The Vermont Statutes Online
4. Nonprofit organizations; wine and beer auctions; fundraising
(a) A nonprofit
organization qualified for tax exempt status pursuant to Section 501(c) of the
Internal Revenue Code, as amended, in the discretion of the commissioner, may
auction vinous or malt beverages, or both, to the public without a license,
(1) Prior to the
auction, the organization provides written notification of the auction
accompanied by documentation of its nonprofit status satisfactory to the
commissioner approves the organization's nonprofit qualifications and the
organization's right to auction vinous or malt beverages.
(3) The profits
from the auction sale of beverages are used solely for the expenses of the
nonprofit organization to conduct the sale or for the nonprofit purposes of the
(b) A person who
donates vinous or malt beverages to a nonprofit organization for an auction
under this section is not required to be licensed under this chapter.
(c) A licensee
under this title may donate beverages to a nonprofit organization pursuant to
this section, provided the licensee pays to the state all the taxes due as if
the beverages had been sold in the course of the licensee's business.
(d) If an
auction under this section is conducted on the premises of a licensee under
this title, beverages donated for auction may be given and accepted without
including the beverages on the licensee's invoice.
(e) A purchaser
of beverages auctioned by a nonprofit organization pursuant to this section
shall not be responsible for payment of any sales tax. (Added 2005, No. 40, §
1, eff. June 2, 2005.)