The Vermont Statutes Online

Title 32: Taxation and Finance

Chapter 211: Corporation Taxes

• Subchapter 001: General Provisions

• § 8101. Imposition of tax

  A State tax for the payment of State expenses is hereby assessed upon the property, business, or corporate franchises of railroad, insurance, guaranty, transportation, mortgage, loan, or investment companies and shall be payable in money to the Commissioner of Taxes for the use of the State as hereinafter provided. (Amended 1997, No. 156 (Adj. Sess.), § 10, eff. April 29, 1998.)

• § 8102. Taxes a lien

  All taxes imposed by this chapter shall be a first lien upon all property of the person or corporation required to pay such taxes, except as otherwise provided in this chapter, until the same are fully paid. All persons or corporations that purchase or otherwise acquire title to any of such property, except in the due course of business for which such corporation owning the same has been chartered, shall be liable to the State for all such taxes due or accrued at the time of such purchase or transfer of title.

• § 8121. Formulation and distribution of returns

  The Commissioner shall formulate forms requiring the statement of facts necessary to determine the amount of each tax prescribed in this chapter. On request, he or she shall furnish such forms by mail or otherwise to each person or corporation required to pay such tax. If he or she deems it necessary, he or she shall furnish forms to any person who may have acted as an agent or broker in this State for a foreign insurance or guaranty company not making returns to this State for the purpose of taxation, or who within this State may have solicited, arranged for, or effected a contract of insurance, guarantyship, or suretyship for another person with such foreign company.

• § 8122. Execution of returns

  A person or corporation required by this chapter to pay a tax and all persons or corporations to whom the Commissioner sends forms shall fill out such forms, answer all interrogatories therein contained, and return the same as hereinafter provided. Such forms, so filled out, shall be subscribed and sworn to by the person making the return, if made by an individual or firm or, if made by a corporation, by its clerk, treasurer, or other proper officer.

• § 8123. Time and place of filing

  One copy of the form filled out and sworn to as provided in section 8122 of this title shall be returned at the expense of the party making the same to the Commissioner, and one copy shall be retained by the person or corporation making the return. When required to be made annually, such return shall be made and filed, except as otherwise provided in this chapter, on or before September 15 for the fiscal year ending with June 30 next preceding. When required to be made semiannually, such return shall be made and filed, except as otherwise provided in this chapter, on or before March 15 and September 15 for the semiannual periods ending with the last day of December and June next preceding, respectively.

• § 8124. Time for payment of tax

  Within 30 days after making returns, except as otherwise provided in this chapter, the person or corporation making same shall forward to the Commissioner the amount of the annual or semiannual tax for the period covered by the returns.

• § 8141. Examination of documents

  The Commissioner may examine any book, record, or paper of a corporation or person required by this chapter to make returns and pay a tax, concerning any matter as to which information is required to carry out the provisions of this chapter.

• § 8142. Examination of officers, agents, and stockholders

  On application of the Commissioner, a Justice of the Supreme Court or a Superior judge shall designate a master who may cite any officer, stockholder, agent, or clerk of a corporation or person required by this chapter to make returns or pay a tax to appear before him or her for examination upon oath by the Commissioner or to produce any book, record, or paper for inspection by the Commissioner concerning any matter as to which information is required to carry out the provisions of this chapter. By order of such Justice or judge, such testimony may be taken stenographically and transcribed in whole or in part for the use of the Commissioner, at the expense of the State. The fees and necessary expenses of a master so designated shall be fixed by the Justice or judge making the designation and paid by the State.

• § 8143. Form and service of citation for examination

  Such citation shall issue and be served like a writ of summons and shall require the person therein named to appear within a reasonable time that shall be stated therein. When books, records, or papers are required to be produced, the same shall be designated in the citation. When it appears during a hearing that an inspection should be had of books, records, or papers other than those named in such citation, the master may order that such books, records, or papers be forthwith produced for such inspection by the Commissioner.

• § 8144. Witness fees

  Excepting an officer, stockholder of a corporation, or a person required by this chapter to file a return and pay a tax, a person cited to appear before a master, designated pursuant to section 8142 of this title, shall be allowed the same attendance and travel fees as witnesses in Superior Court. Such fees shall be paid by the State on the certificate of the Commissioner. (Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)

• § 8145. Failure to appear, be sworn, or testify

  An officer, agent, clerk, or person who refuses to appear and be sworn or to testify as required by article 3 of this subchapter or to show the Commissioner the books, records, or papers as required by article 3 of this subchapter shall be fined not more than $5,000.00 nor less than $500.00.

