Enforcement and Penalties

V.S.A. tit. 32, ch. 233, subch. 4

in effect

32 V.S.A. § 9811 Proceedings to recover tax

9811. Proceedings to recover tax (a) Whenever any person required to collect tax shall fail to collect or pay over any tax, penalty, or interest imposed by this chapter or whenever any customer shall fail to pay any tax, penalty, or interest, the Attorney General shall, upon the request of the Commissioner, enforce the payment thereof on behalf of the State in any court of the State or of any other state of the United States. (b) As an additional or alternate remedy, the Commissioner may issue a warrant directed to the sheriff of any county commanding him or her to levy upon and sell the real and personal property of any person liable for the tax, which may be found within his or her county, for the payment of the amount thereof, with any penalties and interest and the cost of executing the warrant, and to return the warrant to the Commissioner and to pay to him or her the money collected by virtue thereof within 60 days after the receipt of the warrant. The sheriff shall within five business days after the receipt of the warrant file with the county clerk a copy thereof, and thereupon the clerk shall enter in the judgment docket the name of the person mentioned in the warrant and the amount of the tax, penalties, and interest for which the warrant is issued, and the date when the copy is filed. Thereupon the amount of the warrant so docketed shall become a lien upon the title to and interest in real and personal property of the person against whom the warrant is issued. The sheriff shall then proceed upon the warrant, in the same manner and with like effect as that provided by law in respect to executions issued against property upon judgments of a court of record and, for services in executing the warrant, he or she shall be entitled to the same fees, which he or she may collect in the same manner. If a warrant is returned not satisfied in full, the Commissioner may from time to time issue new warrants and shall also have the same remedies to enforce the amount due thereunder as if the State had recovered judgment therefor and execution thereon had been returned unsatisfied. Added 1969, No. 144, § 1, eff. June 1, 1969; amended 2017, No. 11, § 63.

32 V.S.A. § 9812 Actions for collection of tax

9812. Actions for collection of tax (a) Action may be brought by the Attorney General at the instance of the Commissioner in the name of the State to recover the amount of taxes, penalties, and interest due from such vendor, provided such action is brought within six years after the same are due. Such action shall be returnable in the county where the vendor resides, if a resident of the State; and if a nonresident, the action shall be returnable to Washington County. The limitation of six years in this section shall not apply to a suit to collect taxes, penalties, interest, and costs when the vendor filed a fraudulent return or failed to file a return when the same was due. (b) The courts of this State shall recognize and enforce liabilities for taxes lawfully imposed by any other state, upon sales and use taxes, which extends a like comity to this State, and the duly authorized officer of that state may sue for the collection of the tax in the courts of this State. A certificate by the Secretary of State of the other state that an officer suing for the collection of a tax is duly authorized to collect it shall be conclusive proof of this authority. (c) As used in this section, the words “tax” and “taxes” shall include interest and penalties due under this chapter, and liability for interest or penalties, or both, due under a taxing statute of another state shall be recognized and enforced by the courts of this State to the same extent that the laws of the other state permit the enforcement in its courts of liability for interest or penalties, or both, due under this chapter. Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1993, No. 49, § 18, eff. May 28, 1993.

32 V.S.A. § 9813 Presumptions and burden of proof

9813. Presumptions and burden of proof (a) For the purpose of the proper administration of this chapter and to prevent evasion of the tax hereby imposed, it shall be presumed that all receipts for property or services of any type mentioned in section 9771 of this title are subject to tax until the contrary is established, and the burden of proving that any receipt or amusement charge is not taxable hereunder shall be upon the person required to collect tax. (b) The certificate of the Commissioner to the effect that a tax has not been paid; that a return, bond, or registration certificate has not been filed; or that information has not been supplied under this chapter shall be presumptive evidence thereof. Added 1969, No. 133 § 1, eff. June 1, 1969; amended 2017, No. 74, § 140b.

