§ 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 which 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.)