Miscellaneous Taxes

Bank Franchise Tax  
Captive Insurance Premium Tax
Cigarette Tax and Tobacco Products Tax
Fuel Tax
Health Care Claims Tax
Insurance Premium Tax
Malt Beverage Tax and Vinous Beverage Tax
Solar Energy Capacity Tax 
Solid Waste Tax 
Surplus Lines Insurance and Direct Insurance Placement Tax 
Telephone Gross Receipts Tax and Telephone Personal Property Tax
Wind-Powered Electric Generating Facility Tax


BANK FRANCHISE TAX

The Bank Franchise Tax is paid by banks and other financial institutions with Vermont deposits. The tax is computed monthly on average monthly deposits for the previous 12 months.  Beginning January 1, 2017, tax is paid monthly, with a return filed quarterly. This tax is in lieu of corporate income tax.

Effective January 1, 2017: Monthly Payments, Quarterly Return

Beginning January 1, 2017, Bank Franchise Tax is estimated and paid monthly, with a payment due on the 25th day of the following month. The first monthly payment is due by February 27, 2017 (since February 25 falls on a Saturday), for the month of January 2017. For the first two months of each quarter, make estimated payments using myVTax. Select MAKE A PAYMENT located under the I WANT TO section.

In order to avoid an underpayment of your estimated tax, which may result in penalty and interest charges, your estimated monthly payments for each of the first two months of any quarter must either be:

  • equal to 100% of the tax due for the previous month’s tax, or
  • 90% of the month’s actual tax liability as computed at the end of the quarter.

The Bank Franchise Tax Return is filed quarterly, due the 25th day of the month following the end of the quarter. Compute tax due for each of the months in the quarter. Reconcile the amount due with amounts paid as estimates for the first two months in the quarter, and pay the third monthly payment with the Return. 

Due Date
Beginning January 1, 2017: Bank Franchise Tax is estimated and paid monthly, with a payment due on the 25th day of the following month.

   

Mandate for Electronic Filing of Returns
Filing the Bank Franchise Tax Return online through the Vermont Department of Taxes new online system, myVTax, has been mandated by the Commissioner of Taxes. See myVTax resource center for information about our new online filing system.

Register, file your return, and pay taxes due at myVTax.

Affordable Housing Tax Credits or Downtown & Village Center Tax Credits

Every bank that has Affordable Housing Tax Credits or Downtown & Village Center Tax Credits

  • carried forward from a previous period, or 
  • newly allocated to the bank during the period reported, or 
  • expired/disposed of during the period, or 
  • applied during the period reported, 

must complete the Bank Franchise Affordable Housing Tax Credits and/or Downtown & Village Center Tax Credits Worksheets, as applicable, and attach the completed worksheets to the return together with supporting documentation. These worksheets provide detail required to review Bank Franchise Tax credits.

If you have any questions, contact our Bank Franchise Tax examiner at (802) 828-6839.


CAPTIVE INSURANCE PREMIUM TAX

The Captive Insurance Premium Tax is paid by captive insurance companies licensed by the Department of Financial Regulation. The tax is computed annually on premiums collected.

Due Date
Captive Insurance Premium Tax is filed and paid annually. The return and tax are due by the last day of February. There are no estimated payments due.

   

Mandate for Electronic Filing of Returns
Filing online through the Vermont Department of Taxes new online system, myVTax, has been mandated by the Commissioner of Taxes. See the myVTax resource center for information about our new online filing system.

Register, file your return, and pay taxes due at myVTax. If you have any questions, contact our Insurance Premium Tax and Captive Insurance Premium Tax examiner, (802)828-6838.

Helpful Information
8 V.S.A. § 6014 Tax on premiums collected


CIGARETTE TAX AND TOBACCO PRODUCTS TAX

Cigarette or Tobacco Tax is paid by the following;

  1. licensed wholesale dealers on the purchase of cigarettes or other tobacco products for resale;
  2. retailers if purchasing from unlicensed out-of-state wholesale dealers

Please see our list of licensed cigarette and tobacco dealers who have consented to have their name and address posted on the website.  Retailers may contact Miscellaneous Taxes to verify if a dealer who is not included on the list is currently licensed by the Tax Department. Tax on cigarette and little cigar packs is paid by licensed wholesale dealers who purchase cigarette tax stamps directly from the Department.

Due Date
Cigarette Tax and Tobacco Products Tax are filed and paid monthly. The return and tax are due 15 days following the end of the month. A return must be filed each month by every licensed wholesale dealer, even when no tax is due.