32 V.S.A. § 9814 Repealed. 1997, No. 156 (Adj. Sess.), § 37, eff. January 1, 1999.

32 V.S.A. § 9814a Criminal penalties

9814a. Criminal penalties (a) Any person who knowingly fails to file a return, fails to collect a tax, or fails to remit a tax required under this subchapter shall be imprisoned not more than one year or fined not more than $1,000.00, or both. (b) Any person who with intent to evade a tax liability fails to file a return or fails to collect a tax or fails to remit a tax when required under this subchapter shall, if the amount collected or required to be collected is in excess of $500.00, be imprisoned not more than three years or fined not more than $10,000.00, or both. (c) Any person filing or causing to be filed, or making or causing to be made, or giving or causing to be given any certificate, affidavit, representation, information, testimony, or statement, required or authorized, that is willfully false, or willfully failing to file a bond, or failing to file a registration certificate and data in connection with it as the Commissioner by rule or otherwise may require, to display or surrender a license as required, or assigning or transferring the license, or willfully failing to charge separately the tax imposed under this chapter or to state the tax separately on any bill, statement, memorandum, or receipt issued or employed by the person upon which the tax is required to be stated separately as provided in section 9778 of this title, or referring or causing reference to be made to this tax in a form or manner other than that required, or failing to keep any records required, shall, in addition to any other penalties under this chapter or elsewhere prescribed, be guilty of a misdemeanor, punishable by a fine of not more than $1,000.00 or imprisonment for not more than one year, or both. (d) Any person who knowingly makes, signs, verifies, or files with the Commissioner a false or fraudulent tax return shall be imprisoned not more than one year or fined not more than $1,000.00, or both. Any person who with intent to evade a tax liability makes, signs, verifies, or files with the Commissioner a false or fraudulent tax return shall, if the amount of tax evaded is in excess of $500.00, be imprisoned not more than three years or fined not more than $10,000.00, or both. (e) A person who knowingly engages in any business for which registration is required under this chapter without a valid license shall commit a separate offense for each calendar week or part of the week during which the person shall be so engaged. Each offense shall be a misdemeanor and upon conviction for a first offense, a person shall be sentenced to pay a fine of not more than $250.00 or to be imprisoned for not more than 60 days, or both, the fine and imprisonment in the discretion of the court, and for a second or subsequent offense shall be sentenced to pay a fine of not less than $250.00 or more than $500.00 or to be imprisoned for not more than six months, or both, the fine and imprisonment in the discretion of the court. Added 1999, No. 49, § 65, eff. June 2, 1999; amended 2003, No. 70 (Adj. Sess.), §§ 57, 58, eff. March 1, 2004; 2021, No. 105 (Adj. Sess.), § 598, eff. July 1, 2022.

32 V.S.A. § 9815 Notice and limitations of time

9815. Notice and limitations of time (a) Any notice under this chapter may be given by mailing it to the person for whom it is intended in a postpaid envelope addressed to that person at the address given in the last return filed by him or her under this chapter or in any application made by him or her or, if no return has been filed or application made, then to any address obtainable. The mailing of the notice shall be presumptive evidence of its receipt by the person to whom addressed. Any period of time that is determined under this chapter by the giving of notice shall commence to run from the date of mailing of the notice. (b) The provisions of law relating to limitations of time for the enforcement of a civil remedy shall not apply to any proceeding or action taken by the State or the Commissioner to levy, appraise, assess, determine, or enforce the collection of any tax or penalty under this chapter. However, except in the case of a willfully false or fraudulent return with intent to evade the tax, no assessment of additional tax shall be made after the expiration of more than three years from the later of the date of the filing of a return or the date a return is due; provided, however, that when no return has been filed as provided by law, the tax may be assessed at any time; and further provided that where tax collected under this chapter has been under-reported by 20 percent or more, such tax may be assessed at any time before the expiration of six years from the date of the filing of the return. (c) When, before the expiration of the period prescribed herein for the assessment of an additional tax, a taxpayer has consented in writing that the period be extended, the amount of the additional tax due may be determined at any time within the extended period. The period so extended may be further extended by subsequent consents in writing made before the expiration of the extended period. If a taxpayer has consented in writing to the extension of the period for assessment, the period for filing an application for credit or refund pursuant to section 9781 of this title shall not expire prior to six months after the expiration of the period within which an assessment may be made pursuant to the consent to extend the time for assessment of additional tax. Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1989, No. 119, §§ 11, 15, eff. June 22. 1989.

