03-001 Code Vt. R. 03-000-001-X

Current through August, 2024

Section 03 000 001 - COPYRIGHTED COMPOSITIONS

Section 1 Definitions

For purposes of Chapter 207 of Title 32 ("this Chapter"):

(a) "Person" shall include 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.

(b) "State Treasurer" shall include the State Treasurer, or any officer, employee, designee or agent, including employees of other State departments or agencies temporarily assigned to the State Treasurer.

(c) "Tax" shall include the liability for all amounts determined to be owing the State of Vermont under this chapter.

Section 2 Books & Records Required to Be Kept

(a) Every person liable for tax under this Chapter shall keep adequate and complete records of his business in this State. These records must clearly indicate:

1. Each account located within this State.

2. Total receipts from each account located within this State.

These records must include the normal books of account ordinarily maintained by the average prudent businessman engaged in the activity in question together with all documents of original entry supporting the entries in the books.

(b) Any books and records required to be kept under this chapter or requested by the State Treasurer shall be made available for examination by the State Treasurer at any time or at any place designated by the State Treasurer. No witness fees or mileage shall be paid to any person whose liability for tax is being investigated, or to any person who has an outstanding liability for tax, whether or not such liability is being appealed.

Section 3 Audits

The State Treasurer may conduct audits of books and records of any person who may be liable for tax under this chapter, or who may be making payments upon which the tax might be imposed.

Section 4 Determination of Tax

(a) If the State Treasurer 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, he shall notify the taxpayer of the deficiency or assess the penalty or interest, as the case may be, by mail. The State Treasurer shall determine the amount of tax due from any information available. If necessary, the tax may be estimated on the basis of external indices, such as gross market percentages, national trade publication statistics or information, or any other information deemed appropriate by the State Treasurer.

(b) The State Treasurer 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, at any time within three years after the date that tax liability was originally required to be paid under this chapter.

(c) Notwithstanding subsection (b) 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 taxpayer and the State Treasurer agree, the notification or assessment may be made at any time before the date so agreed upon.

(d) Upon receipt of a notice of deficiency or assessment of penalty or interest under this chapter, the taxpayer may, within thirty days after the date of the notice or assessment, petition the State Treasurer in writing for a determination concerning the deficiency, penalty or interest.

(e) Any hearing granted by the State Treasurer under this chapter shall be a contested case under Chapter 25 of Title 3. A taxpayer may appeal a determination by the State Treasurer concerning a notice of deficiency, an assessment of penalty or interest, or a claim to refund, to the Washington Superior Court or the county court of the county in which the taxpayer resides or has a place of business.

Section 5 Refund Notice

(a) At any time within three years after the date a return is required to be filed under this chapter, a taxpayer may petition the State Treasurer 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 State Treasurer and the taxpayer, the State Treasurer shall thereafter, upon notice to the taxpayer, hold a hearing on the claim and shall notify the taxpayer of his determination of the claim within thirty days of the hearing.

(b) If the State Treasurer determines, on a petition for refund or otherwise, that a taxpayer has paid an amount of tax under this chapter which, 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 State Treasurer shall forthwith refund the excess amount to the taxpayer together with interest at the rate of six percent per annum. That interest shall be computed from the date of the excess payment, or from the date the return was due with respect to which the excess payment was made, whichever is the later date.

(c) Any notice by the State Treasurer under this chapter may be given by mailing it to the person for whom it is intended in a postpaid envelope addressed to the person at the address given in the last return filed by him under this chapter or in any application made by him under this chapter 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 which is determined under this chapter by the giving of notice shall commence to run from the date of mailing of the notice. "The date of mailing" shall be the later of the date written upon the notice, or the date the notice is postmarked.

Section 6 Appeals

Notice of an appeal must be given in writing by the person appealing to the State Treasurer, 133 State Street, Montpelier, Vermont with specific reference to the assessment from which the person appeals.

Section 7 Payment and Collection

(a) Upon notification to a taxpayer of any deficiency, and upon assessment against the taxpayer of any penalty or interest, under this chapter, the amount of the assessment shall be payable forthwith and the amount of the deficiency and assessment shall be collectible by the State Treasurer thirty days after the date of the notification or assessment.

(1) If within thirty days of the notification of deficiency or assessment the taxpayer files a notice of appeal to the State Treasurer, collection shall be stayed until thirty days after the notification of the taxpayer of the determination; and

(2) If within thirty days of the notification of determination the taxpayer files a notice of appeal to a Superior Court, collection shall be stayed pending judgment of the court upon the appeal; and

(3) Under such further circumstances and upon such terms as the State Treasurer prescribes.

(b) Notwithstanding subsection (a) of this section, the State Treasurer, if he 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. The amount of deficiency, penalty or interest shall be collectible by the State Treasurer on the date of the demand, unless the taxpayer files with the State Treasurer 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 State Treasurer shall reimburse the taxpayer, promptly upon such determination, for the reasonable cost to the taxpayer of any bond obtained by him.

Section 8 Actions

The State Treasurer shall enforce this chapter by all means available to him, including actions in any court to enforce this chapter and collect the tax.

Section 9 Remedy Exclusive; Determination Final

(a) 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 and the appeal from an adverse determination of the petition for refund. The exclusive remedy of a taxpayer with respect to a notification of deficiency or assessment of penalty or interest shall be the petition for determination of the deficiency or assessment and the appeal from an adverse determination of deficiency or assessment.

(b) Upon the failure of a taxpayer to appeal from a notice of deficiency or assessment or to appeal from a determination of a deficiency or assessment of tax liability, 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, without limitation, 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.

Section 10 Other Agencies

The State Treasurer shall cooperate with other agencies of the State of Vermont to enforce this chapter. He may, in his discretion, conduct joint audits with other agencies with jurisdiction over other potential liabilities of the same person.

Date: 9-7-78

Emory A. Hebard

State TreasurerStatutory Authority: 32 V.S.A. Chapter 207

03-001 Code Vt. R. 03-000-001-X

Effective Date: September 12, 1978 (Secretary of State Rule Log #78-91)