• § 8146. Additional tax; refunds

  When the Commissioner finds that, owing to the incorrectness of a return or any other cause, a tax paid pursuant to this chapter is too small, he or she shall assess an additional tax sufficient to cover the deficit and shall forthwith notify the parties so assessed. The administrative provisions of chapters 103 and 151 of this title shall apply to assessments and refund claims under this chapter, including those provisions governing interest and penalties in section 3202 of this title, appeals, and collection of assessments. (Amended 2015, No. 57, § 87, eff. June 11, 2015; 2015, No. 134 (Adj. Sess.), § 18, eff. May 25, 2016.)

• § 8147. False swearing outside the State

  When an officer of a corporation whose returns to the Commissioner are sworn to in another state willfully makes a false statement as to a material fact required in such returns, such corporation shall forfeit to this State the sum of $300.00.

• § 8148. False swearing

  A person who willfully swears falsely to any return, statement, or certificate mentioned in this chapter or upon an examination before a master as provided in section 8142 of this title shall be guilty of perjury.

• § 8162. Foreign corporations

  When a foreign insurance, surety, or guaranty company, or an agent thereof fails to make returns or to pay the taxes as required in this chapter, the Commissioner shall notify the Commissioner of Financial Regulation thereof, who shall thereupon revoke the license of such company and its agents to do business in this State. Notice in writing of such revocation shall be mailed by the Commissioner of Financial Regulation to such company addressed to its principal office or place of business in the United States and to the Commissioner of Taxes. In the discretion of the Commissioner of Financial Regulation, such notice may be sent by mail or otherwise to any or all of the agents of such company residing in this State. The license of foreign loan, mortgage, or investment companies in like manner and for like causes shall be revoked by the Commissioner of Financial Regulation, and like notice thereof shall be given by such Commissioner. (Amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)

• § 8171. Recovery of taxes and penalties

  Taxes imposed by this chapter may be recovered in the name of the State in a civil action, on the statute imposing them, returnable to any Superior Court. The penalties so imposed may be so recovered in a civil action on the statute imposing them. The amount of taxes assessed or penalties accrued up to the time of trial may be recovered in such suit, but a court wherein an action is pending to recover a forfeiture, in its discretion, may remit such part thereof as it shall deem just and equitable in the circumstances. The State shall not be required in any proceeding under this chapter to furnish recognizance or bond for costs, nor injunction bonds. Upon final judgment, the court may make such order relating to the payment of costs, by the State or the defendant, as it shall deem just and equitable. (Amended 1965, No. 194, § 10, operative February 1, 1967; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 219.)

• § 8172. Inconsistent laws repealed

  So much of the charter of any corporation or company organized under the laws of this State as exempts such corporation from taxation, so far as it conflicts with this chapter, is hereby repealed.

• Subchapter 002: Railroads

• § 8211. Rate of tax and time of payment

  (a) For each taxable year, there is assessed upon the appraised value of the property and corporate franchise of each person or corporation owning or operating a railroad located in whole or in part within this State a tax at the rate of one percent. The appraised value shall be obtained and established as provided under this subchapter. One-half of the tax imposed by this section, covering the six months ending with June 30 in each year, shall be paid to the Commissioner on or before the following October 15 by the person or corporation then owning or operating the railroad. The remaining one-half of the tax covering the six months ending with December 31 in each year shall be paid to the Commissioner on or before the following April 15 by the person or corporation then owning or operating the railroad.

  (b) Not later than May 15 in each year, the State shall pay to each town wherein railroad real estate is located 50 percent of that portion of the tax revenue that has been collected upon the property of the railroad in that town for the immediately preceding taxable year. Delinquent taxes, when collected, shall be treated in the same fashion. (Amended 1971, No. 79, § 1, eff. date, see note set out below; 2021, No. 105 (Adj. Sess.), § 568, eff. July 1, 2022.)

• § 8212. Liability of lessees

  When a railroad is operated in this State by a person or corporation under a lease or other contract, taxes assessed thereon under the provisions of section 8211 of this title shall be paid by the lessee of such railroad or holder of such contract and be charged against and deducted from any payment due or to become due under such lease or contract, unless it is otherwise expressly stipulated therein.

