The Vermont Statutes Online

Title 23: Motor Vehicles

Chapter 043: Mileage-Based User Fee [Effective January 1, 2027]

• § 4301. Definitions [Effective January 1, 2027]

  As used in this chapter:

  (1) “Account manager” means a person that the Agency of Transportation or Department of Motor Vehicles contracts with to administer and manage the mileage-based user fee.

  (2) “Annual vehicle miles traveled” means the total number of miles that a covered vehicle is driven during a mileage reporting period.

  (3) “Covered vehicle” means a battery electric vehicle pleasure car.

  (4) “Mileage-based user fee” or “MBUF” means the fee charged for the annual vehicle miles traveled by a covered vehicle pursuant to section 4302 of this chapter.

  (5) “Mileage-based user fee rate” means the per-mile usage fee charged to the owner or lessee of a covered vehicle pursuant to section 4302 of this chapter.

  (6) “Mileage reporting period” means:

  (A) the time period between required annual inspections;

  (B) the time period between the initial registration of a vehicle and an annual inspection; or

  (C) the time period between the most recent annual inspection and a terminating event.

  (7) “Terminating event” means any of the following:

  (A) the registration of a covered vehicle that had been registered in Vermont in a different state;

  (B) a change in ownership or lesseeship of a covered vehicle; or

  (C) the termination of a covered vehicle’s registration in Vermont. (Added 2025, No. 168 (Adj. Sess.), § 8, eff. January 1, 2027.)

• § 4302. Mileage-based user fee; assessment; calculation; payment; exemptions [Effective January 1, 2027]

  (a) Assessment and payment of mileage-based user fee (MBUF).

  (1) Options for payment of MBUF. The owner or lessee of a covered vehicle may elect to pay the MBUF according to one of the following options:

  (A) annual payment of the MBUF as a lump sum following the conclusion of each mileage reporting period as set forth in subdivision (2) of this subsection (a);

  (B) pay-as-you-go installment payments of the MBUF during a mileage reporting period as set forth in subdivision (3) of this subsection (a), provided that the Commissioner, in the Commissioner’s sole discretion, elects to make a pay-as-you-go option available; and

  (C) a flat rate of $178.00 as set forth in subdivision (5) of this subsection (a).

  (2) Annual mileage-based user fee payment option.

  (A) For an owner or lessee who opts to pay the MBUF as a lump sum at the end of each mileage reporting period, the Commissioner shall, within 14 days after the conclusion of the covered vehicle’s mileage reporting period, calculate the amount of the MBUF pursuant to subsection (d) of this section and mail an assessment of the amount to the owner or lessee.

  (B) The owner or lessee shall remit the amount due to the Commissioner on or before the earlier of:

  (i) the next required registration renewal for the covered vehicle;

  (ii) the termination of the covered vehicle’s Vermont registration; or

  (iii) the sale of the covered vehicle or termination of the lease of the covered vehicle, as appropriate.

  (3) Pay-as-you-go option.

  (A) Owners and lessees who opt into the pay-as-you-go mileage-based user fee option shall report the mileage shown on the odometer of the owner’s or lessee’s covered vehicle at times and in a manner required by the Commissioner.

  (B) As soon as practicable after receiving each report, the Commissioner shall calculate pursuant to subsection (d) of this section the applicable MBUF due for the covered vehicle and mail to the owner or lessee a statement of the amount of the mileage-based user fee assessed.

  (C) The owner or lessee of the covered vehicle shall remit the full amount due to the Commissioner within not more than 30 days after the assessment is mailed.

  (D) At the end of each mileage reporting period, the amount paid by the owner or lessee shall be reconciled against the actual mileage driven as set forth in subdivision (4) of this subsection (a).

  (4) Reconciliation of mileage for pay-as-you-go option.

  (A) At the conclusion of each mileage reporting period for a covered vehicle whose owner or lessee has elected the pay-as-you-go payment option, the Commissioner shall determine if the amount of the MBUF for the actual miles traveled by the covered vehicle during the mileage reporting period is greater than or less than the amount of the payments made by the owner or lessee during that period.

