Administration

V.S.A. tit. 32, ch. 103, subch. 2

in effect

32 V.S.A. § 3201 Administration of taxes

3201. Administration of taxes (a) Commissioner authority. In the administration of taxes, the Commissioner may: (1) Adopt, amend, and enforce reasonable rules and orders in administering the taxes within the Commissioner’s jurisdiction. (2) Delegate to any officer or employee in the Department powers the Commissioner deems necessary to carry out efficiently the tax provisions within the Commissioner’s jurisdiction. (3) Hold hearings, administer oaths, and examine under oath any person relating to that person’s business or relating to any matter within the Commissioner’s jurisdiction. (4) For the purpose of ascertaining the correctness of any return or making a determination of the tax liability of any taxpayer, examine or cause to be examined by any agent or representative designated by the Commissioner for that purpose any books, papers, records, or memoranda of the taxpayer bearing upon the matters required to be included in any return. The Commissioner or the Commissioner’s designated officers may require the attendance of the taxpayer or of any other person having knowledge in the premises at any place in the county where the taxpayer or person resides or has a place of business or in Washington County if the taxpayer is a nonresident individual, estate, or trust, or is a corporation or business entity not having a place of business in this State; may take testimony and require proof material; and may administer oaths or take acknowledgment in respect of any return or other information required by this title or the rules and decisions of the Commissioner. If an individual, estate, trust, corporation, or other business entity fails after request to provide books, records, or memoranda at either its place of business within the State or Washington County, the Commissioner may charge the person a reasonable per diem fee and expenses for the auditor making the examination out of state. The charges shall be payable within 30 days after the date billed and may be collected in the manner provided for the collection of taxes in this title. (5) Upon making a record of the reasons therefor, waive, reduce, or compromise any of the taxes, penalties, interest, or other charges or fees within the Commissioner’s jurisdiction. (6) Determine the form in which returns and reports shall be filed and what shall constitute a signature on returns and reports, including those filed in other than paper form, such as electronically or over telephone lines. (7) Assess, determine, revise, and readjust the taxes imposed in this title. (8) In cases in which payment of taxes is allowed or required by electronic funds transfer, allow up to six additional days for payment. (9) Attach property pursuant to section 3207 of this title for payment of an amount collectible by the Commissioner under this title any time after 90 days have run from the end of any applicable administrative appeal period on the underlying tax liability. (10) Garnish earnings pursuant to section 3208 of this title for payment of an amount collectible by the Commissioner under this title any time after 90 days have run from the end of any applicable administrative appeal period on the underlying tax liability. (b) Reciprocal enforcement. (1) At the request of the Commissioner, the Attorney General may bring suit in the name of this State in the appropriate court of any other state to collect any tax legally due this State. (2) The courts of this State shall recognize and enforce liabilities for taxes lawfully imposed by any other state that extends a like comity to this State, and the duly authorized officer of that state may sue for the collection of such a tax in the courts of this State. A certificate by the Secretary of State of the other state that an officer suing for collection of such a tax is duly authorized to collect it shall be conclusive proof of this authority. (3) As used in this section, the words “tax” and “taxes” include interest, fees, and penalties due under any taxing statute, and liability for the interest, fees, and penalties due under a taxing statute of another state shall be recognized and enforced by the courts of this State to the same extent that the laws of the other state permit the enforcement in its courts of liability for the interest, fees, and penalties due under a taxing statute of this State. (c) Reciprocal tax agreements. The Commissioner may enter into reciprocal agreements with the taxing authorities of other states, territories, provinces of Canada, countries, or the District of Columbia regarding the administration of taxes. (d) Tax return due dates. When the due date for the filing of a return falls on a federal or State holiday, the due date shall be the next business day after such holiday. A return that is filed by mail shall be accepted as timely filed if: (1) it is received by the Department within three business days after the due date; or (2) the taxpayer provides proof satisfactory to the Commissioner that the return was mailed by the due date. (e) Agreements with certified service providers. The Commissioner may enter into agreements with certified service providers, sellers using certified automated systems, and voluntary sellers for monetary allowances. The tax required to be paid to the Department shall be net of monetary allowances. (1) The allowance for a certified service provider shall be funded entirely from money collected by the provider and shall be either a base rate applied to taxable transactions processed by the provider or, for a period not to exceed 24 months following a voluntary seller’s registration through the streamlined sales tax agreement central registration process, a percentage of tax revenue generated for the State for which the seller does not have a requirement to register to collect the tax, or both. (2) The allowance for a seller using a certified automated system shall be for a period not to exceed 24 months following a seller’s voluntary registration and may include a base rate applied to taxable transactions and a percentage of tax revenue generated for the State for which the seller does not have a requirement to register to collect the tax. (3) The allowance for a voluntary seller shall be for a period not to exceed 24 months following a seller’s voluntary registration and shall be based on a percentage of tax revenue generated for the State for which the seller does not have a requirement to register to collect the tax. Added 1991, No. 186 (Adj. Sess.), § 7, eff. May 7, 1992; amended 1993, No. 49, § 2, eff. May 28, 1993; 1995, No. 169 (Adj. Sess.), §§ 1, 2, eff. May 15, 1996; 1999, No. 49, §§ 41, 43, eff. June 2, 1999; 2003, No. 152 (Adj. Sess.), § 21, eff. date, see note below; 2007, No. 81, § 3, eff. July 1, 2008; 2009, No. 160 (Adj. Sess.), § 4, eff. June 4, 2010; 2015, No. 57, § 41; 2019, No. 14, § 76, eff. April 30, 2019; 2021, No. 105 (Adj. Sess.), § 501, eff. July 1, 2022; 2023, No. 6, § 373, eff. July 1, 2023.

