The Vermont Statutes Online

Title 24: Municipal and County Government

Chapter 051: Finances; Accounts and Audits

• Subchapter 001: TAXES

• § 1521. Tax bills and warrants

  The selectboard shall seasonably make out and deliver to the proper collector, or to the town treasurer, if the town has voted to collect its taxes by that officer, tax bills for State, county, town, town school district, and highway taxes, with the name of each person taxed and the amount of the tax. They shall annex proper warrants thereto for collection and may include all of such taxes or a part thereof in one tax bill; provided, however, that a tax bill that includes an assessment of tax on a homestead shall separately state the amount of tax imposed on the housesite for municipal services and the amount of tax imposed on the housesite for education property tax. One warrant only shall be required for the collection of taxes on such tax bill. The selectboard shall certify on a tax bill, so made out what taxes are included therein and the rate percent of each tax so included. (Amended 1997, No. 60, § 28, eff. July 1, 1998; 2003, No. 76 (Adj. Sess.), § 19, eff. Feb. 17, 2004.)

• § 1522. Receipt for tax bills

  Upon the delivery of such tax bills to the collector, the selectboard shall take from him or her a receipt therefor, and shall deliver the same to the town treasurer.

• § 1523. Tax bills; duties of selectboards as to a deficit

  (a) When a town at the end of the fiscal year contemplated by section 1683 of this title has a deficit, unless the voters of said town have voted a special tax to make up said deficit or unless said deficit shall have been refunded pursuant to the provisions of chapter 53 of this title, the selectboard, when making up the next annual tax bill, shall add thereto a tax of five percent or such multiple of five in addition to the tax vote already authorized by law, to be levied upon the grand list of such town as will provide sufficient revenue to liquidate such deficit.

  (b) When a school district at the end of the fiscal year contemplated by section 1683 of this title has a deficit, unless the voters have voted to borrow funds to repay the deficit over a term of three years or less, or unless the deficit has been refunded pursuant to chapter 53 of this title, the school board shall add an amount sufficient to pay the deficit to its next adopted budget and report the total to the Secretary of Education for purposes of calculating education spending.

  (c) As used in this section, the following words have the following meanings unless the context clearly indicates the contrary: A “deficit” is the excess of the current liabilities and liability reserves of the fund over its current assets; or, where the fund has also other resources and obligations, the excess of its obligations over its resources; “current assets” are those assets which are available or can be made readily available to meet the cost of operations or to pay current liabilities; “current liabilities” are those liabilities which are payable within a relatively short period of time, usually no longer than a year; a “fund” is a sum of money or other resource set aside for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations, and constituting an independent fiscal and accounting entity such as the general or school fund. (Amended 1959, No. 129, eff. April 21, 1959; 1997, No. 71 (Adj. Sess.), § 119, eff. March 11, 1998; amended 2003, No. 36, § 11; 2005, No. 182 (Adj. Sess.), § 9; 2013, No. 92 (Adj. Sess.), § 270, eff. Feb. 14, 2014.)

• § 1524. Tax levies; how kept

  The town treasurer upon receiving from the selectboard a town tax bill under the provisions of 32 V.S.A. § 4791 or the receipt of the tax collector for such bill under the provisions of section 1522 of this title shall credit the town highway department and the town school district each with the gross sum of the levy provided for such department and district. The balance of such levy shall be credited to the general fund. (Amended 2017, No. 74, § 79.)

• § 1525. Tax levies; credit for gains

  The treasurer shall thereafter credit to the general fund all gains over the total sum of such rate bill by reason of fractional discounts under the provisions of 32 V.S.A. § 4774 or of interest charges upon delinquent tax payments under the provisions of 32 V.S.A. § 5136 or any other gain. (Amended 2017, No. 74, § 80.)

• § 1526. Tax levies; debit of general fund

  The treasurer shall debit thereafter such general fund with:

  (1) all collection fees allowed such treasurer for receiving taxes and issuing his or her warrant to the collector;

  (2) any other lawful costs of collection;

  (3) abatements made by the board for the abatement of taxes; and

  (4) any other diminution or loss in the course of the enforcement of such rate bill. (Amended 2017, No. 74, § 81.)

• § 1527. Tax levies—Officers’ duties

  (a) In all towns having therein neither an incorporated village nor an incorporated school district, the town treasurer shall deal with the usual tax levies as provided in sections 1524-1526 of this title.

