The Vermont Department of Taxes on Thursday sent the Hermitage a notice that the company was “not in good standing,” with the state.
The private ski resort owes more than $1 million in back taxes and the notice is an administrative step that allows the state to shut down the mountain if a payment schedule is not worked out.
“If they are digging a hole deeper with every transaction then sometimes we get to a point where the best option, or the only option, is to cease them from doing business,” Tax Commissioner Kaj Samsom said.
The Hermitage is an exclusive, members-only ski resort in Dover.
The company also owns inns, restaurants and motels around the Deerfield Valley.
Along with failing to pay its rooms and meals, and sales taxes with the state, the company also missed tax and water payments to the town of Wilmington, and has been facing pressure from local and state authorities to meet its financial obligations.
In late February, Berkshire Bank filed a foreclosure notice on The Hermitage for failure to make payments on about $17 million in loans.
The back taxes, along with money owed to local contractors and to the town of Wilmington, were also mentioned in the foreclosure notice.
While Samsom said he could not discuss any details about the Hermitage’s tax situation, he said the state has the authority to shut down a business if there is a long history of failing to pay the state taxes.
Often in these instances the company is collecting the taxes from the customers and not passing that money on to the state.
Samsom said as of Friday, the Hermitage worked with the state and the company was moved back into good standing.
A spokeswoman for the company said the mountain would be open for business this weekend.