§ 5409. Duties of municipalities and administration
The following shall apply with regard to the statewide education tax imposed under
this chapter:
(1) Late payments of the tax by a municipality to the State shall be assessed interest
at a per diem rate of eight percent per annum of the amount due. If a payment is more
than 90 days overdue, any State funds due the municipality shall be withheld.
(2) If by August 1 a municipality has failed to issue notices of assessment of the statewide
education tax, or if the municipality fails for more than 90 days after the due date
for any installment payment to enforce the tax in the municipality, then the Commissioner
of Taxes shall either issue notices of assessment or collect the tax, or both, or
bring appropriate court action to require the municipal officials to issue notices
and collect the tax, as the Commissioner deems necessary.
(3) In any case of administration under subdivision (2) of this section by the Commissioner
of Taxes of education property tax:
(A) Sections 3202, 3203, 5868, 5882–5887, and 5891–5895 of this title, as amended, shall
apply in the same manner as to income tax.
(B) Persons aggrieved by decisions of the listers may appeal in the manner provided for
property tax appeals in chapter 131 of this title, and the Commissioner of Taxes shall
have all the powers described in chapter 133 of this title.
(C) The Commissioner may abate in whole or in part the statewide education taxes of a
taxpayer who has been granted an abatement of municipal taxes under 24 V.S.A. § 1535.
(4) [Repealed.]
(5) In case of insufficient property tax payment by a taxpayer to a municipality, payments
shall be allocated first to municipal property tax and next to statewide education
tax. In case of insufficient payment by a taxpayer to the Department of Taxes, payments
shall be allocated first to liabilities other than education taxes and next to education
tax.
(6) In case of overpayment by a taxpayer who has an income tax liability under chapter
151 of this title and a homestead property tax liability, a refund of the overpayment,
after accounting for any benefit amount allowed under chapter 154 of this title, shall
be deemed to be a refund of income tax for purposes of debt setoff under chapter 151,
subchapter 12 of this title.
(7) Notwithstanding section 435 of this title, the Commissioner shall deposit the revenue from taxes imposed under this chapter
in the education fund.
(8) A municipality’s liability to the State for education taxes shall not be reduced by
any early payment property tax discount or similar discount offered by the municipality. (Added 1997, No. 60, § 45, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 11, eff. Jan. 1, 1998; 1997, No. 71 (Adj. Sess.), § 75, eff. January 1, 1999; 1997, No. 156 (Adj. Sess.), § 50, eff. April 29, 1998; 2003, No. 68, § 21, eff. June 18, 2003; 2019, No. 14, § 78, eff. April 30, 2019; 2021, No. 105 (Adj. Sess.), § 530, eff. July 1, 2022.)