  (b) In any town having therein an incorporated village but no incorporated school district, the town treasurer shall deal with the usual tax levies except the highway levy as provided in such sections and the voters of the town may vote to adopt the provisions of the aforementioned sections for application to the town highway levy.

  (c) In any town having therein an incorporated school district but no incorporated village, the town treasurer shall deal with the usual tax levies except the school district levy as provided in sections 1524-1526 of this title and the voters of the town may vote to adopt the provisions of the aforementioned sections for application to the town school district levy.

  (d) In any town having therein both an incorporated school district and an incorporated village, the provisions of said sections 1524-1526 with regard to the relation of general fund, highway account, and town school district account shall apply only if adopted by action of the voters of the town.

• § 1528. Collector of taxes

  When a town at its annual meeting elects a collector of taxes, he or she shall collect State, county, town, and town school district taxes. Warrants and rate bills for the collection of such taxes shall be directed to the collector, and he or she shall give his or her receipt therefor. He or she shall collect and pay over such taxes agreeably to his or her warrant.

• § 1529. First constable as collector

  The first constable shall be collector of State, county, town, and town school district taxes when a collector of taxes is not elected at the annual town meeting, and shall pay over the taxes collected agreeably to the warrants for their collection.

• § 1530. Compensation

  If a municipality votes to pay a salary or other compensation for collecting taxes in lieu of fees and commissions, the latter shall be turned in to the municipal treasurer at least once a month. (Amended 1997, No. 156 (Adj. Sess.), § 28, eff. April 29, 1998; 2003, No. 100 (Adj. Sess.), § 3.)

• § 1531. Payment of money; inspection of tax book

  When requested by notice in writing signed by a majority of the selectboard, the collector of taxes shall pay to the town treasurer the money belonging to the town and the town school district collected by him or her. He or she shall submit his or her tax book and list to the treasurer for inspection and computation. When he or she fails to do so for ten days, he or she shall be fined not more than $100.00.

• § 1532. Settlement; disqualification for neglect

  Annually, on or before February 1, the collector shall pay over all monies collected by him or her to the treasuries to which they belong and settle his or her account with the treasurers. When he or she refuses or neglects so to do, he or she shall be ineligible to reelection for the ensuing year.

• § 1533. Town board for the abatement of taxes

  (a) The board of civil authority, with the listers and the town treasurer, shall constitute a board for the abatement of town and property taxes and water and sewer charges.

  (b) The act of a majority of a quorum at a meeting shall be treated as the act of the board. This quorum requirement need not be met if the town treasurer, a majority of the listers, and a majority of the selectboard are present at the meeting. (Amended 1999, No. 49, § 82, eff. June 2, 1999; 2017, No. 74, § 82; 2017, No. 130 (Adj. Sess.), § 13.)

• § 1534. Meetings; how notified

  Meetings of such board shall be notified like meetings of the board of civil authority, except that at least one of the listers shall have personal notice of such meetings.

• § 1535. Abatement

  (a) The board may abate in whole or part taxes, water charges, sewer charges, interest, collection fees, or any other municipal charges or fees for utilities or services, or any combination of those, other than those arising out of a corrected classification of homestead or nonhomestead property, accruing to the town in the following cases:

  (1) taxes or charges of persons who have died insolvent;

  (2) taxes or charges of persons who have moved from the State;

  (3) taxes or charges of persons who are unable to pay their taxes or charges, interest, and collection fees;

  (4) taxes in which there is a clear or obvious error or a mistake of the listers;

  (5) taxes or charges upon real or personal property lost or destroyed during the tax year;

  (6) the exemption amount available under 32 V.S.A. § 3802(11) to persons otherwise eligible for exemption who file a claim on or after May 1 but before October 1 due to the claimant’s sickness or disability or other good cause as determined by the board of abatement; but that exemption amount shall be reduced by 20 percent of the total exemption for each month or portion of a month the claim is late filed;

  (7) [Repealed.]

  (8) [Repealed.]

  (9) taxes or charges upon a mobile home moved from the town during the tax year as a result of a change in use of the mobile home park land or parts thereof or closure of the mobile home park in which the mobile home was sited, pursuant to 10 V.S.A. § 6237; or

  (10) sewer, water, utility, or service charges caused by circumstances that were difficult to foresee or outside of the person’s control.

  (b) The board’s abatement of an amount of tax or charge shall automatically abate any uncollected interest and fees relating to that amount.

