The Vermont Statutes Online

Title 32 : Taxation and Finance

Chapter 103 : Department of Taxes; Commissioner of Taxes

Subchapter 001 : GENERAL PROVISIONS

• § 3113. Requirement for obtaining license, governmental contract, or employment

  (a) As used in this section, “agency” means any unit of State government, including agencies, departments, boards, commissions, authorities, or public corporation.

  (b) No agency of the State shall grant, issue, or renew any license or other authority to conduct a trade or business (including a license to practice a profession) to, or enter into, extend, or renew any contract for the provision of goods, services, or real estate space with any person unless the person shall first sign a written declaration under the pains and penalties of perjury that the person is in good standing with respect to or in full compliance with a plan to pay any and all taxes due as of the date the declaration is made, except that the Commissioner may waive this requirement as the Commissioner deems appropriate to facilitate the Department of Financial Regulation’s participation in any national licensing or registration systems for persons required to be licensed or registered by the Commissioner of Financial Regulation under Title 8, Title 9, or 18 V.S.A. chapter 221.

  (c) Every agency shall, upon request of the Commissioner, furnish a list of licenses and contracts issued or renewed by the agency during the reporting period; provided, however, that the Secretary of State shall, with respect to certificates of authority to transact business issued to foreign corporations, furnish to the Commissioner only those certificates originally issued by the Secretary of State during the reporting period and not renewals of such certificates. The lists shall include the name, address, Social Security or federal identification number of the licensee or provider, and other information as the Commissioner may require.

  (d) If the Commissioner determines that any person who has agreed to furnish goods, services, or real estate space to any agency has neglected or refused to pay any tax administered by the Commissioner and that the person’s liability for such tax is not under appeal, or if under appeal, the Commissioner has determined that the tax or interest or penalty is in jeopardy, the Commissioner shall notify the agency and the person in writing of the amount owed by the person. Upon receipt of such notice, the agency shall thereafter transfer to the Commissioner any amounts that would otherwise be payable by the agency to the taxpayer, up to the amount certified by the Commissioner. The Commissioner may treat any payment as if it were a payment received from the taxpayer. As used in this section, “any person who has agreed to furnish goods, services, or real estate space to any agency” includes a provider of Medicaid services that receives reimbursement from the State under Title 33.

  (e) No agency of the State shall make final payment of any amount owed under a contract that contemplates the employment of any person within the State or the use of any property within the State, or otherwise release any person from the obligations of any contract, unless the person shall first obtain a certificate issued by the Commissioner that the person is in good standing with respect to or in full compliance with a plan to pay any and all taxes due as of the date of issuance of the certificate.

  (f) Upon written request by the Commissioner and after notice and hearing to the licensee as required under any applicable provision of law, an agency shall revoke or suspend any license or other authority to conduct a trade or business (including a license to practice a profession) issued to any person if the agency finds that taxes administered by the Commissioner have not been paid and that the taxpayer’s liability for the taxes is not under appeal. For purposes of the findings, the written representation to that effect by the Commissioner to the agency shall constitute prima facie evidence thereof. The Commissioner shall have the right to intervene in any hearing conducted with respect to the license revocation or suspension. Any findings made by the agency with respect to the license revocation or suspension shall be made only for the purposes of the proceeding and shall not be relevant to or introduced in any other proceeding at law, except for any appeal from the license revocation or suspension. Any license or certificate of authority suspended or revoked under this section shall not be reissued or renewed until the agency receives a certificate issued by the Commissioner that the licensee is in good standing with respect to any and all taxes payable to the Commissioner as of the date of issuance of the certificate. Any person aggrieved by the decision of the agency may appeal the decision in accordance with the provisions of 3 V.S.A. chapter 25.

  (g) For the purposes of this section, a person is in good standing with respect to any and all taxes payable if:

  (1) no taxes are due and payable and all returns have been filed;

  (2) the liability for any taxes due and payable is on appeal;

  (3) the person is in compliance with a payment plan approved by the Commissioner; or

  (4) in the case of a licensee, the agency finds that requiring immediate payment of taxes due and payable would impose an unreasonable hardship. If the agency finds an unreasonable hardship, it may condition renewal on terms that will place the person in good standing with respect to any and all taxes as soon as reasonably possible.

  (h) Any person who knowingly makes or subscribes any return, statement, or other document under this title that contains or is verified by an unsworn written declaration that is made under the pains and penalties of perjury and that is not true and correct as to every material matter shall be fined not more than $10,000.00 and imprisoned not more than 15 years, or both.

  (i) No agency of the State shall hire any person as a full-time, part-time, temporary, or contractual employee unless the person shall first sign a written declaration under the pains and penalties of perjury that the person is in good standing with respect to or in full compliance with a plan to pay any and all taxes due as of the date the declaration is made. This requirement applies only to the initial hire of an individual into a position that is paid using the State of Vermont federal taxpayer identification number, other than as a county employee, and not to an employee serving in the position or who returns to any position in State government as a result of a placement right or reduction in force recall right. (Added 1985, No. 263 (Adj. Sess.), § 4, eff. June 4, 1986; amended 1991, No. 67, §§ 1, 2, eff. June 19, 1991; 1997, No. 50, § 9, eff. June 26, 1997; 1999, No. 49, § 42, eff. June 2, 1999; 2003, No. 70 (Adj. Sess.), § 33, eff. March 1, 2004; 2009, No. 1 (Sp. Sess.), § H.19, eff. June 2, 2009; 2013, No. 73, § 59; 2015, No. 57, § 47; 2021, No. 105 (Adj. Sess.), § 498, eff. July 1, 2022.)