All distributors filing a report must transmit payment of taxes to the Department of Motor Vehicles by means of an electronic funds transfer. See the complete "ACH Instructions" document below.
Vermont Department of Motor Vehicles ACH Credit Processing
An ACH credit transaction occurs when the originator (such as a business) authorizes a financial institution to send money from its account to recipients’ accounts. The information required to transfer the funds flows from the Originating Financial Depository Institution (ODFI) and gets put into a batch with other ACH requests. The batch is then transmitted to an ACH Operator, such as the Federal Reserve, at a predetermined time. The ACH Operator transfers the information to the Receiving Financial Depository Institution (RDFI), which deposits the credited amount of money in the recipient’s account.
The other type of ACH transaction is an ACH debit transaction, in which the originator authorizes the recipient to withdraw money from the account. For example, taxes can be paid electronically using ACH debit; the state is instructed to withdraw the funds from the originator’s account. The difference between the two types of ACH transactions is slight: In an ACH credit transaction, the bank sends money directly upon the originator’s request; in an ACH debit, the bank receives a request for the money to be sent upon the recipient’s request. For this reason, ACH credit is sometimes called a “push” transaction, and ACH debit is sometimes called a “pull” transaction.
Important - Funds must be received by DMV by the 25th of the month – so plan ahead.
If you have questions or need further assistance regarding a financial transaction, please get in touch with DMV Accounts Receivable at 802.828.3052.
If you have questions regarding reporting issues, please get in touch with Commercial Vehicle Operations.