  (c) The board shall, in any case in which it abates taxes or charges, interest, or collection fees accruing to the town or denies an application for abatement, state in detail in writing the reasons for its decision. The written decision shall provide sufficient explanation to indicate to the parties what was considered and what was decided. The decision shall address the arguments raised by the applicant. Prior to issuing a written decision, the board may request additional relevant information or documentation related to the case.

  (d)(1) The board may order that any abatement as to an amount or amounts already paid be in the form of a refund or in the form of a credit against the tax or charge for the next ensuing tax year or charge billing cycle and for succeeding tax years or billing cycles if required to use up the amount of the credit.

  (2) Whenever a municipality votes to collect interest on overdue taxes pursuant to 32 V.S.A. § 5136, interest in a like amount shall be paid by the municipality to any person for whom an abatement has been ordered.

  (3) Interest on taxes or charges paid and subsequently abated shall accrue from the date payment was due or made, whichever is later. However, abatements issued pursuant to subdivision (a)(5) of this section need not include the payment of interest.

  (4) When a refund has been ordered, the board shall draw an order on the town treasurer for payment of the refund.

  (e)(1) The board may hear a group of similar requests for abatement as a class, provided that:

  (A) the board has first met and established a class in accordance with this subsection (e);

  (B) the requests shall arise from the same cause or event;

  (C) the requests relate to the bases for abatement in subdivision (a)(4), (5), or (9) of this section;

  (D) the board shall group requests based on property classification;

  (E) the board shall provide notice to each taxpayer of the taxpayer’s status as a member of the class; and

  (F) a taxpayer shall have the right to decline the taxpayer’s status as a member of the class and pursue the taxpayer’s request as a separate action before the board.

  (2) The board shall provide notice to each taxpayer at minimum 21 days before the scheduled hearing for the class. The notice shall include a description of the class and the board’s reasons for grouping the requests, an explanation of the taxpayer’s status as a member of the class, the procedure for appealing a board decision, the taxpayer’s right to decline class membership and pursue a separate action, and any deadlines that the taxpayer must meet in order to participate as a member of the class or pursue a separate action.

  (3) A taxpayer shall notify the board of the taxpayer’s intent to pursue a separate action, pursuant to subdivision (1)(F) of this subsection, a minimum of seven days before the board’s hearing to consider a class request.

  (4) A board may preserve and take notice of any evidence supporting the basis for abatement for a class and use that evidence for purposes of a later, separate action pursued by an individual taxpayer.

  (5) In instances where a board abates in part taxes, charges, interest, or collection fees for a class, the board shall not render a decision that results in disproportionate rates of abatement for taxpayers within the class.

  (f) A municipality shall provide clear notice to a taxpayer of the ability to request tax abatement, and how to request abatement, at the same time as a municipality attempts to collect a municipal fee or interest for delinquent taxes, water charges, sewer charges, or tax collection.

  (g) The legislative body of a municipality by a majority vote may abate de minimis amounts of taxes for purposes of reconciling municipal accounts according to generally accepted accounting principles. (Amended 1975, No. 158 (Adj. Sess.), § 1; 1989, No. 149 (Adj. Sess.), § 1, eff. April 24, 1990; 1991, No. 19; 1995, No. 149 (Adj. Sess.), § 1; 1999, No. 49, § 83, eff. June 2, 1999; 1999, No. 159 (Adj. Sess.), § 24, eff. May 29, 2000; 2001, No. 140 (Adj. Sess.), § 30, eff. June 21, 2002; 2003, No. 76 (Adj. Sess.), § 3, eff. Feb. 17, 2004; 2005, No. 14, §§ 6, 7, eff. May 3, 2005; 2011, No. 155 (Adj. Sess.), § 6; 2017, No. 130 (Adj. Sess.), § 13; 2023, No. 106 (Adj. Sess.), § 1, eff. May 13, 2024.)

• § 1536. Abatement; record; discharge

  The board for the abatement of taxes shall make a record of taxes, interest, and fees so abated, which shall be recorded in the office of the town clerk and a certified copy shall be forwarded forthwith to the collector of taxes and the town treasurer. The collector shall mark in the tax bill the taxes, interest, and fees abated and the persons against whom they were assessed shall be discharged from their payment. An abatement of a use change tax shall be separately recorded in the land records of the municipality in which the property subject to the abatement is located and shall effect a release of the land use lien on the portion of the property abated. (Amended 1989, No. 149 (Adj. Sess.), § 2, eff. April 24, 1990; 1999, No. 49, § 84, eff. June 2, 1999; 2017, No. 74, § 83.)