32 V.S.A. § 9816 Suspension or revocation of certificates; appeal

9816. Suspension or revocation of certificates; appeal (a) The Commissioner may, after notice and hearing, suspend or revoke the license of any person required to collect the tax or may refuse to issue or renew any registration for failure to comply with this chapter or with any pertinent rules adopted under this chapter. (b) Any person required to collect the tax aggrieved by a suspension, revocation, or refusal may appeal to any Superior judge within 10 days after written notice of the suspension, revocation, or refusal has been mailed or delivered to the person. The Superior judge or another Superior judge designated by the Chief Superior Judge shall hear the appeal immediately. (c) If the appealing person required to collect the tax files with the Superior judge to whom the person appeals a bond running to the State with a surety company authorized to do business in this State as surety in a sum as the Superior judge shall fix, conditioned upon the payment of all taxes due under this chapter and to become due during the pendency of the appeal, then the suspension or revocation shall be inoperative during the appeal. (d) On an appeal from the refusal of the Commissioner to issue or renew a certificate of authority, the Commissioner shall issue or renew the registration during the pendency of the appeal if the bond under subsection (c) of this section is filed. (e) Upon suspension or revocation, or in the case of an unregistered business, the Commissioner may cause to be posted, at every public entrance of the vendor’s premises, a notice identifying the vendor and the location and informing the public that the vendor has no certificate or the certificate has been suspended or revoked, as the case may be, and that no retail sales or amusement charges may be made at that location. No person shall cover or deface the posted notice, and the posted notice shall not be removed until the certificate is reinstated, or a new certificate is issued for the location, or removal is otherwise authorized by the Commissioner. Whoever violates the terms of this subsection shall be assessed a penalty of $500.00, and the Commissioner shall give notice of such assessment and make demand for payment. Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1979, No. 181 (Adj. Sess.), § 21; 1991, No. 186 (Adj. Sess.), § 41, eff. May 7, 1992; 1993, No. 49, § 20, eff. May 28, 1993; 1995, No. 29, § 22, eff. April 14, 1995; 1997, No. 50, § 37, eff. June 26, 1997; 2003, No. 70 (Adj. Sess.), § 59, eff. March 1, 2004; 2021, No. 105 (Adj. Sess.), § 599, eff. July 1, 2022; 2021, No. 147 (Adj. Sess.), § 31, eff. May 31, 2022.

32 V.S.A. § 9817 Review of Commissioner’s decision

9817. Review of Commissioner’s decision (a) Any aggrieved taxpayer may, within 30 days after any decision, order, finding, assessment, or action of the Commissioner made under this chapter, appeal to the Washington Superior Court or the Superior Court of the county in which the taxpayer resides or has a place of business. (b) The appeal provided by this section shall be the exclusive remedy available to any taxpayer for review of a decision of the Commissioner determining the liability of the taxpayer for the taxes imposed. (c) [Repealed.] Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1997, No. 161 (Adj. Sess.), § 24, eff. Jan. 1, 1998; 2011, No. 143 (Adj. Sess.), § 51, eff. May 15, 2012; 2019, No. 51, § 14, eff. June 10, 2019.

32 V.S.A. § 9818 Liens

9818. Liens If any person required to pay or collect and transmit a tax under this chapter neglects or refuses to pay the same after demand, the amount, together with all penalties and interest provided for in this chapter and together with any costs that may accrue in addition thereto, shall be a lien in favor of the State of Vermont upon all property and rights to property, whether real or personal, belonging to such person. Such lien shall arise at the time demand is made by the Commissioner of Taxes and shall continue until the liability for such sum with interest and costs is satisfied or becomes unenforceable. Such lien shall have the same force and effect as the lien for taxes under chapter 151 of this title, as provided in section 5895 of this title, and notice of such lien shall be recorded as is provided in that section. Certificates of release of such lien shall also be given by the Commissioner as in the case of the aforesaid tax liens. Added 1973, No. 165 (Adj. Sess.), § 2, eff. March 20, 1974.