• § 8241. Annual report required; contents

  A person or corporation owning or operating a railroad located in whole or in part in this State, annually, on or before July 1, shall file with the Commissioner a sworn copy of the Interstate Commerce Commission report and, upon forms to be prepared and furnished at the expense of the State, a report for the year ending December 31 next preceding. The report shall show, among other things, the amount of gross and net earnings of the person or corporation. If any portion of such railroad is outside this State, the returns shall give the amount of gross and net earnings per mile of the road; the length of the entire main line of road and the number of miles thereof in this State; the kind and weight of rail used on its main line; the kind and number of ties per mile; the kind of ballast; the number of miles of side and spur tracks; a list of its equipment; the amount and the value of its capital stock; its funded and floating debt; its surplus; its bonds secured by mortgage or other securities on the property of such person or corporation; the market value of its stock and bonds; and the amount of dividends, interest, or indebtedness paid annually or semiannually. If a railroad is leased and operated by the lessee, the returns shall also give the amount paid for the rental of the railroad and any other matter required by the Commissioner to carry out the provisions of this chapter. Whenever required in writing by the Commissioner, the person or corporation shall render a sworn statement of other and further facts relating to its financial or physical condition as shall be required in making the appraisal under this subchapter. (Amended 1975, No. 43, § 1, eff. April 14, 1975; 2021, No. 105 (Adj. Sess.), § 569, eff. July 1, 2022.)

• § 8242. Reports on fiscal year basis

  The Commissioner may permit a person or corporation required to report to him or her under the provisions of section 8241 of this title, which has an established system of bookkeeping or accounting covering a fiscal year ending at a time other than December 31, to make its report covering its fiscal year last prior to the time of making such report in lieu of the fiscal year ending December 31. (Amended 1975, No. 43, § 2, eff. April 14, 1975.)

• § 8261. Railroad property

  The words “property acquired, constructed, or used for railroad business or purposes” as used in this chapter and except as otherwise provided shall include all franchises, rights-of-way, roadbeds, tracks, bridges, stations, terminals, rolling stock, equipment, and all other real and personal property of whatever character used or employed in the operation of a railroad or in conducting its business and shall include all title and interest in such property as owner, lessee, or otherwise.

• § 8281. Railroad operating wholly in State

  The Director shall appraise at its fair and just value all property acquired, constructed, or used for railroad business or purposes held, possessed, or owned by a person or corporation operating a railroad located entirely within this State. (Amended 1977, No. 105, § 14(a).)

• § 8282. Road operating within and outside the State

  When a person or corporation operates a line of railroad located partly within and partly outside this State, except as otherwise provided, the Director shall appraise at its fair and just value all property within this State acquired, constructed, or used in this State for railroad business or purposes held, possessed, or owned by the person or corporation operating the line of railroad. In making the appraisal, the Director may take into consideration the value of the entire railroad system operated by the person or corporation; the mileage both within and outside this State; its engines, cars, and other equipment; and other information, facts, and circumstances as will aid the Director. (Amended 1977, No. 105, § 14(a); 2021, No. 105 (Adj. Sess.), § 570, eff. July 1, 2022.)

• § 8283. Single or separate appraisals

  In appraising the property specified in sections 8281 and 8282 of this title, except as otherwise provided, the Director may include in a single appraisal and valuation all such property so held, possessed, or owned by such person or corporation. In his or her discretion, he or she may include in two or more separate appraisals and valuations such portion or portions of such property so held, possessed, or owned by such person or corporation as he or she shall designate. As hereinafter provided, he or she shall make a record of such separate appraisals and valuations and of the aggregate appraisals and valuations of each person or corporation. (Amended 1977, No. 105, § 14(a).)

• § 8284. Appraised value as true value

  For the purpose of taxation under the provisions of section 8211 of this title, such appraised valuation when made as aforesaid, except as otherwise provided, shall be taken to be the true value of such properties and franchises within this State so acquired, constructed, or used.

• § 8285. Defective, insufficient, or invalid appraisals

  When for any cause an appraisal required under the provisions of this article or article 6 of this subchapter is omitted or is found to be defective, insufficient, or invalid, the Director thereupon may make a new appraisal of the property whose appraisal has been so omitted or is defective, insufficient, or invalid. A record of such appraisal on the date thereof shall be made in the manner provided in section 8341 of this title and notice thereof given to the person or corporation specified in section 8343 of this title. (Amended 1977, No. 105, § 14(a).)