• § 1537. City or village board of tax abatement

  The board for the abatement of taxes of a city shall consist of the mayor, city clerk, and aldermen thereof and the justices of the peace and assessors residing therein; of a village, of the trustees and clerk thereof and the justices of the peace and listers residing therein. Such board may abate taxes, interest, and fees accruing to such municipality in all cases where a different provision is not made by the charter, acts of incorporation, or amendments thereto, of such municipality. (Amended 1989, No. 149 (Adj. Sess.), § 3, eff. April 24, 1990.)

• § 1538. Assessment of tax to pay execution

  When a demand is made upon a city, town, town school district, or incorporated village for payment of an execution issued against it, and funds are not available in its treasury to pay the same, the mayor and board of aldermen, selectboard, or trustees shall forthwith assess a tax upon the grand list of the city, town, town school district, or incorporated village, sufficient to pay such execution with the charges and 12 percent interest thereon, and cause the same to be collected within 60 days.

• Subchapter 002: TOWN TREASURER; ACCOUNTS; CITY ACCOUNTS

• § 1571. Accounts; reports

  (a) The town treasurer shall keep an account of monies, bonds, notes, and evidences of debt paid or delivered to him or her, and of monies paid out by him or her for the town and the town school district, which accounts shall at all times be open to the inspection of persons interested.

  (b) Monies received by the town treasurer on behalf of the town may be invested and reinvested by the treasurer with the approval of the legislative body.

  (c) The town treasurer shall file quarterly reports with the legislative body regarding his or her actions set forth in subsections (a) and (b) of this section.

  (d) The town treasurer shall annually, on or before June 30, complete and provide to the selectboard a copy of the document made available by the Auditor of Accounts pursuant to 32 V.S.A. § 163(11) regarding internal financial controls. (Amended 1981, No. 239 (Adj. Sess.), § 5; 2011, No. 155 (Adj. Sess.), § 27.)

• § 1572. City accounts

  The accounting officers of the several cities within the State shall keep uniform accounts in a manner prescribed by the Auditor of Accounts.

• § 1573. Assistant treasurer

  A town or city treasurer may appoint an assistant town or city treasurer and may revoke any such appointment at any time. The town or city treasurer shall be responsible for the acts and omissions of any assistant appointed by him or her. If after written request from the selectboard to appoint an assistant treasurer, the town or city treasurer fails for ten days to do so, the selectboard may appoint an assistant treasurer and may revoke such appointment at any time. An assistant treasurer, during the temporary absence or disability of the treasurer, shall perform the duties of treasurer. The appointment and revocation of assistant treasurer shall be recorded in the office of the town or city clerk. (Amended 1959, No. 183, § 1.)

• § 1574. Record of taxes voted

  The treasurer shall keep a record showing the amount of taxes voted for the support of highways, schools, special departments, if any, and for general town purposes. Such record shall be based upon an inspection of the town and town district tax bills, when placed with the treasurer by the selectboard under the provisions of 32 V.S.A. § 4791. When such taxes are collected by a tax collector, such record may be based upon the collector’s tax receipt.

• § 1575. Repealed. 1985, No. 196 (Adj. Sess.), § 17.

• § 1576. Town treasurer; record of orders

  The treasurer shall pay orders drawn on him or her by officials authorized by law to draw such orders. If he or she does not pay such orders, on demand, the holder thereof may recover the amount from the town, with interest from the time of such demand. The treasurer shall keep a record of such orders not paid on demand in a book kept for that purpose. In the event, however, where there are insufficient funds on hand for the payment of any such order, the treasurer shall forthwith notify the selectboard and the officer drawing the same.

• § 1577. [Omitted.]

• § 1578. Settlement with auditors and successor

  The treasurer shall settle with the auditors five days previous to each annual town meeting, and at such other times as the selectboard may require and whenever he or she retires from office. At the close of his or her term of office he or she shall immediately pay over to his or her successor the funds in his or her hands belonging to the town and the town school district and at the same time deliver to his or her successor all official books and papers in his or her possession.

• § 1579. Collector’s receipt

  The town and town school district treasurer shall endorse upon the receipt given by the collector of taxes and lodged with such treasurer all payments thereon made by such collector and such abatements thereof as may be made by the board for the abatement of taxes.

