 of this title shall likewise be extended for the same period of time. Notwithstanding the foregoing, where an operator under-reports tax collected under this chapter by 20 percent or more, the Commissioner may assess such tax at any time before the expiration of six years from the date the return was filed. (c) If the Commissioner finds that an operator liable for a tax designs quickly to depart from this State, or to remove his property therefrom, or to conceal himself or herself or his or her property, or to discontinue business, or to do any other act tending to prejudice or to render wholly or partially ineffective proceedings to collect such tax, unless such proceedings be brought without delay, the Commissioner shall cause notice of such finding to be given such operator, together with a demand for an immediate return and immediate payment of such tax. If return and payment are not made upon demand, the Commissioner may make an estimate of the tax liability of such person from any information he or she may obtain and, according to such estimate, assess the taxes due the State from such person. The Commissioner shall give notice of said assessment and demand payment thereof, and such assessment shall be presumed to be correct, the burden showing otherwise being on the operator; thereupon, the tax shall become immediately due and payable. The Attorney General may at the same time, without delay, bring suit for the collection of the tax. Added 1959, No. 217, § 11; amended 1971, No. 73, § 37, eff. April 16, 1971; 1975, No. 154 (Adj. Sess.), § 6, eff. date, see note below; 1989, No. 119, §§ 10, 12, 14, eff. June 22, 1989.

32 V.S.A. § 9274 Petition for reconsideration

9274. Petition for reconsideration Any operator against whom an assessment shall be made by the Commissioner under the provisions of subsection 9272(e) or section 9273 of this title, and any person aggrieved by the refusal of the Commissioner to make a refund requested under section 9245 of this title, may petition for a reconsideration within 60 days after notice shall have been given such person as provided in this chapter. If a petition for reconsideration is not filed within the 60-day period, the amount of the assessment or the refusal to refund becomes final at the expiration thereof as to law and fact. If a petition for a reconsideration is filed within the 60-day period, the Commissioner shall reconsider the assessment or the refusal and, if the petitioner so requested in his or her petition, shall grant said petitioner an oral hearing and shall give the petitioner 10 days’ notice of the time and places thereof. For a cause shown, the Commissioner may extend the time for filing such petition. If appeal is not taken as provided in section 9275 of this title, the assessment or the refusal to refund upon reconsideration becomes final as to law and fact at the expiration of the 60-day period therein allowed for taking of appeals. The remedies provided by this section and section 9275 of this title shall be the exclusive remedies of a taxpayer for contesting an assessment under sections 9272 and 9273 of this title and denial of a refund under section 9245 of this title. Added 1959, No. 217, § 12; amended 1975, No. 154 (Adj. Sess.), § 7, eff. date, see note below; 1979, No. 105 (Adj. Sess.), § 33; 1989, No. 222 (Adj. Sess.), § 36; 1991, No. 186 (Adj. Sess.), § 42, eff. May 7, 1992.

32 V.S.A. § 9275 Appeals

9275. Appeals Any person aggrieved by the decision of the Commissioner upon petition provided for in section 9274 of this title may, within 30 days after notice thereof from the Commissioner, appeal to the Superior Court of any county in which the person has a place of business subject to this chapter. Such appeals shall be preferred cases for hearing on the docket. The court may grant such relief as may be equitable and may order the State Treasurer to pay to the aggrieved taxpayer the amount of such relief with interest at the rate established pursuant to section 3108 of this title. Upon all such appeals that are denied, costs may be taxed against the appellant at the discretion of the court, but no costs shall be taxed against the State. Added 1959, No. 271, § 13; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1991, No. 186 (Adj. Sess.), § 21, eff. May 7, 1992; 1997, No. 50, § 27, eff. June 26, 1997; 1997, No. 161 (Adj. Sess.), § 23, eff. Jan. 1, 1998; 2019, No. 51, § 13, eff. June 10, 2019.

