Rooms, Meals, and Entertainment Taxes

On May 7, 2001, the Rutland City Board of Alderman adopted a local Gross Receipts Tax on Rooms, Meals and Entertainment, which shall go into effect on July 1, 2001. The ordinance provides for a 1% tax on the gross receipts of Rooms, Meals and Entertainment within the City. This tax is due and payable each and every month on the enclosed form RMETAX.

Important: this is not the State Rooms and Meals or Sales Tax and the return is sent directly to the City, not the State.

This is a wholly separate tax on business occupation authorized by the Charter of the City of Rutland. While in a great many instances, this tax will overlap with certain state taxes; this tax is payable to and administered by the City of Rutland. Here are some of the differences:

  • You are not required to separately state the City tax. How you price your goods or services is entirely up to you. You may elect to include the City tax in your general prices structure, or you may itemize it on the customer bill.
  • Your tax will be paid directly to the City on a monthly basis on a simple return form, which is available here or at the City Treasurer’s office.

If you are engaged in business activities, which are or may be taxable under this ordinance, you must apply for a Rooms, Meals, and Entertainment Tax ID via this portal or at the City Treasurer's office. A copy of the tax ordinance may be viewed here or obtained from the City Treasurer's office. The following is a summary of the major provisions:

Meals - 1%

The 1% meals tax is to be paid on the gross amount of meals and beverages you sell. If you pay a tax to the State of Vermont for a meal, you owe the tax to the City for that meal. Beverages include alcoholic beverages.

The Tax Return Form that the City requires you to use has you put on it the numbers from your State tax return.

Rooms – 1%

The 1% room's tax is to be paid on the gross amounts of rooms you rent. If you pay a tax to the State of Vermont for a room, you owe the tax to the City for that room.

The Tax Return Form that the City requires you to use has you put on it the numbers from your State tax return.

Entertainment – 1%

The entertainment tax applies to entertainment of every kind exhibited for money, including but not limited to; circuses, fairs, plays, motion pictures, public dance halls, carnivals, theatres and stage shows, shows and films and charges for the use of pool halls, skating rinks, billiard tables, bowling alleys, arcades, electric amusement devices, mechanical amusement devices, or the use of other places of amusement; or of amusement devices including coin machines, video tapes, VCR players, DVD’s, DVD players, movies of whatever nature, CD’s, games players, of whatever nature and of whatever name and character.

Excluded from the Entertainment Tax

Entertainment provided by educational or non-profit institutions or organizations or wholly for charitable purposes.

Penalties and interest

$13.00 late penalty payment or interest at the rate of 1% per month, whichever is greater. That unpaid balance and penalty total shall be subject to interest at a rate of 1% per month from the date of underpayments.

Failure to Comply

May be subject to a civil penalty up to $500.00 and may result in the suspension of any license or permit issued or approved by the City of Rutland.

You need to be aware that this tax is mandatory. The City has close contact with the Downtown Rutland Partnership and they will be informed if I do not receive a payment from any vendor. The City has adopted a policy that if the tax is not paid, the vendor will not be allowed to participate in any further events within the City limits.

For questions or further information, please contact:

Michelle Delpha, Account Clerk
Rutland City Hall
P.O. Box 969
Rutland, VT 05702-0969
(802) 773-1800 x241