  (B) If the actual MBUF is less than the amount paid, the owner or lessee of the covered vehicle shall receive a credit equal to the difference between the amount paid and the actual amount, which shall be applied to reduce the amount of future fees due from the owner or lessee for the covered vehicle pursuant to this subsection (a).

  (C) If the actual MBUF is more than the amount paid, the owner or lessee of the covered vehicle shall be assessed an amount equal to the difference between the actual MBUF and the amount paid, which shall be added to the next amount due from the owner or lessee pursuant to this subsection (a).

  (5) Flat-rate option.

  (A) The Commissioner shall send an owner or lessee who elects the flat-rate option an assessment for the flat fee due at the beginning of each mileage reporting period. The owner or lessee shall remit the amount due to the Commissioner on or before the earlier of:

  (i) the next required registration renewal for the covered vehicle;

  (ii) the termination of the covered vehicle’s Vermont registration; or

  (iii) the sale of the covered vehicle or termination of the lease of the covered vehicle, as appropriate.

  (B) An owner or lessee enrolled in the flat-rate option shall not be required to report vehicle mileage to the Commissioner pursuant to the provisions of this chapter. Nothing in this subdivision (5)(B) shall be construed to exempt an owner or lessee enrolled in the flat-rate option from any other requirements in State law related to vehicle inspections or odometer disclosures.

  (6) Payment dates for mileage reporting periods ending within 60 days of registration renewal. Notwithstanding any provision of this subsection to the contrary, the owner or lessee of a covered vehicle with a mileage reporting period that ends 60 or fewer days prior to the next required registration renewal for the vehicle shall be permitted to remit the amount due to the Commissioner on or before the earlier of:

  (A) the next subsequent registration renewal of the vehicle;

  (B) the termination of the vehicle’s registration; or

  (C) the sale of the vehicle or the termination of the vehicle’s lease, as applicable.

  (b) Newly registered vehicles. The owner or lessee of a newly registered covered vehicle shall pay the MBUF during the initial year of registration pursuant to:

  (1) the pay-as-you-go option set forth in subdivision (a)(3) of this section; or

  (2) the flat-rate option set forth in subdivision (a)(5) of this section.

  (c) Election of different payment option. An owner or lessee of a covered vehicle may select a different option for payment of the MBUF pursuant to subsection (a) of this section by providing notice to the Commissioner in the time and manner prescribed by the Commissioner.

  (d) Calculation of the mileage-based user fee.

  (1) The Commissioner shall calculate the mileage-based user fee of each covered vehicle by multiplying the miles traveled by the covered vehicle during the applicable period by the rate established pursuant to subsection (e) of this section. The number of miles traveled shall be equal to:

  (A) for a mileage reporting period, the difference between the mileage shown on the covered vehicle’s odometer at the end of the mileage reporting period and the mileage shown on the covered vehicle’s odometer at the beginning of the mileage reporting period; and

  (B) for a report filed by an owner or lessee as part of the pay-as-you-go mileage-based user fee program pursuant to subdivision (a)(3) of this section, the difference between the mileage reported by the owner or lessee and the most recent prior mileage reported for the covered vehicle.

  (2) Notwithstanding any provision of subdivision (1) of this subsection to the contrary, the mileage-based user fee assessed for a mileage reporting period shall not exceed $178.00.

  (e) Mileage-based user fee rate. The mileage-based user fee rate shall be $0.014 per mile traveled by a covered vehicle during its mileage reporting period.

  (f) Exemptions. The mileage-based user fee assessed pursuant to this section shall not apply to:

  (1) covered vehicles owned or operated by the government of the United States;

  (2) covered vehicles owned or operated by the State of Vermont; or

  (3) covered vehicles that are used for short-term rentals.

  (g) Fee in addition to other fees and taxes. A mileage-based user fee assessed pursuant to this section shall be in addition to any other fees and taxes imposed by this title.

