NO. 40. AN ACT RELATING TO WINE AUCTIONS BY NONPROFIT ORGANIZATIONS.
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 7 V.S.A. § 4 is added to read:
§ 4. NONPROFIT ORGANIZATIONS; WINE AND BEER AUCTIONS;
(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.
Sec. 2. EFFECTIVE DATE
This act shall take effect on passage.
Approved: June 2, 2005
The Vermont General Assembly
115 State Street