   

Filing Returns
Form CT-640, Wholesale Cigarette Dealer Report
Form TO-641, Wholesale Tobacco Dealer Report
Form CT-645, Vermont Wholesale Dealers Claim for Cigarette Stamp Tax Refund

Other Required Reports

Cigarette Stamp Order
Form CT-642 Cigarette Tax Stamp Order

Helpful Information
Cigarette and Tobacco Rates
Cigarette and Tobacco Products Chart
32 V.S.A. Chapter 205 Cigarettes and Tobacco Products


FUEL TAX

The Fuel Tax is paid by retail sellers of the following:

  • Heating oil
  • Propane
  • Kerosene and other dyed diesel fuel delivered to a residence or business
  • Natural gas
  • Electricity
  • Coal

There are several exemptions that apply to the Fuel Tax.  Please see the instructions for more details.

Beginning July 1, 2016, the rate and structure of the tax has changed. The new rate schedule is as follows:

Fuel Type Rate
Heating oil, propane, kerosene, and other dyed diesel fuel delivered to a residence or business $0.02/gallon
Natural gas and coal 0.75%
Electricity 0.5%

For natural gas, coal, and electricity, the tax is computed on the retail sale price of the fuel.

There is an additional petroleum distributor licensing fee for heating oil, kerosene, and other dyed fuel delivered to a business or residence. This licensing fee has been extended, and will terminate on April 1, 2021.

Due Date
The final quarterly Fuel Tax Return (Formerly Fuel Gross Receipts Tax) and the petroleum distributor licensing fee is due January 25, 2017, for fuel sold in October, November, and December 2016. This can be filed in myVTax.

Thereafter, the Fuel Tax and petroleum distributor licensing fee is filed and paid monthly, beginning with the January 2017 reporting period due February 27, 2017. The return and tax are due 25 days after the end of each calendar month, and can be filed in in myVTax.

   

Filing Returns
The Fuel Tax (Formerly Fuel Gross Receipts Tax) returns and payments may now be electronically filed and paid using myVTax. See the myVTax Resource Center for information about our new online filing system.

Register, file your return, and pay taxes due at myVTax. Information regarding the retailer election can be found here.

Beginning Jan. 1, 2017: The Fuel Tax may be itemized on a delivery ticket, invoice, or statement.

  • If a fuel dealer chooses to itemize, for 2017, the following notice must be included on an invoice or bill:
    • “In 2016, the fuel gross receipts tax, in place since 1990, was converted from a tax based on the price of fuel to a tax based on the volume of fuel sales in order to provide a more stable funding source for low-income weatherization programs.” Sec. 39a. of Act 134 of 2016.
  • After 2017, if a fuel dealer chooses to itemize, the invoice must include a statement that says the tax is “for support of Vermont’s Low Income Home Weatherization Program.” 33 V.S.A. § 2503(b).

Helpful Information
33 V.S.A. § 2503 Fuel Gross Receipts Tax


HEALTH CARE CLAIMS TAX

The Health Care Claims Tax is paid by insurance companies offering health insurance, companies that self-insure employees’ health coverage, third-party administrators, and pharmacy benefit managers. The tax is computed on health insurance claims paid for the fiscal year beginning July 1 and ending June 30.

Due Date
Health Care Claims Tax is filed and paid annually. The return and tax are due January 1 following the end of the fiscal year.

   

Mandate for Electronic Filing of Returns
Filing online through the Vermont Department of Taxes new online system, myVTax, has been mandated by the Commissioner of Taxes.  See myVTax resource center for information about our new online filing system.

Register, file your return, and pay taxes due at myVTax. If you have any questions, contact our Health Care Claims Tax examiner, (802) 828-6880.

Helpful Information
32 V.S.A. Chapter 243 Health Care Claims Tax


INSURANCE PREMIUM TAX

The Insurance Premium Tax is paid by domestic and foreign insurance companies doing business in Vermont. The tax is computed annually on premiums written (or premiums collected for life insurance companies). Quarterly estimates must be paid based on business during the quarter or estimated based on the prior year’s income.

Due Date
Estimates for the Insurance Premium Tax are filed on the last day of May, August, and November. The final payment is due with the return. The return, with final reconciliation and payment of tax, is due on the last day of February.

   

Mandate for Electronic Filing of Returns
Filing the Vermont Insurance Premium Tax online through myVTax has been mandated by the Commissioner of Taxes. See myVTax resource center for information about our new online filing system. 

Register, file your return, and pay taxes due at myVTax. If you have any questions, contact our Insurance Premium Tax and Captive Insurance Premium Tax examiner, (802) 828-6838.

Estimated Payments
We strongly encourage you to use myVTax to make your estimated payments. You can make an estimated payment using ACH debit without logging into your account. Select  Make a Payment under Businesses at the bottom of the page. Select Insurance Premium as the account type and select Estimated Payment when you arrive at a screen asking you for the payment type.

If you cannot pay your estimated payments using myVTax, you may send us your paper check together with the estimated payment voucher, Form IPT-632 Estimate of Insurance Premium Tax.

