Vt. Stat. tit. 32 § 3113b
For all Vermont Lottery games, the Commissioner of Liquor and Lottery may, before issuing prize money to a winner, determine whether the winner has an outstanding tax liability payable to the Department of Taxes. If any such winner owes taxes to the State, the Commissioner of Taxes, after notice to the owner, may request and the Department of Liquor and Lottery shall transfer the amount of the tax liability to the Department for setoff of the taxes owed. The notice shall advise the winner of the action being taken and the right to appeal the setoff if the tax debt is not the winner's debt, or if the debt has been paid, or if the tax debt was appealed within 60 days from the date of the assessment and the appeal has not been finally determined, or if the debt was discharged in bankruptcy. Any offset of Lottery winnings for taxes shall be third in priority to the offset of Lottery winnings to the Office of Child Support pursuant to 15 V.S.A. § 792 and the offset of Lottery winnings for restitution pursuant to 13 V.S.A. § 7043.
32 V.S.A. § 3113b