32 V.S.A. § 9276 Hearings

9276. Hearings (a) The Commissioner may conduct hearings, administer oaths to, and examine under oath any person, including the operator, relative to the business of the operator, in respect to any matter incident to the administration of this chapter. The provisions of this chapter shall also apply to any person who the Commissioner has reason to believe is liable for payment of the tax under this chapter. (b) The Commissioner shall have the power to compel the attendance of witnesses and the production of any books, records, papers, vouchers, accounts, or documents of any operator, or of any person the Commissioner has reason to believe is liable for the payment of the tax under this chapter, or of any person believed to have information pertinent to any matter under investigation by the Commissioner at any hearing held pursuant to the provisions of this chapter. The fees of witnesses required to attend any such hearing shall be the same as those allowed the witnesses appearing in the Superior Court, but no fees shall be payable to a witness charged with a meals and rooms tax liability. Such fees shall be paid in the manner provided for the payment of other expenses incident to the administration of this chapter. (c) Any examination under oath conducted by the Commissioner may, in his or her discretion, be reduced to writing and willful false testimony therein shall be deemed perjury and be punishable as such. (d) [Repealed.] Added 1959, No. 217, § 14; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1983, No. 230 (Adj. Sess.) § 17(8).

32 V.S.A. § 9277 Repealed. 1975, No. 154 (Adj. Sess.), § 15.

32 V.S.A. § 9278 Repealed. 1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.

32 V.S.A. § 9279 Violations

9279. Violations (a) Failure to file; failure to collect; failure to remit. An operator who knowingly fails to file a return, fails to collect a tax, or fails to remit a tax required under this chapter shall be imprisoned not more than one year or fined not more than $1,000.00, or both. (b) Failure to file; failure to collect; failure to remit in excess of $500.00. An operator who with intent to evade a tax liability fails to file a return, fails to collect a tax, or fails to remit a tax required under this chapter shall, if the amount collected or required to be collected is more than $500.00, be imprisoned not more than three years or fined not more than $10,000.00, or both. (c) False or fraudulent return. An operator who knowingly makes, signs, verifies, or files with the Commissioner a false or fraudulent return shall be imprisoned not more than one year or fined not more than $1,000.00, or both. An operator who with intent to evade a tax liability makes, signs, verifies, or files with the Commissioner a false or fraudulent return shall, if the amount of tax evaded is more than $500.00, be imprisoned not more than three years or fined not more than $10,000.00, or both. (d) Violation of this chapter. Any operator who knowingly violates the provisions of this chapter or rules adopted by the Commissioner under this chapter relative to the tax on meals, alcoholic beverages, and rooms shall be guilty of a misdemeanor and upon conviction for a first offense shall be sentenced to pay a fine of not more than $250.00 or to be imprisoned for not more than 60 days, or both, the fine and imprisonment in the discretion of the court; and for a second or subsequent offense shall be sentenced to pay a fine of not less than $250.00 or more than $500.00 or be imprisoned for not more than six months, or both, the fine and imprisonment in the discretion of the court. (e) Separate offense for each week of operating without valid registration license. For the purpose of this section, every operator required to obtain a license under section 9271 of this title who is engaged in any business for which registration is required under section 9271 of this title without being the holder of a currently valid registration license shall commit a separate offense for each calendar week or part of the week during which the operator shall be so engaged. Added 1959, No. 217, § 18; amended 1963, No. 227, § 5; 1987, No. 48, § 10; 1991, No. 186 (Adj. Sess.), § 23, eff. May 7, 1992; 2021, No. 105 (Adj. Sess.), § 584, eff. July 1, 2022.