Helpful Information
32 V.S.A. Chapter 211, Subchapter 7 Insurance Companies


MALT AND VINOUS BEVERAGE TAX

Malt and Vinous Beverage Taxes are paid by bottlers and wholesalers of malt and vinous beverages. The tax is computed on gallons sold by bottlers or wholesalers. Act 144 of 2016 updated the filing frequency for the Malt and Vinous Beverage Tax. Beginning July 1, 2016, the tax is paid monthly or quarterly.

Due Date
The Malt and Vinous Beverage Tax is due on or before the 25th of the month following the reporting period end date. Every licensed bottler or wholesaler must file a return each month or quarter, even when no tax is due.

Your filing frequency is determined by the Department. If you are unsure if you should file quarterly or monthly, please contact us

   

Filing Returns
Form MBT-605, Malt Beverage Tax Return
Form VBT-606, Vinous Beverage Tax Return

The following worksheets are provided to assist you in calculating gallons to be reported on the Malt and Vinous Beverage Returns.  These worksheets are for your convenience and for your internal use only.  Do not submit worksheets with your return.

Gallons Worksheet
Purchase Inventory Worksheet

If you have any questions regarding filing a return, contact our Malt and Vinous Beverage Tax examiner, (802) 828-6839.

Reporting
Under Vermont law, businesses that sell malt and vinous beverages to retail dealers are required to submit a report of the description, quantity, and price of those beverages. The report is due at the same time as the malt and vinous beverage tax return. Bottlers and wholesalers are required to submit electronically but manufacturers are allowed to submit electronically or non-electronically. Please see our fact sheet for more information about submitting a report.

If you have any questions regarding the reporting requirements, contact the Compliance division, (802) 828-2514.

Helpful Information
7 V.S.A. § 421 Tax on Malt and Vinous Beverages
 


SOLAR ENERGY CAPACITY TAX

The Solar Energy Capacity Tax (formally known as the Uniform Capacity Tax) is paid by the owners of solar plants with nameplate capacity equal to 50kW or greater. The tax is computed on the capacity of the solar plant, expressed in kW, and is paid annually for plants that are in operation as of December 31, of the tax year.

Please note: Recent legislation has changed the exemption for low-capacity solar plants. The Uniform Capacity Tax now applies to solar renewable energy plants with a nameplate capacity of 50kW or greater. If your solar plant has nameplate capacity of less than 50kW, there is no tax due beginning with the current tax year.

Due Date
The return and tax are due not later than April 15 of the following year.

   

Filing Returns
Please note: If your solar plant has nameplate capacity of less than 50kW, there is no tax due beginning with the 2015 tax year.

Form SE-603, Solar Energy Capacity Tax and Instructions
Form SE-603A, Solar Energy Capacity Tax Explanation

Please complete and submit Form SE-603A, Solar Energy Capacity Tax Explanation, if your solar plant has a nameplate capacity of 50kW or greater, and you believe you are not subject to the solar energy capacity tax.

Helpful Information
32 V. S. A. Chapter 215 § 8701 Renewable Energy


SOLID WASTE TAX

The Solid Waste Tax is paid by municipalities and facilities certified by the Agency of Natural Resources (ANR) for waste delivered for disposal or incineration, and by haulers permitted by ANR to haul waste to out-of-state facilities. The tax is computed monthly, based on the number of tons of waste delivered for disposal or incineration by municipalities or certified facilities, or waste hauled by permitted haulers to out-of-state facilities.

Due Date
Solid Waste Tax is filed and paid quarterly. The return and tax are due the 30th day of the month following the end of each calendar quarter: i.e., April 30, July 30, October 30, and January 30.

   

Filing Returns
Form SWT-608, Franchise Tax on Waste Facilities and Commercial Haulers of Solid Waste

Helpful Information
32 V. S. A. Chapter 151 § 5951-5954 Franchise on Waste Facilities


SURPLUS LINES INSURANCE AND DIRECT INSURANCE PLACEMENT TAX

SURPLUS LINES TAX

The Surplus Lines Tax is paid by surplus lines brokers licensed by the Department of Financial Regulation (DFR). The tax is computed on net gross premiums.

Due Date
The report and tax are due the last day of the month following the end of each calendar quarter, i.e., April 30, July 31, October 31, and January 31.

   

Filing Returns

New Forms
Beginning with the report for the quarter ending December 31, 2016, due January 31, 2017, use the new Return and Schedules below. See our detailed instructions for more information.

SLT-681 Vermont Surplus Lines Insurance and Direct Insurance Placement Tax Return and Report
SLT-683 Premium and Policy Count Summary – By Company and Line

Please note: Form SLT-682 Vermont Surplus Lines Broker Report of Business is no longer required beginning with the report for the quarter ending March 31, 2017, due April 30, 2017. Please disregard instructions regarding Form SLT-682. The instructions linked above will be updated shortly.

