§ 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.)