32 V.S.A. § 9280 Taxes as personal debt to State; action to collect taxes; limitations

9280. Taxes as personal debt to State; action to collect taxes; limitations (a) Any operator who fails to collect the required tax or to pay it to the Commissioner as required under this chapter shall be personally and individually liable for the amount of such tax together with such interest and penalty as has accrued under the provisions of section 3202 of this title, and if the operator is a corporation or other entity, the personal liability shall extend and be applicable to any officer or agent of the corporation or entity who, as an officer or agent of the same, is under a duty to collect the tax and transmit the tax to the Commissioner as required in this chapter. (b) Any sum or sums collected in accordance with this chapter shall be deemed to be held by the person in trust for the State of Vermont. Such sums shall be recorded by such person in a ledger account so as clearly to indicate the amount of tax collected and that the same are the property of the State of Vermont. (c) Action may be brought by the Attorney General at the instance of the Commissioner in the name of the State to recover the amount of taxes, penalties, and interest due from any person responsible for the same under this chapter, provided such action is brought within six years after the same are due or six years after the date the liability becomes final, whichever is later. Such action shall be returnable to the county where the person resides or has a place of business, and if the person is a nonresident with no place of business in the State, the action shall be returnable to Washington County. The limitation of six years in this section shall not apply to a suit to collect taxes, penalties, interest, and costs when the person filed a fraudulent return or failed to file a return when the same was due. (d) As an additional or alternate remedy, the Commissioner may issue a warrant directed to the sheriff of any county commanding him or her to levy upon and sell the real and personal property of any person liable for the tax, which may be found within his or her county, for the payment of the amount thereof, with any penalties and interest, and the cost of executing the warrant, and to return the warrant to the Commissioner and to pay to him or her the money collected by virtue thereof within 60 days after the receipt of the warrant. The sheriff shall, within five business days after the receipt of the warrant, file with the county clerk a copy thereof, and thereupon the clerk shall enter in the judgment docket the name of the person mentioned in the warrant, and the amount of the tax, penalties, and interest for which the warrant is issued, and the date when the copy is filed. Thereupon, the amount of the warrant so docketed shall become a lien upon the title to and interest in real and personal property of the person against whom the warrant is issued. The sheriff shall then proceed upon the warrant in the same manner and with like effect as that provided by law in respect to executions issued against property upon judgments of a court of record, and for services in executing the warrant he or she shall be entitled to the same fees, which he or she may collect in the same manner. If a warrant is returned not satisfied in full, the Commissioner may from time to time issue new warrants and shall also have the same remedies to enforce the amount due thereunder as if the State had recovered judgment therefor and execution thereon had been returned unsatisfied. Added 1959, No. 217, § 21; amended 1963, No. 227, § 6; 1975, No. 154 (Adj. Sess.), § 14, eff. after June 30, 1976; 1991, No. 186 (Adj. Sess.), § 24, eff. May 7, 1992; 1997, No. 50, § 28, eff. June 26, 1997; 1999, No. 49, § 61, eff. June 2, 1999; 2003, No. 70 (Adj. Sess.), § 54, eff. March 1, 2004; 2017, No. 11, § 62.

32 V.S.A. § 9281 Taxes as property lien

9281. Taxes as property lien If any operator required to pay and transmit a tax under this chapter neglects or refuses to pay the same after demand, the amount, together with all penalties and interest provided for in this chapter and together with any costs that may accrue in addition thereto, shall be a lien in favor of the State of Vermont upon all property and rights to property, whether real or personal, belonging to such operator. Such lien shall arise at the time demand is made by the Commissioner of Taxes and shall continue until the liability for such sum with interest and costs is satisfied or becomes unenforceable. Such lien shall have the same force and effect as the lien for taxes withheld under the withholding provisions of the Vermont income tax law, as provided under section 5895 of this title, and notice of such lien shall be recorded as is provided in that section. Certificates of release of such lien shall also be given by the Commissioner as in the case of the aforesaid tax liens. Added 1959, No. 217, § 22; amended 1963, No. 227, § 7.

32 V.S.A. § 9282 Short-term rental operators

9282. Short-term rental operators (a) A short-term rental operator shall post the corresponding meals and rooms tax account number on any advertisement for the short-term rental. (b) The Department shall disseminate the information packet prepared by the Department of Health pursuant to 18 V.S.A. § 4468 to a short-term rental operator when the operator first registers a unit. Added 2018, No. 10 (Sp. Sess.), § 2; amended 2021, No. 105 (Adj. Sess.), § 585, eff. July 1, 2022.

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