32 V.S.A. § 9819 Reallocation of receipts

9819. Reallocation of receipts (a) Receipts from the tax imposed by this chapter on sales of construction materials used in qualified projects under 24 V.S.A. chapter 76A shall be allocated by the Commissioner of Taxes and paid to the municipality in which the project is located as follows: (1) in a municipality in which the population is 7,500 residents or less, all receipts from sales in excess of $100,000.00 of construction materials used in each separate qualified project located in that municipality; (2) in a municipality in which the population is greater than 7,500 residents but fewer than 30,000 residents, all receipts from sales in excess of $200,000.00 of construction materials used in each separate qualified project located in that municipality; and (3) in a municipality in which the population is more than 30,000 residents, all receipts from sales in excess of $1,000,000.00 of construction materials used in each separate qualified project located in that municipality. (b)(1) Beginning in fiscal year 2007, the Vermont Downtown Development Board, established under 24 V.S.A. § 2792, may certify for allocation to municipalities sales tax revenues under this section, so that the total shall not exceed $1,500,000.00, when considered together with the following: (A) credits awarded under subsections 5930cc(a) and (b) of this title, concerning qualified historic rehabilitation projects and qualified façade improvement projects; and (B) credits awarded under subsection 5930cc(c) of this title, concerning qualified code improvement projects. (2) A total annual allocation of no more than 30 percent of these tax credits in combination with sales tax reallocation may be awarded in connection with all of the projects in a single municipality. (c) As used in this section: (1) “Construction materials” means all materials purchased by the owner or owner’s representative, project manager, construction manager, general contractor, or subcontractor to be incorporated into a qualified project. (2) “Qualified project” means expansion or rehabilitation of contiguous real property that is or will be used at the completion of the expansion or rehabilitation as a structure in a downtown development district designated under 24 V.S.A. chapter 76A, but only to the extent that the expansion or rehabilitation becomes an integral component of the real property and the project does not seek qualification for either tax credit authorized under subsection 5930cc(a) or (b) of this title. “Qualified project” also means new construction of contiguous real property that will be used at the completion of the construction as a structure in a downtown development district designated under 24 V.S.A. chapter 76A, but only to the extent that the new construction is compatible with the buildings that contribute to the integrity of the district in terms of materials, features, size, scale and proportion, and massing of buildings. (d) The allocation shall be determined as follows: (1) The municipality and the owner of the qualified project shall submit to the Board a joint application for a reallocation of the sales taxes generated by the qualified project. The application shall describe the project to be constructed and shall include an estimate of the taxable cost of construction materials that will be used in the qualified project. The estimate shall be based upon the successful bid documents. (2) The Board shall review the joint application. If the project meets the requirements of this section and the requested allocation does not exceed the statutory limit set by this section, the Board shall approve the application and forward it to the Commissioner of Taxes who may authorize an allocation up to the approved amount. Fifty percent of the authorized allocation shall be paid to the municipality when construction is 50 percent complete as determined by the Board, and the balance shall be paid after completion of the project. (3) Tax revenues allocated to a municipality under this section shall be used by the municipality only for expenditures related to the support of the qualified project that generated those revenues. Added 1997, No. 71 (Adj. Sess.), § 51a; amended 1997, No. 120 (Adj. Sess.), § 1b; 2001, No. 114 (Adj. Sess.), § 12, eff. May 28, 2002; 2001, No. 114 (Adj. Sess.), § 17, eff. July 1, 2003; 2005, No. 14, § 9; 2005, No. 75, § 13; 2005, No. 183 (Adj. Sess.), § 13.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/32/233Fetched: 10/21/2026