Rule No.1
Organization and Operation
(a) Organization.
The Department of Taxes is established by
3 V.S.A. §
212.
32 V.S.A. §
3101 provides that the Department shall be
administered by a Commissioner of Taxes, who is appointed biennially by the
Governor with the advice and consent of the Senate.
3 V.S.A. §
253 provides that the Commissioner may
appoint a Deputy, with approval of the Governor, who shall perform such duties
as the Commissioner shall direct.
There is a Division of Property Valuation and Review which,
through its Director, shall assist listing officials, conduct the equalization
study of municipalities grand lists, set education tax rates and assist the
Commissioner in administration of various property related programs and
taxes.
The Commissioner shall organize the Department into such
other divisions and appoint such other directors as in the Commissioner's
judgment promote the fair and efficient administration of taxes within the
Commissioner's jurisdiction.
(b) Location and Assistance to the Public.
The main office of the Department of Taxes is located at 133
State Street, Montpelier, immediately west of the State House. The telephone
number in (802) 828-2505. The hours of work are 7:45 a.m. to 4:30 p.m., Monday
through Friday. Persons having business with the Department or requesting
assistance may write or call the Department, may come to the main office during
working hours., or may contact the Department through the VTtax system if the
person is registered in that system.
(c) Tax Department Forms.
The Department utilizes a wide variety of forms in the
administration of the tax laws. The forms are changed frequently to reflect
changes in law and for administrative reasons. Forms are available on the
Department's website, tax.vermont.gov, and at the main office of the Tax
Department. Commonly used forms, such as income tax returns, are available at
Town Offices across Vermont. Additional information on Vermont tax requirements
are available at public libraries. In most cases, Department forms must be used
to accomplish the transaction in question, such as when reporting income,
transferring property or claiming exemption from sales tax. Many tax forms may
be completed and filed electronically and in some cases, electronic filing is
required.
(d) Tax
Department Guidance.
The Department issues formal regulations interpreting the tax
laws and establishing procedures. From time to time it issues technical
bulletins, fact sheets, and other notices which are a less formal way of
providing information to taxpayers. Instructions also accompany tax
forms.
Rule No.2
Definitions
The definitions set forth in
3 V.S.A. §
801 are hereby adopted and made applicable to
these Rules.
Rule No.3
Formal and Informal Proceedings
The following types of proceedings will be treated as formal
proceedings that are governed by the provisions of Chapter 25 of Title 3, the
Vermont Administrative Procedure Act:
(a) Proceedings wherein a determination by
the Commissioner of Taxes is required by statute to be made after an
opportunity for hearing. These proceedings are referred to as
appeals.
(b) Rule-making
proceedings under the Vermont Administrative Procedures Act.
(c) Requests for declaratory rulings.
All other petitions, applications, submissions, requests,
charges, etc. will be treated as informal proceedings.
Rule No.4 Appeals
(a)
Right to Appeal. A taxpayer
or claimant (hereinafter in this rule references to taxpayer includes claimant)
may appeal to the Commissioner any action of the Department for which appeal is
provided by law including assessment, denial in part or whole of a refund
claim, denial or reduction of a property tax adjustment or renter rebate,
suspension or revocation of a license or certificate, requirement of a bond and
notice of development or discontinuance, by filing a written notice of appeal
as provided by Rule
6 herein within the time allowed by
statute for appeal. The notice of appeal should advise the Department of the
reason for the appeal.
(b)
Prehearing Meeting. Prior to hearing, the taxpayer may elect to
meet informally with the Department's representative. The purpose of such a
meeting is to resolve or narrow the issues in dispute to the extent consistent
with law. In evaluating any settlement proposal or resolution of the appeal,
the Department shall consider evidence and arguments that support the
taxpayer's position, hazards of litigation, factors affecting collectability of
an assessment, equity among taxpayers and the requirements of law. A taxpayer
is not required to meet prior to the hearing. At the taxpayer's option, the
prehearing meeting may be conducted by telephone.
(c)
Right to a Hearing. A
taxpayer who appeals as provided above has the right to a hearing before the
Commissioner or at the Commissioner's discretion, the Commissioner's designated
hearing officer (hereinafter in this rule references to Commissioner includes
the Commissioner's designated hearing officer).
(d)
Commissioner's Hearing. If
the Department and taxpayer (referred to herein as the "parties") are unable to
resolve all issues, the matter will be docketed for hearing before the
Commissioner. The hearing is the parties' opportunity to present evidence to
the Commissioner in support of their respective positions. The admissibility of
evidence will be determined pursuant to
3 V.S.A. §
810(1)-(4) which is attached
hereto as Appendix A. Notice of hearing shall be mailed to the taxpayer at the
last address provided by the taxpayer to the Department no less than three
weeks before the date of the hearing unless the parties agree to a shorter
notice period. The parties and witnesses shall be present at the hearing except
as follows:
(1) the facts may be presented to
the Commissioner by written stipulation of the parties at any time prior to the
hearing.