32 V.S.A. § 3202 Interest and penalties

3202. Interest and penalties (a) Failure to pay; interest. When a taxpayer fails to pay a tax liability imposed by this title (except the motor vehicle purchase and use tax) on the prescribed date of payment, the Commissioner may assess and the taxpayer shall then pay a sum of interest computed at the rate per annum established by the Commissioner pursuant to section 3108 of this title on the unpaid amount of that tax liability for the period from the prescribed date to the date of full payment of the liability. (b) Penalties. (1) Failure to file. When a taxpayer fails to file a tax return required by this title (other than a return required by chapter 151, subchapter 5 of this title for estimation of nonwithheld income tax), on the prescribed date of payment or the date as extended pursuant to section 5868 of this title, unless the taxpayer affirmatively shows that the failure is due to reasonable cause and not due to willful neglect, then in addition to any interest payable pursuant to subsection (a) of this section, the Commissioner may assess and the taxpayer shall then pay a penalty that shall be equal to five percent of the outstanding tax liability for each month, or portion thereof, that the tax return is not filed; provided, however, that in no event shall the amount of any penalty imposed under this subdivision exceed 25 percent of the tax liability unpaid on the prescribed date of payment. If the return is not filed within 60 days after the prescribed date of payment, there shall be assessed a minimum penalty of $50.00 regardless of whether there is a tax liability. (2) Failure to pay estimated tax. When a taxpayer fails to make payments as required by chapter 151, subchapter 5 or 5A of this title (estimations of nonwithheld income tax and quarterly filing and payment), the Commissioner may assess and the taxpayer shall then pay a penalty that shall be equal to one percent of the outstanding tax liability for each month, or portion thereof, that the tax liability is not paid in full; provided, however, that in no event shall the amount of any penalty assessed under this subdivision exceed 25 percent of the tax liability unpaid on the prescribed date of payment. (3) Failure to pay. When a taxpayer fails to pay a tax liability imposed by this title (other than a return required by chapter 151, subchapter 5 or 5A of this title for estimation of nonwithheld income tax and quarterly filing and payment) on the prescribed date of payment, then in addition to any interest payable pursuant to subsection (a) of this section, the Commissioner may assess and the taxpayer shall then pay a penalty that shall be equal to, for income tax under chapter 151, subchapters 2 and 3 of this title, one percent and, for all other taxes, five percent of the outstanding tax liability for each month, or portion thereof, that the tax liability is not paid in full; provided, however, that in no event shall the amount of any penalty assessed under this subdivision exceed 25 percent of the tax liability unpaid on the prescribed date of payment. (4) Negligent failure to pay. When a taxpayer fails to pay a tax liability imposed by this title and the failure is due to negligence or constitutes a substantial understatement of tax, in addition to any interest payable pursuant to subsection (a) of this section, the Commissioner may assess and the taxpayer shall then pay a penalty that shall be equal to 25 percent of that portion of the underpayment. For purposes of this subdivision, “negligence” means any failure to make a reasonable attempt to comply with the provisions of the tax code and “substantial understatement” means an understatement of 20 percent or more of the tax. (5) Fraudulent failure to pay. When a taxpayer fraudulently or with willful intent to defeat or evade a tax liability imposed by this title fails to pay a tax liability on the prescribed date of payment, requests and receives a refund of a tax liability, or requests but does not receive a refund of a tax liability, then, in addition to any interest payable pursuant to subsection (a) of this section, the Commissioner may assess and the taxpayer shall then pay a penalty equal to the amount of the tax liability unpaid on the prescribed date of payment, the amount received as a refund subsequent to that date, or the amount requested but not received as a refund. (6) Violation based on income from illegal activity. The penalties provided in subdivisions (1)–(5) of this subsection shall be doubled if the violation is based on income derived from illegal activity. The penalty provided in this subdivision shall be in addition to any other civil or criminal penalties provided by law. (7) Penalty limitation. A failure to pay shall not be subject to more than one of the penalties set forth in subdivisions (3), (4), and (5) of this subsection. Added 1997, No. 156 (Adj. Sess.), § 35, eff. April 29, 1998; amended 2001, No. 140 (Adj. Sess.), §§ 9, 11, eff. June 21, 2002; 2013, No. 76, § 6; 2019, No. 175 (Adj. Sess.), § 22, eff. Oct. 8, 2020; 2021, No. 105 (Adj. Sess.), § 502, eff. July 1, 2022; 2021, No. 179 (Adj. Sess.), § 4, eff. Jan. 1, 2022; 2023, No. 6, § 374, eff. July 1, 2023.

