§ 1701. Definitions
As used in this chapter:
(1) “Critical infrastructure” means property and equipment owned or used by communications
networks and electric generation, transmission, and distribution systems; water and
wastewater systems; health systems; essential supply chains; thermal fuels and systems;
and communications networks, including cellular, broadband, and telecommunications
networks.
(2)(A) “Declared State disaster or emergency” means:
(i) a disaster or emergency event for which a Governor’s state of emergency proclamation
has been issued;
(ii) a disaster or emergency event for which a Presidential declaration of a federal major
disaster or emergency has been issued; or
(iii) a disaster or emergency event within the State for which a good faith response effort
is required, and for which the Commissioner of Public Service is given notification
from the registered business and the Commissioner, in consultation with the Director
of Emergency Management, Department of Public Safety, designates the event as a disaster
or emergency, thereby invoking the provisions of this chapter.
(B) “Declared State disaster or emergency” does not include an emergency or situation
arising solely from a labor dispute.
(3) “Disaster response period” means a period that begins 10 days prior to the first day
of the Governor’s proclamation, the President’s declaration, or designation by another
authorized official of the State as set forth in this chapter, whichever occurs first,
and that extends 60 calendar days after the declared State disaster or emergency.
(4) “Disaster- or emergency-related work” means repairing, renovating, installing, building,
rendering services, or other nonretail business activities in areas of the State affected
by the declared State disaster or emergency that relate to critical infrastructure
that has been damaged, impaired, or destroyed by the declared State disaster or emergency.
(5) “Mutual Assistance Agreement” means an agreement to which one or more registered businesses
and one or more out-of-state businesses are party and pursuant to which an electric
or telephone utility may request and receive assistance from an out-of-state business
for performance of disaster- or emergency-related work by the out-of-state business
during the disaster response period.
(6)(A) “Out-of-state business” means a business entity that, except for disaster- or emergency-related
work, has no presence in the State and conducts no business in the State whose services
are requested pursuant to a Mutual Assistance Agreement by a registered business or
by a State or local government for purposes of performing disaster- or emergency-related
work on critical infrastructure in the State.
(B) “Out-of-state business” also includes a business entity that is affiliated with a
registered business in the State solely through common ownership.
(C) An out-of-state business has no registrations or tax filings or nexus in the State
other than disaster- or emergency-related work during the tax year immediately preceding
the declared State disaster or emergency.
(7) “Out-of-state employee” means an employee who does not work in the State, except for
disaster- or emergency-related work during the disaster response period.
(8) “Registered business in the State” or “registered business” means a business entity
that is currently registered with the Secretary of State to do business in the State
prior to the declared State disaster or emergency. (Added 2015, No. 51, § A.1., eff. June 3, 2015; amended 2023, No. 71, § 2, eff. July 1, 2023.)
§ 1702. Obligations after disaster response period
(a) Business and employee status during the disaster response period.
(1)(A) An out-of-state business that conducts operations within the State for purposes of
performing work or services related to a declared State disaster or emergency during
the disaster response period shall not be considered to have established a level of
presence that would require that business to register, file, or remit State or local
taxes or that would require that business or its out-of-state employees to be subject
to any State licensing or registration requirements.
(B) This includes any State or local business licensing or registration requirements or
State and local taxes or fees, including unemployment insurance, State or local occupational
licensing fees, ad valorem tax on equipment brought into the State temporarily for
use during the disaster response period and subsequently removed from the State, and
Public Utility Commission or Secretary of State licensing and regulatory requirements.
(C) For purposes of any State or local tax on or measured by, in whole or in part, net
or gross income or receipts, all activity of the out-of-state business that is conducted
in this State pursuant to this chapter shall be disregarded with respect to any filing
requirements for such tax, including the filing required for a unitary or combined
group of which the out-of-state business may be a part.
(D) For the purpose of apportioning income, revenue, or receipts, the performance by an
out-of-state business of any work in accordance with this section shall not be sourced
to or shall not otherwise impact or increase the amount of income, revenue, or receipts
apportioned to this State.
(2)(A) An out-of-state employee shall not be considered to have established residency or
a presence in the State that would require that person or that person’s employer to
file and pay income taxes or to be subjected to tax withholdings or to file and pay
any other State or local tax or fee during the disaster response period.
(B) This includes any related State or local employer withholding and remittance obligations,
but does not include any transaction taxes or fees as described in subsection (b)
of this section.
(b) Transaction taxes and fees. An out-of-state business and an out-of-state employee
shall be required to pay transaction taxes and fees, including fuel tax and sales
and use tax on materials or services consumed or used in the State subject to sales
and use tax, rooms and meals tax, car rental taxes or fees that the out-of-state affiliated
business or out-of-state employee purchases for use or consumption in the State during
the disaster response period, unless such taxes are otherwise exempted during a disaster
response period. An out-of-state business making retail sales of tangible personal
property during the disaster response period shall be subject to all sales tax registration,
collection, reporting, and other requirements set forth in 32 V.S.A. chapter 233.
(c) Business or employee activity after disaster response period. An out-of-state business
or out-of-state employee that remains in the State after the disaster response period
will become subject to the State’s normal standards for establishing presence, residency,
or doing business in the State and will therefore become responsible for any business
or employee tax requirements that ensue. (Added 2015, No. 51, § A.1., eff. June 3, 2015; amended 2017, No. 53, § 12.)
§ 1703. Administration
(a) Notification of out-of-state business during the disaster response period.
(1) The out-of-state business that enters the State shall, upon request, provide to the
Secretary of State a statement that it is in the State for purposes of responding
to the disaster or emergency, which statement shall include the business’s name, state
of domicile, principal business address, federal tax identification number, date of
entry, and contact information.
(2) A registered business in the State shall, upon request, provide the information required
in subdivision (1) of this subsection for any affiliate that enters the State that
is an out-of-state business.
(3) The notification shall also include contact information for the registered business
in the State.
(b) Notification of intent to remain in State. An out-of-state business or an out-of-state employee that remains in the State after
the disaster response period shall complete State and local registration, licensing,
and filing requirements that ensue as a result of establishing the requisite business
presence or residency in the State applicable under the existing law.
(c) Procedures. The Secretary of State may adopt necessary rules, develop and issue forms or online
processes, and maintain and make available an annual record of any designations pursuant
to this chapter to carry out these administrative procedures. (Added 2015, No. 51, § A.1., eff. June 3, 2015.)