• § 8286. Property exempt from appraisal

  The aforesaid appraisals shall not include the following classes of property owned by railroad companies: tenement houses and the lands whereon the same are located; lands or buildings leased to or occupied by another person or corporation for other than railroad purposes; timber, farming, meadow, or pasture lands; and water power or electric plants not used for railroad purposes. The section of the North Stratford, New Hampshire to Beecher Falls, Vermont railroad line owned by the State of New Hampshire and situated in the Town of Canaan shall be exempt from taxation under this subchapter when this section of railroad line is used solely for public recreation purposes, and not for railroad purposes, during the entire taxable year. Each railroad company that owns property coming within the scope of this section shall maintain with the clerk of each town or city wherein such property is located a certified list describing all such property within the town or city. When the status of any railroad property changes, the railroad shall notify forthwith the town clerk in the town where the property is located of such change. (Amended 1959, No. 28, eff. March 11, 1959; 1989, No. 222 (Adj. Sess.), § 32, eff. May 31, 1990.)

• §§ 8301-8306. Repealed. 1997, No. 156 (Adj. Sess.), § 11, eff. April 29, 1998.

• § 8321. General rule

  All appraisals made under the provisions of article 4 of this subchapter shall be made in each even year on or before December 31. (Amended 1975, No. 43, § 3, eff. April 14, 1975; 1997, No. 156 (Adj. Sess.), § 12, eff. April 29, 1998.)

• § 8322. Subsequent appraisals

  (a) When, subsequent to the date whereon such appraisals are required to be made, trains, other than construction trains, commence running on a railroad located in whole or in part within this State or on any extension or branch of a railroad theretofore appraised, on or before December 31 in the year in which such trains so commence running, the Commissioner shall appraise such railroad, extension, or branch in the manner hereinbefore provided for appraising such property.

  (b) When, subsequent to the time thereof appraisals are required to be made in an even year, a person or corporation operating a railroad constructs, acquires, or begins to use one or more electric power plants subject to the appraisal under the provisions of article 4 of this subchapter, the Commissioner shall, on or before December 31 in the year in which such plant was constructed, acquired, or first used in whole or in part for railroad purposes, appraise such plants in the manner hereinbefore provided for appraising such property.

  (c) If, during the period between the appraisals, extensive repairs, improvements, or additions through acquisition or new construction have been made to the property of a railroad operating in this State, or if during such period there has been a large depreciation in the value of the property of such a railroad by reason of fire, flood, or other accident or disaster, or by reason of abandonment of lines or tracks, on or before December 31 in any odd year, the Commissioner may increase or decrease the amount of the last appraisal as he or she deems just. Notice of such action of the Commissioner, shall be given, and a party aggrieved thereby may appeal in the manner provided in respect to the regular biennial appraisals, and the taxes payable on or before October 15 next following and thereafter, until a new appraisal becomes effective, shall be based on such increased or decreased appraisal. (Amended 1997, No. 156 (Adj. Sess.), § 13, eff. April 29, 1998.)

• § 8341. Record of appraisals

  On or before January 15 following any appraisal made under the provisions of articles 4 and 6 of this subchapter, the Commissioner shall make a record thereof in a book kept in the Commissioner’s office for that purpose. (Amended 1997, No. 156 (Adj. Sess.), § 14, eff. April 29, 1998.)

• § 8342. Sufficiency of record and notice

  A record of notice of such appraisals showing, among other things, that all of the property within this State acquired, constructed, or used for railroad business or purposes and held, possessed, or owned by a person or corporation so operating a railroad, other than such as is enumerated in section 8286 of this title, has been appraised at the amount therein named, shall be deemed a sufficient and valid record and notice.

• § 8343. Notice of appraisal; time appraisal in force

  On or before January 15 following such appraisals, the Commissioner shall notify in writing, by mail or otherwise, every person or corporation operating a railroad located in whole or in part within this State of the amount of all appraisals of property so operated by them and required to be appraised under the provisions of articles 4 and 6 of this subchapter and the amount of taxes annually assessed therein. Failure on the part of the Commissioner to give such notice, or of the person or corporation to receive the same, shall not invalidate such appraisal. An appraisal of such property made pursuant to the provisions of this chapter shall remain in full force and effect until a subsequent appraisal has been lawfully made and established. (Amended 1997, No. 156 (Adj. Sess.), § 15, eff. April 29, 1998.)

• § 8344. Definition of representative; notice

  The person or corporation operating a railroad in this State shall be the representative of every title and interest in property acquired, constructed, or used in the operation and business thereof as owner, lessee, or otherwise. Notice to the operating person or corporation shall be notice to all interests in the railroad property for the purpose of taxation. The appraisal and taxation of property so acquired, constructed, or used in the name of the owner, lessee, or operating person or corporation shall be deemed an appraisal and taxation of all title and interest in such property of every kind and nature.