• § 1580. Account with collector

  The town and town school district treasurer shall keep with the collector of taxes a separate account of each annual tax bill by endorsing thereon his or her payments and the abatement allowed by the board for abatement of taxes with the date of each endorsement.

• § 1581. Balance due treasurer

  When a balance is due a treasurer, the auditors shall draw and deliver to him or her an order therefor on the town treasury.

• § 1582. Outstanding orders; notice to stop interest

  When a municipality has outstanding interest bearing orders due and payable, the treasurer may give notice that such orders will be paid on presentation at his or her office on or before a day certain named in such notice, and that after such day such orders shall cease to draw interest.

• § 1583. Outstanding orders; publication of notice

  Such notice shall be given personally or by publication in a newspaper published in the county, or if none is published in the county, in a newspaper published in an adjoining county, at least three weeks successively, the last publication to be at least 15 days before the day named in such notice. (Amended 2017, No. 74, § 84.)

• § 1584. Outstanding orders; no interest after day of notice

  When such notice has been given, by publication as set forth in section 1583 of this subchapter or by written notice signed by the treasurer and delivered to the holder of any such order, such order shall not draw interest after the day named in the notice, unless the treasurer fails to pay such order on presentation according to the terms of the notice. (Amended 2017, No. 74, § 85.)

• Subchapter 003: ORDERS DRAWN BY MUNICIPAL BODIES

• § 1621. Orders for land damages or damages for injuries

  The selectboard may draw orders on the town treasurer for damages for lands or property taken or improved for a highway or other public use, or for damages settled by agreement or awarded for injuries sustained from the insufficiency of a highway.

• § 1622. Town orders; record

  (a)(1) The chair of the selectboard shall keep or cause to be kept a single record of all orders drawn by the board showing the number, date, to whom payable, for what purpose, and the amount of each order.

  (2) All other officers authorized by law to draw orders upon the town treasurer shall keep or cause to be kept a like record.

  (b) Such records shall be submitted to the town auditors annually on or before February 1.

  (c) If the records of orders named in this section are made by an assistant clerk, the assistant clerk shall not be the town treasurer or the spouse of the town treasurer or any person acting in the capacity of clerk for the town treasurer. (Amended 2017, No. 130 (Adj. Sess.), § 13.)

• § 1623. Signing orders

  (a) The selectboard may do either of the following:

  (1) Authorize one or more members of the board to examine and allow claims against the town for town expenses and draw orders for such claims to the party entitled to payment.

  (A) Orders shall state definitely the purpose for which each is drawn and shall serve as full authority to the treasurer to make the payments.

  (B) The selectboard shall be provided with a record of orders drawn under this subdivision (1) whenever orders are signed by less than a majority of the board.

  (2) Submit to the town treasurer a certified copy of those portions of the selectboard minutes, properly signed by the clerk and chair or by a majority of the board, showing to whom and for what purpose each payment is to be made by the treasurer. The certified copy of the minutes shall serve as full authority to the treasurer to make the approved payments.

  (b) This section shall apply to all municipal public bodies authorized by law to draw orders on the municipal treasurer. (Added 1995, No. 110 (Adj. Sess.), § 1; amended 2017, No. 130 (Adj. Sess.), § 13.)

• Subchapter 004: ACCOUNTS OF OVERSEER OF POOR

• § 1651. Repealed. 1967, No. 147, § 53(b), eff. Oct. 1, 1968.

• § 1652. Records of overseers of the poor

  Effective October 1, 1968, the office of overseer of the poor is abolished. On that day or as soon thereafter as possible the overseer of the poor shall turn all records of the office over to the town clerk of his or her town, who shall thereafter keep them until authorized by law to dispose of them. (Added 1967, No. 147, § 37, eff. Oct. 1, 1968.)

• Subchapter 005: AUDITORS AND AUDITS

• § 1681. Auditors; duties; meeting

  (a)(1) Town auditors shall meet at least 25 days before each annual town meeting to examine and adjust the accounts of all town officers and all other persons authorized by law to draw orders on the town treasurer.

  (2) Such auditing shall include the account that the treasurer is required to keep with the collector, the tax accounts of the collector, trust accounts where the town or any town officer, as such officer, is trustee or where the town is sole beneficiary, accounts relating to the town indebtedness, and accounts of any special funds in the care of any town official.