32 V.S.A. § 3203 Notice of deficiencies; assessment of penalties and interest; denial of refund

3203. Notice of deficiencies; assessment of penalties and interest; denial of refund If the Commissioner finds that any taxpayer has failed to discharge in full the amount of any tax liability incurred under this title or has claimed a refund in error or that a penalty or interest should be assessed under this title, the Commissioner shall notify the taxpayer of the deficiency or denial of refund or assess the penalty or interest, as the case may be, by mail. The mailing of the notice shall be presumptive evidence of its receipt by the person to whom it is addressed. Any period of time that is determined under this chapter by the giving of notice shall commence to run from the date of mailing of the notice. Added 1997, No. 156 (Adj. Sess.), § 36, eff. April 29, 1998; amended 2007, No. 190 (Adj. Sess.), § 20, eff. June 6, 2008.

32 V.S.A. § 3204 Processing fee

3204. Processing fee A manual processing fee of $25.00 may be assessed against any taxpayer who files or on whose behalf is filed an unacceptable return or against any paid preparer who files an unacceptable return on behalf of a taxpayer. An unacceptable return is one that is not on a form issued by or approved by the Commissioner or that requires the Department to take steps in addition to its normal processing procedures to process. The Department may reduce any refund due the taxpayer by the amount of the fee. Added 1997, No. 156 (Adj. Sess.), § 38, eff. April 29, 1998.

32 V.S.A. § 3205 Taxpayer Advocate

3205. Taxpayer Advocate (a) There is established within the Department of Taxes an Office of the Taxpayer Advocate. (b) The Taxpayer Advocate shall have the following functions and duties: (1) identify subject areas where taxpayers have difficulties interacting with the Department of Taxes; (2) identify classes of taxpayers or specific business sectors who have common problems related to the Department of Taxes; (3) propose solutions, including administrative changes to practices and procedures of the Department of Taxes; (4) recommend legislative action as may be appropriate to resolve problems encountered by taxpayers; (5) educate taxpayers concerning their rights and responsibilities under Vermont’s tax laws; (6) educate tax professionals concerning the Department of Taxes’ rules and interpretations by issuing bulletins and other written materials; and (7) assist individual taxpayers in resolving disputes with the Department of Taxes. (c) The Taxpayer Advocate shall prepare an annual report detailing the actions the Taxpayer Advocate has taken to improve taxpayer services and the responsiveness of the Department of Taxes. The report shall identify the problems encountered by taxpayers in interacting with the Department of Taxes and include specific recommendations for administrative and legislative actions to resolve those problems. The report shall identify any problems that span an entire class of taxpayer or specific industry and propose class- or industry-wide solutions. The report of the Taxpayer Advocate shall be submitted to the Senate Committee on Finance and the House Committee on Ways and Means on or before January 15 of each year. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the required report to be made under this subsection. (d) [Repealed.] Added 2011, No. 45, § 36e, eff. May 24, 2011; amended 2011, No. 143 (Adj. Sess.), § 6, eff. May 15, 2012; 2015, No. 131 (Adj. Sess.), § 8; 2021, No. 20, § 263; 2021, No. 105 (Adj. Sess.), § 503, eff. July 1, 2022.