• § 8361. General rules for appeals

  (a) A party aggrieved, including the State represented by the State Treasurer, on or before February 15 following such an appraisal, may appeal therefrom to a Superior judge designated by the Chief Superior Judge, not excluding themselves, who shall hear such appeal.

  (b) In the manner prescribed in this section and within 15 days from the date of notice prescribed in section 8285 of this title, appeals to the Superior judge may be taken from appraisals made agreeably to the provisions of such section 8285. Such proceedings shall be had in relation thereto as are prescribed in this section and section 8362 of this title and shall be heard and determined within 60 days from the date whereon the same are instituted.

  (c) Such Superior judge shall appraise at its fair and just value all property required to be appraised by the Commissioner under the provisions of sections 8281-8286, 8321, and 8322 of this title, from the appraisal of which an appeal has been taken. Such appraisal shall be made pursuant to the provisions of this chapter and shall stand in lieu of the appraisal made by the Commissioner from which such appeal is taken.

  (d) Upon establishing its appraisal, such Superior judge shall notify, in writing, the State Treasurer and the Commissioner of the amount thereof, and a record thereof shall be made by the Commissioner in the book wherein appraisals of railroad property are recorded. Notice in writing shall likewise be given to the person or corporation operating the property thus appraised.

  (e) A party aggrieved by any action of the Superior judge may appeal to the Supreme Court. (Amended 1971, No. 185 (Adj. Sess.), § 232, eff. March 29, 1972; 1973, No. 106, § 13, eff. May 25, 1973; 1979, No. 181 (Adj. Sess.), § 19; 1997, No. 156 (Adj. Sess.), § 16, eff. April 29, 1998; 2021, No. 147 (Adj. Sess.), § 29, eff. May 31, 2022.)

• § 8362. Procedure

  The judge shall establish rules and regulations relative to the time and method of hearing and determining appeals as the judge shall deem just, provided that the appeal shall be finally determined and the appraisal by the judge made and established on or before June 1 following the appeals. The cost of the appeals shall be paid as the judge shall determine. The State Treasurer and the Attorney General shall represent the State in all such appeal proceedings unless the Attorney General is disqualified to act in the proceedings. In case of disqualification, the State shall be represented by the State Treasurer and by counsel as the State Treasurer may select with the approval of the Governor. Selected counsel shall be paid upon a warrant issued by the Commissioner of Finance and Management. (Amended 1983, No. 195 (Adj. Sess.), § 5(b); 2021, No. 105 (Adj. Sess.), § 571, eff. July 1, 2022.)

• § 8363. Appraisal invalid in part

  When an action is pending to recover a tax assessed upon an appraisal made under the provisions of articles 4 and 6 of this subchapter and it shall be therein determined that such appraisal is valid in part, the court shall render judgment for so much of such tax as is based upon that portion of such appraisal so determined to be valid. (Amended 1997, No. 156 (Adj. Sess.), § 17, eff. April 29, 1998.)

• §§ 8391-8393. Repealed. 1961, No. 275, § 4, eff. Aug. 1, 1961.

• § 8394. Petition and hearing for relief from taxes

  Upon the written petition of any railroad corporation operating a railroad located in whole or in part within this State, setting forth that the financial condition of such corporation is such that the payment of any taxes assessed against it under the provisions of this chapter would imperil the continued operation of such railroad and would be detrimental to the general good of the State, the Public Utility Commission shall fix a time and place for hearing thereon and give due notice thereof, including notice to the Attorney General who shall attend such hearing and represent the interests of the State. (Amended 1961, No. 275, § 1, eff. Aug. 1, 1961.)

• § 8395. Findings

  Upon hearing, if the Commission finds that the enforced payment of the taxes would imperil the continued operation of the railroad and that the suspension of collection thereof would promote the general good of the State, it shall certify its findings to the Governor in writing, together with its recommendations in connection therewith. Thereupon, the Governor, by executive order, may suspend the collection thereof for the period of one year. The suspension may be extended by the Governor from year to year upon certification of reviewed findings and recommendations by the Commission. Any unpaid tax, the payment of which is suspended under this section, shall continue to constitute a first lien upon the property of the railroad in accordance with section 8102 of this title, except that in the case of the sale of a part of the real property of any railroad whose taxes have been suspended under this section, the Governor, upon recommendation of the Commission, may release such lien from such real estate sold upon payment of a reasonable share of the proceeds towards such suspended taxes, and the balance of taxes remaining shall continue to constitute such a first lien upon the remaining property of the railroad. (Amended 1961, No. 275, § 2, eff. Aug. 1, 1961.)