If you have any questions, contact our Surplus Lines Insurance Tax examiner, (802) 828-6838.

Helpful Information
8 V.S.A. § 5035 Surplus lines tax

DIRECT INSURANCE PLACEMENT TAX

The Direct Insurance Placement Tax is paid by all insureds who procure or continue or renew insurance from any non-admitted insurer pursuant to 8 V.S.A. § 5036. The tax is computed on net gross premiums.

Due Date
The report and tax are due March 1 of the year following the year in which the insurance is procured, continued, or renewed.

   

Filing Returns

New Forms
Beginning with the report for the year ending December 31, 2016, due March 1, 2017, use the new Return and Schedule below. See our detailed instructions for more information.

SLT-681 Vermont Surplus Lines Insurance and Direct Insurance Placement Tax Return and Report
SLT-684 Vermont Direct Insurance Placement Reporting Form

If you have any questions, contact our Insurance Tax examiner, (802) 828-6838.

Helpful Information
8 V.S.A. § 5036 Direct placement of insurance


TELEPHONE BUSINESS TAX

The Telephone Personal Property Tax or alternatively, the Telephone Gross Receipts Tax, is paid by companies owning or operating a telephone business. The Telephone Personal Property Tax is computed annually based on the net book value of the telephone personal property (also known as the plant) as of December 31. It is paid the following year in monthly installments, in addition to corporate or business income tax.

Beginning January 1, 2017, Telephone Personal Property Tax is paid monthly, with a payment due on the 25th day of each month of the calendar year.  The first monthly payment will be due January 25, 2017, for the personal property valuated as of December 31, 2016.  For the first two months of each year, make estimated payments.

In order to avoid an underpayment of your estimated tax, which may result in penalty and interest charges, your estimated monthly payments for each of the first two months of the calendar year must either be:

  1. Equal to one-twelfth (1/12th) of 100% of the tax due for the previous year’s tax, or
  2. one-twelve (1/12th) of 90% of the year’s actual tax liability.

Use the Payment Voucher to make the installment payments for each month in 2017, except for the payment due March 25, 2017 which is paid with the return.

The Telephone Personal Property Tax Return is filed annually, by March 25. Reconcile the amount due as the March 25 payment with amounts paid as estimates for the first two months in the year, and pay the reconciled third monthly payment with the Return.

The Telephone Gross Receipts Tax is an alternative tax that may be paid by a telephone company that has gross operating revenues below specified thresholds. The tax is paid in lieu of corporate or business income tax. It is paid quarterly.

Due Date
The Telephone Personal Property Tax returns and monthly installment payments of the taxes are due the 25th day of each month of the calendar year following the valuation date. The Telephone Gross Receipts Tax return and tax are due quarterly on the 25th day of April 25, July 25, October 25, and January 25.

   

Filing Returns
Form TE-1 Vermont Telephone Gross Receipts Tax Return
Form TPP-650 Telephone Personal Property Tax Payment Voucher

Please note: The “Reporting Period” is the last day of the month for which the estimated payment is made.  For example, for the January 2017 estimated payment due January 25, 2017, the "Reporting Period" is 01 31 2017.

New! Revised Telephone Personal Property Tax Return and Schedule, with instructions.  Due March 27, 2017.
Form TPP-651 & Schedule TPP-653 Instructions, Telephone Personal Property Tax Return and Schedule
Schedule TPP-653, Telephone Personal Property Schedule

Helpful Information
32 V. S. A. Chapter 211 § 8521-8522 Telephone Companies


WIND-POWERED ELECTRIC GENERATING FACILITY TAX

The Wind-Powered Electric Generating Facility Tax is an alternative education property tax on buildings and fixtures used directly and exclusively in the generation of electrical energy from wind power.  The tax is levied upon a facility that is certified by the Commissioner of Public Service to meet the following four conditions:

  • Produces electrical energy for resale;
  • Generates electricity solely from wind power;
  • Has an installed capacity of at least one megawatt; and
  • Has received a certificate of public good (CPG) under 30 V.S.A. § 248.

The tax is computed on total kWh of wind generated electrical energy produced during the filing period.

Due Date
Wind-Powered Electric Generating Facility Tax is filed and paid semi-annually. The return and tax are due May 31 for the period November 1 of the preceding year through April 30 of the current year; and November 30 for the period May 1 through October 31 of the current year.

   

Filing Returns
Form WEF-602, Wind-Powered Electric Generating Facility Tax

Helpful Information
32 V. S. A. § 5402c  Wind-Powered Electric

 

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Commissioner Kaj Samsom
133 State Street | Montpelier, VT 05633
(802) 828-2505

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