§ 10007. Withholding at source; payment

(a) The buyer or transferee of any land held by the seller or transferor for less than six years, shall withhold 10 percent of all consideration paid to the seller or transferor for such land, including 10 percent of all partial payments made pursuant to installment sales under section 10008 of this title. At the time any payment is made to the seller or transferor, the amounts withheld shall be remitted to the Commissioner of Taxes.

(b) Within 30 days of the sale or exchange of land, for which withholding is required under this section, the seller or transferor shall file a return with the Commissioner of Taxes setting forth the amount of the tax due pursuant to section 10003 of this title and the amount withheld by the buyer or transferee pursuant to subsection (a) of this section. The seller shall either remit with the return the balance of the tax due or make claim for a refund. Any refund not made by the Commissioner within 45 days of receipt of a valid claim shall accrue interest at the rate established pursuant to section 3108 of this title. For good cause shown and upon conditions set by him or her, the Commissioner may extend the time for filing the return and paying the tax required by this chapter.

(c) Notwithstanding either subsection (a) or (b) of this section, the seller or transferor may, in advance of the sale or exchange, pay the tax imposed by this chapter or obtain a written ruling from the Commissioner of Taxes that no tax is due under this chapter. In either case, the Commissioner shall certify to the seller or transferor that such payment has been made or that no tax is due. Upon receipt by the buyer or transferee of such certification from the seller or transferor, the buyer or transferee shall not be required to withhold under subsection (a) of this section.

(d) All taxes required to be paid or withheld under this chapter shall constitute a personal debt of the person liable to pay or withhold the same to the State of Vermont to be recovered in an action on this statute.

(e) An action may be brought to recover the amount of the taxes to be paid or withheld in the manner prescribed for recovering amounts owed for taxes under chapter 151 of this title. The amount of taxes to be paid or withheld shall be a lien in favor of the State of Vermont upon all property and rights to property, whether real or personal, belonging to the person liable for the tax or for the withholding. The lien shall be enforced in the manner prescribed by section 5895 of this title. (Added 1973, No. 81, § 8, eff. May 1, 1973; amended 1993, No. 49, § 21, eff. May 28, 1993; 1999, No. 49, § 67, eff. June 2, 1999.)