• § 8396. Reducing tax claims in reorganization plans

  In the event that a plan for the financial reorganization of any such railroad corporation shall be proposed, involving as an element thereof, a compromise or reduction of the claim of the State for unpaid taxes, and notice thereof, together with the details of such plan or reorganization, including the method proposed for the liquidation of such claim for taxes be given to the Governor, he or she shall forthwith refer the matter to such Commission, which, with the assistance of the Attorney General, shall investigate the same and certify its findings in respect thereto to the Governor in writing, together with its recommendations thereon.

• § 8397. Acceptance of plan

  If the Commission finds and reports that the proposed plan of reorganization is fair, feasible, and practicable; that, if consummated, it will result in the continuous operation of the railroad for the benefit of the public served thereby; that there is a reasonable probability that it will be able to pay, when due, all taxes thereafter assessed against it by the State; that reduction of the claim for unpaid taxes due the State, in such amount as the Commission may recommend, is essential to the effective consummation of the plan; that the acceptance of the proposed compromise, the reduction of the claim in the amount recommended, and the cooperation by the State to the extent stated in carrying the proposed plan into effect will promote the general good of the State, the Governor, with the approval of the Emergency Board, may compromise, adjust, and settle the claim in accordance therewith. (Amended 1961, No. 275, § 3, eff. Aug. 1, 1961.)

• § 8398. Revocation of waiver or compromise upon failure of railroad

  Should any such railroad cease operation, whether because of failure of consummation of any feasible plan of reorganization or for any other reason, then and in such event the provisions of this article relating to suspension of collection of taxes and to waiver or remission of penalties or forfeitures shall not be operative. In such case, the provisions of this chapter relating thereto shall apply in all respects, anything herein to the contrary notwithstanding.

• Subchapter 003: Steamboat, Car, and Transportation Companies

• §§ 8431-8435. Repealed. 2006, No. 152 (Adj. Sess.), § 9, eff. June 7, 2006.

• Subchapter 004: Express Companies

• § 8461. Repealed. 1997, No. 156 (Adj. Sess.), § 18, eff. April 29, 1998.

• Subchapter 005: Telegraph Companies

• §§ 8491-8493. Repealed. 1997, No. 156 (Adj. Sess.), § 18, eff. April 29, 1998.

• Subchapter 006: Telephone Companies

• § 8521. Imposition and rate of tax

  (a) There is hereby assessed, upon each person or corporation owning or operating a telephone line or business within the State, a tax equal to 2.37 percent of net book value as of the preceding December 31 of all personal property of the taxpayer located within the State. The tax shall be paid to the Commissioner in equal monthly installments on or before the 25th day of each month of each taxable year.

  (b) For tax years beginning after July 1, 1983, “a person or corporation owning or operating a telephone line or business,” as used in this chapter, shall not include a person or corporation that is engaged in the resale of telephone transmission capacity but does not own or operate any telephone lines or transmission facilities within the State, but such person or corporation engaging in the resale of telephone transmission capacity shall be subject to income taxation under chapter 151 of this title.

  (c) The tax imposed by this section shall be in addition to any other taxes imposed by law, including the income tax imposed under chapter 151 of this title.

  (d) All the administrative provisions of chapter 151 of this title, including those relating to the collection and enforcement of the income tax by the Commissioner, shall apply to the tax imposed by this chapter.

  (e) There is hereby assessed, upon each person or corporation owning or operating a telephone line or business that received in calendar year 1990 at least $20 million in annual gross operating revenues within the State, a tax on its entire gross operating revenues from the State for the periods from July 1, 1991 through June 30, 1992. The tax for each separate fiscal year shall be determined by subtracting from an amount equal to 51/4 percent of the taxpayer’s gross operating revenues from the State for the fiscal year ending June 30, 1992, the total amount of tax paid by such persons or corporations under subsection (a) of this section during the fiscal year ending June 30, 1992, the amount of tax paid by such persons or corporations under chapter 151 of this title during the fiscal year ending June 30, 1992. The tax imposed by this subsection shall be paid to the Commissioner on or before June 30 of each year. The tax imposed by this subsection shall expire June 30, 1992.