  (b) Notice of such meeting shall be given by posting or publication ten days in advance of such meeting. (Amended 1991, No. 176 (Adj. Sess.), § 1; 1997, No. 83 (Adj. Sess.), § 4; 2011, No. 129 (Adj. Sess.), § 29, eff. July 1, 2013.)

• § 1682. Report; distribution

  (a)(1) The auditors shall report their findings in writing and cause the same to be mailed or otherwise distributed to the voters of the town at least ten days before the annual meeting.

  (2) At a duly warned annual or special meeting, the voters of the town may vote to provide notice of the availability of the auditors’ report to the voters of the town in lieu of mailing or otherwise distributing the report itself. If the voters of the town vote to provide notice of availability, they must specify how notice of availability shall be given, and such notice of availability shall be provided to the voters of the town at least 30 days before the annual meeting.

  (3) Upon request, the auditors shall mail or distribute a copy of the full report to a voter or resident of the town.

  (4) When the auditors mail or distribute the report or provide notice of the availability of the report to the voters of the town, they shall at the same time deliver to the town clerk the copies required by section 1173 of this title and shall place all surplus copies in the custody of the town clerk before the first Tuesday in March.

  (5) As used in this subsection, the term “resident” shall be defined as the term is defined in 17 V.S.A. § 2122(b).

  (b) If a town has voted to eliminate the office of auditor, the findings of the public accountant employed in accordance with 17 V.S.A. § 2651b shall be mailed or otherwise distributed by the selectboard in the same manner that findings are required to be distributed by auditors. (Amended 1979, No. 200 (Adj. Sess.), § 119; 1997, No. 83 (Adj. Sess.), § 5; 2003, No. 126 (Adj. Sess.), § 2, eff. July 1, 2005; 2015, No. 30, § 38, eff. May 26, 2015.)

• § 1683. Contents of report; municipal fiscal years

  (a) The report shall show a detailed statement of the financial condition of such town for its fiscal year, a classified summary of receipts and expenditures, a list of all outstanding orders and payables more than 30 days past due, and show deficit, if any, pursuant to section 1523 of this title and such other information as the municipality shall direct. Individuals who are exempt from penalty, fees, and interest by virtue of 32 V.S.A. § 4609 shall not be listed or identified in any such report, provided that they notify or cause to be notified in writing the municipal or district treasurer that they should not be so listed or identified.

  (b) The fiscal year of all school districts, charter provisions notwithstanding, shall end on June 30.

  (c) The fiscal year of other municipalities shall end on December 31, unless the municipality votes at an annual or special meeting duly warned for that purpose to have a different fiscal year, in which case the fiscal year so voted shall remain in effect until amended.

  (d) [Repealed.] (Amended 1961, No. 219, § 2, eff. July 13, 1961; 1965, No. 23, § 2; 1969, No. 301 (Adj. Sess.), § 1, subsec. (a), eff. July 1, 1971, subsec. (c), eff. April 9, 1970; 1971, No. 8, § 1, eff. Feb. 25, 1971; 1989, No. 202 (Adj. Sess.), § 2; 1991, No. 110, § 4, eff. June 28, 1991; 1997, No. 83 (Adj. Sess.), § 6; 2011, No. 129 (Adj. Sess.), § 30, eff. July 1, 2013; 2015, No. 30, § 39, eff. May 26, 2015.)

• § 1684. Trust assets; indebtedness

  The auditors shall make a detailed statement showing:

  (1) the condition of all trust funds in which the town is interested and a list of the assets of such funds, including the account of receipts and disbursements for the preceding year;

  (2) what bonds of the town are outstanding and the rate of interest and the amount thereof; and

  (3) what interest-bearing notes or orders of the town are outstanding and the serial number, date, amount, payee, and rate of interest of each and the total amount thereof. (Amended 2017, No. 130 (Adj. Sess.), § 13.)

• § 1685. Subchapter application to villages

  Sections 1681-1684 of this subchapter shall apply to all incorporated villages. (Amended 2017, No. 74, § 86.)

• § 1686. Penalty

  (a) At any time in their discretion, town auditors may, and if requested by the selectboard, shall, examine and adjust the accounts of any town officer authorized by law to receive or disburse money belonging to the town.

  (b) If the town has voted to eliminate the office of auditor, the public accountant employed by the selectboard shall perform the duties of the town auditors under subsection (a) of this section upon request of the selectboard.

