Vermont Statutes Title 23. Motor Vehicles, § 3102. Licensing and bonding of distributors

(a) Before commencing business, on application, a distributor shall first procure a license from the Commissioner permitting him or her to continue or to engage in business as a distributor. Before the Commissioner issues a license, the distributor shall file with the Commissioner a surety bond in a form and with sureties as the Commissioner may require for a sum based on an estimate of the tax liability for a two-month period, but not to exceed $700,000.00, conditioned upon the issuance of the report and the payment of the tax, penalties, and fines provided in this subchapter. Upon approval of the application and bond, the Commissioner shall issue to the distributor a nonassignable license that shall continue in force until surrendered or revoked.

(c) Notwithstanding the limits established in subsection (b) of this section, if payments and reports are delinquent for more than 10 days for more than one reporting period in a calendar year, the bond amount shall be increased to be the sum of the tax liability for the highest four months of the year. A distributor aggrieved by a decision of the Commissioner to increase the bond under this subsection may request a hearing, which shall be conducted in accordance with sections 105-107 of this title, and appeals shall be governed by section 3115 of this chapter.

(d) All distributors shall mail financial statements to the Commissioner on an annual basis. If the distributor does not wish to submit a financial statement, a bond in the amount established in accordance with subsection (c) of this section shall be required.

(e) As used in this section, the term surety bond may also include, in the discretion of the Commissioner as to the best interests of the State, other good and sufficient surety instead of a bond.