  (f) When personal property is transferred during the year from a person or corporation subject to a tax imposed by this subchapter to another person or corporation that operates or will operate a telephone line or business in the State:

  (1) for months beginning after the date of transfer, the transferee shall include the net book value of the transferred property as of the date of transfer in the calculation of the tax due under subsection (a) of this section and the transferor shall exclude such value from its calculation of its tax under subsection (a); and

  (2) for the month during which the transfer occurs, the transferor shall include the net book value of the transferred property as of the preceding December 31 multiplied by the number of days during the month it owned the property and divided by the total number of days in the month, and the transferee shall include the net book value of the property as of the date of transfer multiplied by the number of days during the month it owned the property divided by the number of days in the month. (Amended 1961, No. 118, § 1, eff. Jan. 1, 1962; 1969, No. 144, § 14; 1985, No. 165 (Adj. Sess.), § 3, eff. May 5, 1986; 1987, No. 210 (Adj. Sess.), § 1; 1991, No. 32, § 38, eff. May 18, 1991; 1995, No. 29, § 18, eff. Jan. 1, 1996; 1995, No. 169 (Adj. Sess.), § 19, eff. May 15, 1996; 2015, No. 134 (Adj. Sess.), § 38, eff. Jan. 1, 2017.)

• § 8522. Alternative tax

  (a) A person or corporation owning or operating a telephone line or business that received in the preceding taxable year less than $50 million in annual gross operating revenues within the State may, in lieu of the tax imposed in section 8521 of this title and any income tax imposed under chapter 151 of this title, elect to pay to the State a tax equal to the percentage as set forth herein of its entire gross operating revenues from its operations within the State for the fiscal year ending June 30. Where the gross operating revenues during the quarter exceed $250.00 and do not exceed $1,250.00, the tax shall be 21/4 percent; exceed $1,250.00 and do not exceed $2,500.00, the tax shall be 21/2 percent; exceed $2,500.00, and do not exceed $5,000.00, the tax shall be 23/4 percent; exceed $5,000.00 and do not exceed $10,000.00, the tax shall be 3 percent; and the rate of tax shall be increased 1/4 of 1 percent for each additional $5,000.00 or fractional part thereof of such gross operating revenue. However, the rate shall in no event exceed 51/4 percent of the gross operating revenues.

  (b) The tax imposed by this section shall be paid to the Commissioner no later than 25 days following the last day of the third, sixth, ninth, and 12th month of each taxable year.

  (c) For any taxable year, a taxpayer shall give notice of its election to pay the tax imposed by this section by filing a quarterly gross receipts tax return no later than 25 days following the last day of the third month of the taxable year. No election to pay the tax imposed by this section shall be made by a taxpayer that did not make the election in the previous year. (Amended 1961, No. 118, § 2, eff. Jan. 1, 1962; 1961, No. 144, § 15; 1987, No. 210 (Adj. Sess.), § 2; 1995, No. 29, § 19, eff. Jan. 1, 1996; 2003, No. 152 (Adj. Sess.), § 10, eff. June 7, 2004.)

• § 8523. Repealed. 1987, No. 210 (Adj. Sess.), § 3.

• Subchapter 007: Insurance Companies

• § 8551. Imposition, rate, and basis of tax

  A domestic or foreign insurance company, association, or society, other than life, or a surety or guaranty company, doing business in this State, shall pay a tax to the State, which is hereby assessed at the rate of two percent per annum on the gross amount of premiums and assessments written on its business in this State, but not including premiums received for reinsurance. A domestic or foreign life insurance company doing business in this State shall pay a tax to the State, which is hereby assessed at the rate of two percent per annum on the gross amount of premiums and assessments collected on its business in this State, but not including premiums received for reinsurance.

• § 8552. Returns

  A domestic insurance company, association, or society, other than life, or surety or guaranty company shall pay a tax to the State on the gross amount of premiums and assessments written and not taxed in other states, and shall pay a tax to the State on the gross amount of premiums and assessments collected and not taxed in other states, and shall include such business in its returns. A domestic life insurance company shall pay a tax to the State on the gross amount of premiums and assessments collected and not taxed in other states and shall include such business in its returns. The term “taxed in other states” means:

  (1)(A) a tax imposed by another state on premiums and paid directly by the company, association, society, surety, guaranty, or life insurance company to such other state under an insurance premiums tax of the same general kind as found in chapter 211, subchapter 7 of this title; or

  (B) a corporate income or franchise tax in which the premiums taxed under subdivision (A) of this subdivision (1) are a factor in the computation thereof; or

  (2) a tax of the same general kind as found in 8 V.S.A. § 5035, imposed by another state upon surplus lines premiums, which is paid directly or indirectly to that state by agents or brokers of the Vermont domestic insurer that is not itself authorized to do business in that state. (Amended 1975, No. 185 (Adj. Sess.), § 1, eff. March 25, 1976.)

