§4. Nonprofit organizations; wine and beer auctions; fundraising

Link to law: http://legislature.vermont.gov/statutes/section/07/001/00004
Published: 2015

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The Vermont Statutes Online



Title

07

:
Alcoholic Beverages






Chapter

001

:
GENERAL PROVISIONS











 

§

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,

provided that:

(1) Prior to the

auction, the organization provides written notification of the auction

accompanied by documentation of its nonprofit status satisfactory to the

commissioner.

(2) 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

organization.

(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.)
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