Gravel & Shea PC

Officials Roll Out Changes to Vermont Room and Meals Tax, Sales and Use Tax and Burlington Gross Receipts Tax

March 24, 2020

In response to the Covid-19 pandemic, both the State of Vermont and City of Burlington are taking steps to support affected businesses to the extent possible.

Most recently, the State of Vermont Department of Taxes announced that it will provide temporary relief to Vermont businesses subject to Meals and Rooms Tax or Sales and Use Tax.  Businesses that are unable to meet the March 25, and April 25 filing and payment deadlines will not be charged penalties or interest for late payments.  Additional details can be found at: https://tax.vermont.gov/business-and-corp/meals-and-rooms-tax.  The Department notes that this is not presently an abatement of the tax collected; as such, the tax remains due.  Since any tax abatement would have to come from the Vermont Legislature, we are tracking this issue closely and will report out any change to the tax laws that may be implemented in the coming weeks.

Separately, the City of Burlington, as part of its Covid Response Plan, agreed to provide a one-time relief subsidy to Burlington businesses. Specifically, such businesses will not be required to pay gross receipts tax to the City of Burlington for taxes collected between March 1, 2020 and June 30, 2020.  This is an abatement of the gross receipts tax for this limited time period.

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 FOR MORE INFORMATION

For more information about the tax relief measures, please contact Chip Mason at cmason@gravelshea.com or your attorney at Gravel & Shea PC.

 

 

Gravel & Shea PC March 24, 2020