  (c)(1) If, after at least five business days following his or her receipt by certified mail of a written request by the auditors or public accountant that is approved and signed by the legislative body, a town officer willfully refuses or neglects to submit his or her books, accounts, vouchers, or tax bills to the auditors or the public accountant, or to furnish all necessary information in relation thereto, that town officer shall be ineligible to reelection for the year ensuing and be subject to the penalties otherwise prescribed by law.

  (2) A town officer who violates subdivision (1) of this subsection (c) shall be personally liable to the town for a civil penalty in the amount of $100.00 per day until he or she submits or furnishes the requested materials or information. A town may bring an action in the Civil Division of the Superior Court to enforce this subdivision.

  (d) As used in this section, the term “town officer” shall not include an officer subject to the provisions of 16 V.S.A. § 323. (Amended 1997, No. 83 (Adj. Sess.), § 7; 2011, No. 129 (Adj. Sess.), § 31, eff. July 1, 2013; 2011, No. 155 (Adj. Sess.), § 28; 2017, No. 27, § 4, eff. May 10, 2017.)

• § 1687. Notice of orders

  A bank, trust company, or individual in this State holding orders or other evidences of indebtedness of a municipal corporation shall annually, on or before January 5, send written notice to the chair of the board of auditors of such corporation, stating the amount of such orders or other evidences of indebtedness and the balance due thereon as of December 31 next preceding, unless the holder of any such indebtedness is requested by such auditor to send such notice at some other date to conform to the fiscal year of such municipality.

• § 1688. Notice of deposits

  A bank or trust company in this State having on deposit funds of a municipal corporation shall annually, on or before January 5, send written notice to the chair of the board of auditors of such corporation, stating the balance on deposit to the credit of such corporation on December 31 next preceding, unless the holder of such funds is requested by such auditor to send such notice at some other date to conform to the fiscal year of such municipality.

• § 1689. Penalty for failure to send notice

  A bank, trust company, or individual who violates a provision of section 1687 or 1688 of this subchapter shall be fined not less than $10.00 nor more than $25.00. (Amended 2017, No. 74, § 87.)

• § 1690. Certified or public accountant to audit town accounts; warning; form

  (a) The legislative body of a city, town, or incorporated village may upon its own motion contract with a public accountant, licensed in this State, to perform an annual financial audit of all funds of the town; or upon petition in writing of legal voters equal to five percent of the legal voters of the town or village, the legislative body shall insert in the warning for any annual meeting, or in the warning for a special meeting, which shall be called upon such petition, an article in substantially the following form:

  “To see if the [city, town, or village] will vote to instruct the [legislative body] to employ a certified public accountant or public accountant licensed in this State, to perform an annual financial audit of all funds of the [city, town, or village].”

  (b) Audits performed by a public accountant under this section shall be conducted in accordance with generally accepted government auditing standards, including the issuance of a report on internal control over financial reporting that shall be provided to recipients of the financial statements. When there are material weaknesses or significant deficiencies found in the internal control over financial reporting or the auditor’s or public accountant’s opinion is qualified, adverse, or disclaimed:

  (1) the auditor or public accountant shall present the findings or opinion to the legislative body of the town and explain those material weaknesses or significant deficiencies or his or her opinion at a meeting duly warned for the purpose;

  (2) after the audit report is delivered to the legislative body of a municipality, the notice for the next meeting of the legislative body shall also notify the voters of the availability of the audit report and the accompanying report on internal control over financial reporting;

  (3) the next published annual report of the town shall include a summary of material weaknesses or significant deficiencies found in the internal controls over financial reporting or a statement that the audit report sets forth an opinion that is qualified, adverse, or disclaimed; and

  (4) the legislative body shall post the audit report and the accompanying report on internal control over financial reporting on the municipality’s website, if the municipality has a website. (Amended 1985, No. 196 (Adj. Sess.), § 14; 2009, No. 95 (Adj. Sess.), § 1.)

• § 1691. Terms of employment

  At an annual or special meeting warned as provided in section 1690 of this title, a town or incorporated village may authorize the employment of a certified public accountant or a public accountant and fix the terms of such employment. Nothing herein shall be construed to relieve a town or incorporated village of the duty to elect town or village auditors as provided by law.

• §§ 1692-1695. Repealed. 1967, No. 91, § 4.

• § 1696. Repealed. 1969, No. 219 (Adj. Sess.), § 4, eff. March 27, 1970.

• § 1697. Repealed. 1967, No. 91, § 4.