The Vermont Supreme Court upheld a superior court’s dismissal of an appeal of a sales and use tax assessment on golf tournament entry fees because the taxpayer failed to post security for the appeal. The taxpayer’s offer of a security interest in its assets was insufficient to satisfy the requirement to post security. Security could be posted by paying the deficiency; depositing the amount of the deficiency with the Commissioner of Taxes; or filing a bond in the amount of the portion of the deficiency in respect of which review was sought, and all costs and charges. The supreme court found that a 1998 amendment to the appeals statute was made for the purpose of clarifying existing law, which constituted a ”pay to play” statute. In addition, the court found that the appeal could not go forward based on the taxpayer’s post-audit remittance of taxes under protest.
The supreme court’s opinion can be viewed at http://info.libraries.vermont.gov/supct/current/op2011-220.html .
Vermont Golf Association, Inc. v. Department of Taxes, Vermont Supreme Court, No. 2011-220, August 10, 2012