32 V.S.A. § 3206 Recommendation for extraordinary relief

3206. Recommendation for extraordinary relief (a) The Taxpayer Advocate may make a written recommendation for extraordinary relief to the Commissioner under the provisions of this section. A recommendation for extraordinary relief may be made only in response to a request from a taxpayer and after a thorough investigation of the taxpayer’s circumstances by the Taxpayer Advocate that results in findings by the Taxpayer Advocate that: (1) Vermont tax laws apply to the taxpayer’s circumstances in a way that is unfair and unforeseen or that results in significant hardship; and (2) the taxpayer has no available appeal rights or administrative remedies to correct the issue that led to such unfair result or hardship. (b) As used in this section, “extraordinary relief” means a remedy that is within the power of the Commissioner to grant under this title, a remedy that compensates for the result of inaccurate classification of property as homestead or nonhomestead pursuant to section 5410 of this title through no fault of the taxpayer, or a remedy that makes changes to a taxpayer’s property tax credit or renter credit claim necessary to remedy the problem identified by the Taxpayer Advocate. (b) As used in this section, “extraordinary relief” means a remedy that is within the power of the Commissioner to grant under this title, a remedy that compensates for the result of inaccurate classification of property as homestead or nonhomestead pursuant to section 5410 of this title through no fault of the taxpayer, or a remedy that makes changes to a taxpayer’s homestead property tax exemption, municipal property tax credit, or renter credit claim necessary to remedy the problem identified by the Taxpayer Advocate. (c) Notwithstanding any other provision of law, if, in response to the Taxpayer Advocate’s recommendation, the Commissioner determines that the taxpayer should receive a refund or other monetary adjustment, the Commissioner shall certify that amount to the Commissioner of Finance and Management who shall issue his or her warrant in favor of the taxpayer for payment by the Treasurer from the appropriate fund. (d) A recommendation for extraordinary relief shall be in writing, shall be addressed to the Commissioner, and shall include a description of the problem sought to be remedied along with specific recommendations to the Commissioner. The Taxpayer Advocate’s decision to make or not make a recommendation for extraordinary relief shall be final and not subject to review. (e) The Commissioner may choose to act on the recommendation of the Taxpayer Advocate, not act on the recommendation, or act on part of the Taxpayer Advocate’s recommendation, and the Commissioner’s decision shall be final and not subject to any further review. Nothing in this section shall be construed to limit any other power or authority granted to the Commissioner in this title. Added 2011, No. 143 (Adj. Sess.), § 8; amended 2019, No. 160 (Adj. Sess.), § 8, eff. Jan. 1, 2021; 2025, No. 73, § 56, contingently eff. July 1, 2029.