• § 8553. Time of payment

  Such tax shall be based upon the business of such company, association, or society during the year terminating with December 31 preceding. It shall be paid quarterly on or before the last day of the second calendar month following the quarter ending the last day of March, June, September, and December of each calendar year and shall be computed either upon the business of such company, association, or society during the quarter for which the payment is made or upon an estimated basis predicated upon prior years business, upon forms to be prescribed by the Commissioner of Taxes. Where the aggregate tax imposed upon a company, association, or society is reasonably expected to be less than $500.00 for the calendar year, it may be paid on an annual basis not later than the last day of February following the close of the year. Such company, association, or society shall annually make a final reconciliation return on or before the last day of February in the manner provided in section 8123 of this title. (Amended 1975, No. 67, § 1, eff. Jan. 1, 1976.)

• § 8554. Deductions

  In determining the amount of taxes to be assessed under the provisions of sections 8551 and 8552 of this title, there shall be deducted from the full amount of such premiums and assessments all sums paid for return premiums on cancelled policies upon risk located in this State and dividends actually paid or allowed to policyholders residing therein. Nothing in this section shall be construed to allow dividends in scrip, in stock, mutual or mixed companies, or surrender values for life policies to be considered return premiums.

• § 8555. Reciprocal provisions

  If another state or country imposes upon or requires of a domestic insurance, surety, or guaranty company or its agents doing business therein, taxes exceeding those imposed by this State upon or required of foreign insurance, surety, or guaranty companies doing business herein, an insurance, surety, or guaranty company organized under the laws of such other state or country and its agents doing business in this State, shall be subject to taxes similar to those so imposed in such other state or country, and the same shall be imposed, required, and enforced as like taxes are under the laws of this State.

• § 8556. Exemption

  For the purposes of this subchapter, a continuing care retirement community certified under 8 V.S.A. chapter 151 shall not be deemed to be an insurance company or other entity subject to the tax imposed by this subchapter. (Added 1987, No. 247 (Adj. Sess.), § 2.)

• § 8557. Vermont Fire Service Training Council

  (a)(1) Sums for the expenses of the operation of training facilities and curriculum of the Vermont Fire Service Training Council not to exceed $1,200,000.00 per year shall be paid to the Fire Safety Special Fund created by 20 V.S.A. § 3157 by insurance companies, writing fire, homeowners multiple peril, allied lines, farm owners multiple peril, commercial multiple peril (fire and allied lines), private passenger and commercial auto, and inland marine policies on property and persons situated within the State of Vermont within 30 days after notice from the Commissioner of Financial Regulation of such estimated expenses. Captive companies shall be excluded from the effect of this section.

  (2) The Commissioner shall annually, on or before July 1, apportion such charges among all such companies and shall assess them for the charges on a fair and reasonable basis as a percentage of their gross direct written premiums on such insurance written during the second prior calendar year on property situated in the State. The Department of Taxes shall collect all assessments under this section.

  (3) An amount not less than $100,000.00 shall be specifically allocated to the provision of what are now or formerly referred to as Level I, units I, II, and III (basic) courses for entry-level firefighters.

  (4) An amount not less than $150,000.00 shall be specifically allocated to the Emergency Medical Services Special Fund established under 18 V.S.A. § 908 for the provision of training programs for certified Vermont EMS first responders and licensed emergency medical responders, emergency medical technicians, advanced emergency medical technicians, and paramedics.

  (5) The Department of Health shall present a plan to the Joint Fiscal Committee that shall review the plan prior to the release of any funds.

  (b) All administrative provisions of chapter 151 of this title, including those relating to the collection and enforcement of the income tax by the Commissioner, shall apply to this section. (Added 1993, No. 87, § 1; amended 1995, No. 180 (Adj. Sess.), § 38(a); 1993, No. 186 (Adj. Sess.), § 29, eff. May 22, 1996; 2001, No. 143 (Adj. Sess.), § 6, eff. June 21, 2002; 2007, No. 190 (Adj. Sess.), §§ 33, 34; 2009, No. 42, §§ 13, 14; 2009, No. 137 (Adj. Sess.), § 28a; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2011, No. 139 (Adj. Sess.), § 51, eff. May 14, 2012; 2011, No. 143 (Adj. Sess.), § 62, eff. May 15, 2012; 2015, No. 134 (Adj. Sess.), § 19, eff. July 1, 2017; 2019, No. 51, § 35, eff. June 10, 2019; 2019, No. 166 (Adj. Sess.), § 30, eff. Oct. 1, 2020.)