Citibank (South Dakota), N.A. v. Dept. of TaxesAnnotate this Case
Plaintiffs Citibank (South Dakota), N.A. (lender) and Sears, Roebuck and Co. (retailer) appealed a superior court decision affirming the determination of the Vermont Department of Taxes (Department) that the parties, who had partnered to operate a private label credit card program through retailers’ stores, were not entitled to sales tax refunds related to bad debts. The Department denied lender’s refund requests because it was not a registered vendor under Vermont law that remitted the sales tax it sought to recover, and denied retailer’s deductions because it did not incur the bad debt at issue. On appeal, plaintiffs argued that because they acted in combination to facilitate the sales giving rise to the bad debts, they were not barred from obtaining relief. Finding no reversible error, the Vermont Supreme Court affirmed.