32 V.S.A. § 3207 Administrative attachment

3207. Administrative attachment (a) Notwithstanding other statutes that provide for levy of execution, trustee process, and attachment, the Commissioner, pursuant to this section, may attach tangible and intangible property of a taxpayer to satisfy amounts collectible by the Commissioner under this title by transmitting a notice of attachment to a financial institution or person holding property belonging to or owed to a taxpayer. (b) The Commissioner may contact a financial institution to obtain verification of the account number, the names, and Social Security numbers listed for an account, and account balances of accounts held by a delinquent taxpayer. A financial institution is immune from any liability for release of this information to the Commissioner. (c) At least 30 days prior to attaching a taxpayer’s property, the Commissioner shall demand payment from the taxpayer together with notice that the taxpayer is subject to attachment of property under this section. This notice shall be sent by first-class mail to the taxpayer’s last known address. The mailing of the notice shall be presumptive evidence of its receipt. (d) A notice of attachment shall direct the financial institution or person to transmit all or a portion of the property in the taxpayer’s accounts or owed to the taxpayer to the Commissioner up to the amount owed to the Commissioner. The notice shall identify the taxpayer by Social Security number or federal employer identification number. Upon receipt of the notice, the financial institution or person forthwith shall remit the amount stated in the notice or the amount held or owned by such financial institution or person, whichever is less, to the Commissioner. Notwithstanding the foregoing, any financial institution shall surrender any deposits in such bank only after 21 days after transmittal of the notice of attachment. During the 21-day hold period, the financial institution shall not release the attached funds to the taxpayer unless the Commissioner releases the attachment. A financial institution is immune from any liability due to compliance with the Commissioner’s notice of attachment. (e) A copy of the notice of attachment transmitted to the financial institution or person holding property due to the taxpayer shall be sent by certified mail to the taxpayer at the time it is transmitted to the financial institution or person. The taxpayer may, within 15 days of mailing, petition the Commissioner in writing for a hearing under this section. The Commissioner shall grant a hearing on the matter as provided in subsection 5885(a) of this title at which the taxpayer bears the burden of proof. The Commissioner shall notify the taxpayer in writing of his or her decision concerning the attachment and the taxpayer may appeal in the manner provided in subsection 5885(b) of this title, which shall be the taxpayer’s exclusive remedy with respect to an attachment under this section. (f) At a hearing under this section, the taxpayer may raise the following claims relating to the proposed attachment: (1) whether the notice of attachment has identified the wrong taxpayer; (2) whether the proposed attachment includes property that would be exempt from attachment and levy under 12 V.S.A. § 2740 in a judicial attachment; (3) the statute of limitations to collect the liability expired before the notice of attachment was sent; and (4) the taxpayer may propose a collection alternative, including a payment plan or offer in compromise, but only if there has been a change in the taxpayer’s Vermont tax liability based on a change in his or her federal tax liability since the Vermont liability was assessed. (g) The hearing under this section shall be conducted by an officer or employee who is not an employee of the Compliance Division of the Department of Taxes. (h) If a hearing is requested in a timely manner under this section, the attachment shall be suspended and the financial institution shall not release the attached funds for the period during which the appeal is pending. (i) After a hearing, the taxpayer may propose a collection alternative, including a payment plan or offer in compromise, but only if there has been a change in the taxpayer’s federal tax liability or on a change in the amount that is subject to attachment as a result of the hearing. (j) Attachment under this section and other collection measures provided by law are cumulative. (k) The Commissioner forthwith shall notify the financial institution in writing and the financial institution shall cease attachment: (1) upon full payment of the amounts collectible by the Commissioner; or (2) when the attachment exceeds the amount permissible under 12 V.S.A. § 2740. (l) A determination under subdivision 5888(1) of this title will be reflected in the amounts collectible by the Commissioner. (m) As used in this section: (1) “Financial institution” includes financial institutions as defined in 8 V.S.A. § 11101(32) and credit unions as defined in 8 V.S.A. § 30101(5). (2) “Intangible property” means property that has no intrinsic value but is merely the representative of value, such as cash, accounts, rents, stocks, bonds, promissory notes, or other instruments that create a payment obligation. (3) “Person” has the same meaning as in section 3001 of this title. (n) The Commissioner shall contract with an outside independent organization or enter into a memorandum of understanding with a different State agency to provide advocate services to taxpayers subject to the provisions of this section. The organization or agency providing the services shall be independent of the Department of Taxes. The advocate services provided under this subsection shall include technical assistance and representation in the administrative processes and hearings under this section. Added 2015, No. 57, § 42.

