Vermont § 10008 - Installment sales

§ 10008. Installment sales

• (a) As used in this section, “installment sale” means sale or exchange of land as defined
  in section 10004 of this title for which the total tax due under this chapter is greater than $2,000.00 and in which
  the parties agree in advance that payments shall be received by the seller or transferor
  in more than one installment on a date or dates other than the date of closing. A
  sale financed by a mortgage, deed of trust, or other financing arrangement in which
  the seller or transferor is paid in full on the date of the sale or exchange shall
  not be considered an installment sale. A lease-purchase agreement under which any
  part of the rental payments constitute a portion of the purchase price of the land
  shall be considered an installment sale, and for the purposes of this chapter, the
  end of the holding period with respect to the sale or exchange shall be determined
  as of the date of the agreement. (b) Notwithstanding any provision of law to the contrary, the tax under this chapter on
  any installment sale shall be due within 30 days of the date of payment of each installment
  paid to the seller or transferor. However, except for the first installment, the
  seller or transferor may elect to file his or her return as part of his or her Vermont
  income tax return for any year in which subsequent installments are paid or due and
  to pay the balance of such tax as part of such income tax; provided that, if the seller
  or transferor elects to file annual returns, no interest shall accrue on any withholding
  as provided by subsection 10007(b) of this title. (c) In an installment sale, the total amount of taxes due under this chapter shall be
  the amount that would have been due had the total purchase price been paid on the
  date the sale or exchange took place. The amount of taxes due on each separate installment,
  including the first installment, shall bear the same proportion to the total amount
  of taxes due as the amount of that installment bears to the total consideration. (Added 1973, No. 81, § 8, eff. May 1, 1973.)