32 V.S.A. § 7777 — Records required; inspection and examination; assessment of tax deficiency

(a) Each licensed wholesale dealer and each retail dealer shall keep complete and accurate
records of all cigarettes, little cigars, and roll-your-own tobacco manufactured,
produced, purchased, transferred, and sold by the dealer. The records shall be of
such kind and in such form as the Commissioner may prescribe and shall be safely preserved
for six years in such manner as to ensure permanency and accessibility for inspection
by the Commissioner and authorized agents. The Commissioner or authorized agents of
the Commissioner may enter in or upon any premises where the Commissioner or they
have reason to believe that cigarettes, little cigars, or roll-your-own tobacco are
possessed, stored, or sold, for the purpose of determining whether the provisions
of this chapter or 33 V.S.A. chapter 19, subchapter 1A or 1B are being obeyed and may examine and copy the books, papers,
records, and the stock of any licensed wholesale dealer or retail dealer, for the
purpose of determining whether the tax imposed by this chapter has been fully paid.
(b) If the Commissioner determines that a licensed wholesale dealer has not purchased
sufficient stamps to cover sales of cigarettes and little cigars, or that a retail
dealer has made sales of unstamped cigarettes or little cigars or untaxed roll-your-own
tobacco, the Commissioner shall thereupon assess the deficiency in tax, plus interest
and penalties as provided in section 3202 of this title.
(c) In any case in which a licensed wholesale dealer cannot produce evidence of sufficient
stamp purchases to cover the dealer’s receipts and sales or other disposition of cigarettes
or little cigars, it shall be presumed that the cigarettes or little cigars were sold
without having the proper stamps affixed. In any case in which a licensed wholesale
dealer cannot produce proper evidence of payment of the tax on roll-your-own tobacco
to cover the dealer’s receipts and sales or other disposition of roll-your-own tobacco,
it shall be presumed that the roll-your-own tobacco was sold without the proper tax
having been paid.
(d) If a licensed wholesale dealer has failed to timely pay for stamps obtained for payment
within 10 days or to pay the tax imposed on roll-your-own tobacco, the dealer shall
be subject to assessment, collection, and enforcement in the same manner as provided
under subchapter 4 of this chapter.
(e) Any dealer who fails to pay the required tax to the Commissioner as required under
this chapter shall be personally and individually liable for the amount of such tax,
together with interest and penalties under the provisions of section 3202 of this title, and if the dealer is a corporation or other entity, the personal liability shall
extend and be applicable to any officer or agent of the corporation or entity who,
as an officer or agent, is under a duty to pay or transmit the tax to the Commissioner.
(f) As an additional or alternate remedy, the Commissioner may issue a warrant directed
to the sheriff of any county commanding him or her to levy upon and sell the real
and personal property that may be found within the sheriff’s county of any person
liable for tax under this chapter for the payment of the amount of the tax, penalties,
and interest, and the cost of executing the warrant, and the sheriff shall return
the warrant to the Commissioner and pay to the Commissioner the money collected by
virtue thereof within 60 days after the receipt of the warrant. The sheriff shall,
within five days after the receipt of the warrant, file with the county clerk a copy
thereof, and thereupon the clerk shall enter in the judgment docket the name of the
person mentioned in the warrant and the amount of the tax, penalties, and interest
for which the warrant is issued and the date when the copy is filed. Thereupon the
amount of the warrant so docketed shall become a lien upon the title to and interest
in real and personal property of the person against whom the warrant is issued. The
sheriff shall then proceed upon the warrant in the same manner and with like effect
as that provided by law in respect to executions issued against property upon judgments
of a court of record, and for services in executing the warrant, the sheriff shall
be entitled to the same fees, which may be collected in the same manner. If a warrant
is returned not satisfied in full, the Commissioner may from time to time issue new
warrants and shall also have the same remedies to enforce the amount due thereunder
as if the State had recovered judgment therefor and execution thereon had been returned
unsatisfied.
(g) If any dealer required to pay and transmit a tax under this chapter neglects or refuses
to pay the same after demand, the amount, together with all penalties and interest
provided for in this chapter and together with any costs that may accrue in addition
thereto, shall be a lien in favor of the State of Vermont upon all property and rights
to property, whether real or personal, belonging to such dealer. Such lien shall arise
at the time demand is made by the Commissioner of Taxes and shall continue until the
liability for such sum with interest, penalties, and costs is satisfied or becomes
unenforceable. Such lien shall have the same force and effect as the lien for taxes
withheld under the withholding provisions of the Vermont income tax law as provided
under section 5895 of this title, and notice of such lien shall be recorded as is provided in that section. Certificates
of release of such lien shall also be given by the Commissioner as in the case of
the aforesaid tax liens. (Amended 1971, No. 73, § 30, eff. April 16, 1971; 1981, No. 31, § 13; 1995, No. 169 (Adj. Sess.), § 18, eff. May 15, 1996; 2001, No. 140 (Adj. Sess.), § 38; 2003, No. 14, § 4; 2013, No. 14, § 17; 2015, No. 57, § 78, eff. June 11, 2015.)