(2) upon the
Commissioner's grant of a taxpayer's motion supported by good cause, a hearing
may be conducted over the telephone:
The testimony of a witness on direct examination may be
submitted in writing upon written approval of the Commissioner or designated
hearing officer, but only if the witness will be made available at the hearing
for questioning on the witness's qualifications on the matter at issue and for
cross-examination. A copy of the testimony shall be supplied to the opposing
party and the hearing officer no less than two weeks in advance of the hearing.
Written testimony shall be subject to the same rules of admissibility and
cross-examination as oral testimony at the hearing.
At the end of the hearing the Commissioner's record is closed
and the findings of fact made by the Commissioner shall be based exclusively on
the evidence and matters officially noticed as required by the Vermont
Administrative Procedure Act.
(e)
Continuance of Hearing. A
hearing will be continued only by leave of the Commissioner which may be
granted upon written motion showing just cause, such as, but not limited to:
(1) complexity of legal or factual
issues;
(2) newly discovered
evidence which by due diligence could not have been discovered in time for the
hearing;
(3) illness;
(4) a scheduling conflict;
(5) stipulation of the parties.
(f)
Post Hearing
Filings. Following the hearing and within the time prescribed by the
Commissioner, the parties may file proposed findings of fact and/or memoranda
of law. The Commissioner may request the parties to file proposed findings of
fact and / or memoranda of law. The time for filing may be extended only upon
motion granted by the Commissioner.
(g)
Transcript. Hearings shall
be recorded by the Commissioner and shall be transcribed on the request of any
party to a pending appeal and upon payment by the requesting party of the
reasonable costs thereof.
Rule
No.5 Appearances in Appeals
(a) A
party to an appeal before the Commissioner may appear for himself or herself or
in the case of a corporation, partnership, trust, municipality or other entity
created by law, through its duly authorized agent, or the party may be
represented by either an attorney or a certified public accountant, if such
representative is currently licensed to practice in the State of Vermont. The
name of the attorney or certified public accountant or person who has signed
the appeal letter or a subsequent notice of appearance will be entered in the
Department's records. A representative must submit a completed power of
attorney on the Department form, executed by the taxpayer.
(b) All notice given to or by a party's
representative of record shall be considered in all respects as notice to or
from the party until such time as the represented party notifies the Department
that the representative of record is no longer authorized as the party's
representative.
(c) An attorney or
certified public accountant not residing or not licensed to practice in the
State of Vermont may appear for a party if he or she is associated with a
resident and licensed attorney or certified public accountant who has entered
his or her appearance for the same party.
Rule No.6 Filing and Service of Documents in
Formal Proceedings
(a) Notices of appeal,
shall be in writing and delivered to the Vermont Department of Taxes, 133 State
Street, Montpelier, VT 05633-1401; Delivery may only be by mail, email or
through the MyVTax system. Filing with the Department shall be deemed to occur
when a mailed document is marked as received by the Department, when a document
is delivered to the Department in person, and when an email, or MyVTax
submission is received by the Department.
(b) Every document filed by a party
subsequent to the initial notice or request in a formal proceeding shall be
served upon the attorney of record if there is one and if not, upon the other
party. Service upon an attorney or upon a party shall be made by delivering a
copy to him or her or by mailing it to him or her at the last known address.
Delivery of a copy means handing it to his or her representative or to the
party, or leaving it at his office with the person in charge thereof or, if the
office is closed or the person to be served has no office, leaving it at his
dwelling house or usual place or abode with some person of suitable age and
discretion then residing therein. Service by mail shall mean first-class mail,
in a sealed and properly stamped envelope. Service by mail is deemed complete
upon posting the mail in a proper United States Post Office receptacle.
Rule No.7 Requests for
Rule-Making and Declaratory Rulings under 3 VSA Section 808 and 831(c)
(a) The Department shall initiate rulemaking
to adopt as rule an existing practice or procedure when so requested by 25 or
more persons or by the Legislative Committee on Administrative Rules.
(b) Upon request of a taxpayer, the
Department will issue a declaratory ruling as to the applicability of any
statutory provision or of any rule or practice of the Department. Declaratory
rulings may be obtained only for actual, not hypothetical or possible, fact
situations. If the applicability of a Vermont statute depends upon the how
federal law applies to the facts, the Department may require the taxpayer to
have obtained a letter ruling from the Internal Revenue Service prior to
obtaining a declaratory ruling on the application of Vermont law. A written
ruling will be made within sixty days of receipt of the facts involved and the
point of interpretation as to which the ruling is requested, unless additional
time is required due to the complexity of the request. If additional time is
needed, the requester shall be notified within the original sixty days of the
date by which the ruling is expected to be issued.
(c) Requests for rulemaking and for
declaratory ruling must be in writing, signed by the taxpayer or taxpayer's
representative, and delivered in the same manner as required for delivery of
notices of appeal in Rule
6.
Rule No.8 Licenses and Certificates
An application for a license or certificate shall be
submitted on a completed official application form. The Commissioner may
consider any credible information in the application or exhibits filed
therewith or otherwise available to the Department in determining whether to
impose a bond requirement with respect to the applicant or a related business.
If a bond is required, that requirement may be appealed as provided in Rule
4 herein.
