The Vermont Statutes Online

Title 32: Taxation and Finance

Chapter 230: Tax on Transferors of Nursing Homes

• § 9530. Definitions

  As used in this chapter unless the context requires otherwise:

  (1) “Commissioner” means the Commissioner of Vermont Health Access.

  (2) [Repealed.]

  (3) “Nursing home” means an institution, as defined in 33 V.S.A. § 7102(7), required to be licensed pursuant to 33 V.S.A. § 7103.

  (4) “Owner” means any natural person, association, trust, or corporation with an ownership interest in a nursing home.

  (5) “Secretary” means the Secretary of Human Services.

  (6) “Selling price” means the amount of the full actual consideration for the transfer, paid or to be paid, including the amount of any liens or encumbrances existing before the transfer and not removed.

  (7) “Transfer” means every sale or change of ownership of a Vermont nursing home owned by the transferor during the entire 12-year period immediately preceding the change in ownership and providing services to the State under a contract during the entire period, after which transfer the home will continue in operation. A transfer includes all changes in ownership, whether effected by the transfer of stock, shares, or assets, with the following exceptions:

  (A) the sale of stock or shares in a publicly traded corporation; or

  (B) the sale of stock or shares made solely as a method of financing (not as a method of transferring management or control) when the number of shares transferred does not exceed 25 percent of the total number of shares in any one class of stock; or

  (C) a change of ownership between related parties other than family members; or

  (D) a change of ownership between family members for less than full and reasonable consideration; or

  (E) such other transactions that the Commissioner may determine not to constitute a true change of ownership.

  (8)(A) “Family member” means spouses, parents, grandparents, children, grandchildren, siblings, aunts, uncles, nieces, nephews, or the spouse of such person.

  (B) “Related party” means a person that is directly or indirectly under common ownership or control or related by other business association or an entity in which an individual who directly or indirectly receives or expects to receive compensation in any form is also an owner, partner, officer, director, key employee of, or lender to the other entity.

  (9) “Transferor” means the owner of a nursing home who by the transfer has been divested of an ownership interest in the home. (Added 1995, No. 14, § 5, eff. April 12, 1995; amended 1995, No. 186 (Adj. Sess.), § 9, eff. May 22, 1996; 1999, No. 147 (Adj. Sess.), § 4; 2005, No. 174 (Adj. Sess.), § 65; 2009, No. 156 (Adj. Sess.), § I.32; 2021, No. 105 (Adj. Sess.), § 586, eff. July 1, 2022.)

• § 9531. Tax on transferor of a nursing home

  A tax is hereby imposed upon the transferor of any nursing home located in this State. The tax shall be eight percent of the selling price. (Added 1995, No. 14, § 5, eff. April 12, 1995; amended 1995, No. 186 (Adj. Sess.), § 10, eff. May 22, 1996.)

• § 9532. Repealed. 1995, No. 186 (Adj. Sess.), § 11, eff. May 22, 1996.

• § 9533. Tax liability, payment, and acknowledgement

  (a) The tax imposed by this chapter is the sole liability of the transferor and shall conclusively be presumed to have been paid by the transferor only.

  (b) The tax shall be paid by the transferor to the Department of Vermont Health Access within 10 days after the date of the transfer, accompanied by the nursing home transferor tax form prescribed by the Commissioner.

  (c) A nursing home transferor tax return filing shall not be required for changes in nursing home ownership that are not transfers as defined in subdivision 9530(7) of this chapter.

  (d) Notwithstanding anything to the contrary in 1 V.S.A. § 317 and section 3102 of this title, tax return filings made pursuant to this chapter shall be public information, subject to disclosure pursuant to 1 V.S.A. § 316.

  (e) Upon the receipt of the full amount of the tax, the Commissioner shall deposit receipts from the transferor tax into the General Fund. (Added 1995, No. 14, § 5, eff. April 12, 1995; amended 1995, No. 186 (Adj. Sess.), § 12, eff. May 22, 1996; 1999, No. 147 (Adj. Sess.), § 4; 2005, No. 174 (Adj. Sess.), § 66; 2009, No. 156 (Adj. Sess.), § I.33; 2019, No. 6, § 71, eff. April 22, 2019.)

• § 9534. Implementing rules

  The Secretary may adopt rules necessary to implement the provisions of this chapter. (Added 1995, No. 14, § 5, eff. April 12, 1995.)

• § 9535. Review and appeals

  (a) At any time before, or within 10 days after the date of a transfer of a nursing home, a transferor may request from the Commissioner a determination of the transferor’s liability to pay or the amount of the nursing home transfer tax due. The Commissioner shall render a decision within 30 days of the receipt of all information that the Commissioner deems necessary to make a determination.

  (b) Within 30 days of the date of issuance of the Commissioner’s determination, a transferor aggrieved by that determination may request review by the Secretary or the Secretary’s designee. This review shall not be subject to the provisions of 3 V.S.A. chapter 25. (Added 1995, No. 14, § 5, eff. April 12, 1995; amended 2005, No. 174 (Adj. Sess.), § 67; 2009, No. 156 (Adj. Sess.), § I.34.)