32 V.S.A. § 3208 Administrative garnishment

3208. Administrative garnishment (a) Notwithstanding other statutes that provide for levy or execution, trustee process, or attachment, the Commissioner may garnish a taxpayer’s earnings pursuant to this section to satisfy amounts collectible by the Commissioner under this title, subject to the exemptions provided in 12 V.S.A. § 3170(a) and (b)(1). (b) The Commissioner may contact an employer to obtain verification of a delinquent taxpayer’s employment, earnings, deductions, and payment frequency as necessary to determine disposable earnings. The employer shall be immune from any liability for release of this information to the Commissioner. (c) At least 30 days prior to initiating wage garnishment, the Commissioner shall demand payment from the taxpayer and notify the taxpayer that he or she is subject to garnishment under this section. This notice shall be sent by first-class mail to the taxpayer’s last known address. The mailing of notice shall be presumptive evidence of receipt. (d) After 30 days, a notice of garnishment shall be sent by certified mail to the taxpayer, and the taxpayer may, within 15 days of mailing, petition the Commissioner in writing for a hearing under this section. The Commissioner shall grant a hearing on the matter as provided in subsection 5885(a) of this title at which the taxpayer bears the burden of proof. The Commissioner shall notify the taxpayer in writing of his or her decision concerning the garnishment and the taxpayer may appeal in the manner provided in subsection 5885(b) of this title. This shall be the taxpayer’s exclusive remedy with respect to a garnishment under this section. (e) If, after 15 days, the taxpayer has not petitioned for a hearing, a notice of garnishment shall direct an employer to transmit a specified portion of the taxpayer’s disposable earnings to the Commissioner from each periodic payment that is due to the taxpayer until the taxpayer’s obligation is paid in full. The notice shall identify the taxpayer by Social Security number. An employer is immune from any liability due to compliance with the Commissioner’s notice of garnishment. (f) If a hearing is requested in a timely manner under this section, the garnishment that is the subject of the requested hearing shall be suspended for the period during which such appeal is pending. Fifteen days after an appeal is resolved, the notice of garnishment shall direct an employer to transmit a specified portion of the taxpayer’s disposable earnings to the Commissioner from each periodic payment that is due to the taxpayer until the taxpayer’s obligation is paid in full. The notice shall identify the taxpayer by Social Security number. (g) At a hearing under this section, the taxpayer may raise any relevant issue relating to the unpaid tax or the proposed attachment: (1) whether the notice of garnishment has identified the wrong taxpayer; (2) whether the garnishment exceeds the exemption amount, which shall be 80 percent of the debtor’s weekly disposable earnings or 40 times the federal minimum hourly wage, whichever is greater; (3) whether the garnishment exceeds the amount permissible under 12 V.S.A. § 3170(a); or (4) the statute of limitations to collect the liability expired before the notice of attachment was sent. (h) The hearing under this section shall be conducted by an officer or employee who is not an employee of the Compliance Division of the Department of Taxes. (i) An employer’s obligation to transmit garnished wages to the Commissioner shall begin with the first periodic payment of earnings following receipt of the notice of garnishment unless the notice is withdrawn by the Commissioner. An employer who fails to withhold and transmit the garnished earnings to the Commissioner shall be liable for such amounts and may be assessed in the same manner as withholding taxes are assessed under chapter 151 of this title. As soon as reasonably practicable, the employer shall notify the Commissioner of the termination of the taxpayer’s employment. No taxpayer may be discharged from employment on account of garnishment under this section against the taxpayer’s wages. (j) The Commissioner forthwith shall notify the employer in writing and the employer shall cease withholding from the earnings of the taxpayer: (1) upon full payment of the amounts collectible by the Commissioner; or (2) when the garnishment exceeds the amount permissible under 12 V.S.A. § 3170(a) and (b)(1). (k) Wage garnishment under this section and other collection measures provided by law are cumulative. (l) A determination under subdivision 5888(1) of this title will be reflected in the amounts collectible by the Commissioner. (m) As used in this section: (1) “Disposable earnings” means that part of the earnings of any individual remaining after the deduction from those earnings of any amounts required by law to be withheld and the amount of any wage garnishment payable to the Office of Child Support. (2) “Earnings” means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus, or otherwise, and includes periodic payments pursuant to a pension or retirement program and proceeds from the sale of milk with respect to an individual engaged in the occupation of farming, but does not include payments from sources that by law are exempt from attachment. (n) The Commissioner shall contract with an outside independent organization or enter into a memorandum of understanding with a different State agency to provide advocate services to taxpayers subject to the provisions of this section. The organization or agency providing the services shall be independent of the Department of Taxes. The advocate services provided under this subsection shall include technical assistance and representation in the administrative processes and hearings under this section. Added 2015, No. 57, § 43; amended 2015, No. 134 (Adj. Sess.), § 2, eff. May 25, 2016.

32 V.S.A. § 3209 Tax Computer System Modernization Fund

3209. Tax Computer System Modernization Fund (a) The Tax Computer System Modernization Fund #21909, as established in the State Treasury per 2007 Acts and Resolves No. 65, Sec. 282 as amended, is a special fund to support information technology improvements and initiatives of the Department of Taxes. Balances in the Fund shall be administered by the Department of Taxes and used exclusively for the purposes prescribed in subsection (c) of this section. Balances in the Fund at the end of each fiscal year shall be carried forward and remain part of the Fund. Interest earned by the Fund shall be deposited into the Fund. (b) The Fund shall receive annual transfers from the General Fund and the Education Fund in amounts not to exceed 0.21 percent of total revenue collected in the prior fiscal year by the Department of Taxes. The fund may receive other receipts as directed or authorized by the General Assembly. (c) The Fund shall be used for the development, implementation, enhancement, and maintenance of information technology systems and services for the administration of taxes and programs administered by the Department. This shall include requests for proposal, business requirements, analysis, implementation of new tax types, enhancements to existing systems, and payments due to vendors of information technology systems and services. (d) The Commissioner of Taxes shall submit an annual report on the receipts, expenditures, and balances in the Tax Computer System Modernization Fund to the Joint Fiscal Committee each year at or prior to the Committee’s November meeting each year. Added 2023, No. 78, § E.111.1, eff. July 1, 2023.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/32/103Fetched: 10/21/2026