  (h) Review of amount assessed. A person may, within 45 days after an assessment is mailed pursuant to subsection (a) of this section, appeal the amount of the assessment to the Commissioner. The Commissioner shall establish procedures for filing and hearing appeals pursuant to this subsection that are consistent with the provisions of sections 105–107 of this title. The procedures shall include a process by which an appellant can resolve the dispute prior to the issuance of a final administrative decision on the appeal.

  (i) Refunds. Notwithstanding subdivision (a)(5)(B) of this section, upon occurrence of a terminating event, the Commissioner shall issue a refund to the owner or lessee of a covered vehicle for any amounts paid by the owner or lessee that are in excess of the amount due pursuant to this chapter. (Added 2025, No. 168 (Adj. Sess.), § 8, eff. January 1, 2027.)

• § 4303. Reports [Effective January 1, 2027]

  (a) Upon completion of an inspection of a covered vehicle pursuant to section 1222 of this title, an inspection mechanic shall report the mileage shown on the covered vehicle’s odometer to the Department in the manner required by the Commissioner.

  (b) Upon the occurrence of a terminating event, the owner or lessee of a covered vehicle shall report the mileage shown on the covered vehicle’s odometer at the time of the terminating event to the Department in the time and manner required by the Commissioner. (Added 2025, No. 168 (Adj. Sess.), § 8, eff. January 1, 2027.)

• § 4304. Failure to file report or obtain inspection; default rate [Effective January 1, 2027]

  (a) The Commissioner shall charge the owner or lessee of a covered vehicle a default rate of $178.00 if the Commissioner is unable to determine the annual vehicle miles traveled for the owner’s or lessee’s covered vehicle because the owner or lessee:

  (1) failed to file a report required by section 4303 of this chapter within a reasonable period of time after the report is due;

  (2) failed to have the covered vehicle inspected as required pursuant to section 1222 of this title within a reasonable period of time after the inspection is due at either the commencement or conclusion of a mileage reporting period; or

  (3) failed to have the covered vehicle inspected at any time during or within a reasonable time after the conclusion of a mileage reporting period.

  (b)(1) The default amount required pursuant to subsection (a) of this section shall be assessed when the owner or lessee of the covered vehicle next renews the vehicle’s registration following the mileage reporting period.

  (2) After being assessed the default amount pursuant to this subsection, the owner or lessee of the covered vehicle may obtain an inspection within 60 days after the date on which the vehicle’s registration is renewed. If the covered vehicle’s mileage is such that the mileage-based user fee would have been less than the default amount, the owner or lessee shall receive a credit for the difference that is applied to reduce the amount of the next mileage-based user fee due for the covered vehicle, provided that the Commissioner has sufficient odometer data to determine the mileage traveled since the beginning of the mileage reporting period. (Added 2025, No. 168 (Adj. Sess.), § 8, eff. January 1, 2027.)

• § 4305. Registration; suspension or refusal [Effective January 1, 2027]

  (a) Suspension of registration. The Commissioner may suspend or refuse to renew the registration of a covered vehicle if the Commissioner determines, following notice and an opportunity for a hearing as provided pursuant to subsection (b) of this section, that the owner or lessee of the covered vehicle:

  (1) failed to file a report required pursuant to section 4303 of this chapter;

  (2) filed a report containing an intentional misrepresentation, misstatement, or omission of material information required by this chapter; or

  (3) is delinquent at the time of renewal in the payment of any amount due pursuant to the provisions of this chapter.

  (b) Notice and opportunity for hearing. The Commissioner shall provide the owner or lessee of a covered vehicle with not less than 15 days’ notice of the intent to suspend or not to renew the registration of the covered vehicle pursuant to the provisions of this section. The owner or lessee shall be provided with the opportunity for a hearing and shall be permitted to be represented by counsel at the hearing. (Added 2025, No. 168 (Adj. Sess.), § 8, eff. January 1, 2027.)

• § 4306. Powers of the Commissioner [Effective January 1, 2027]

  (a) General authority. The Commissioner shall have the authority to administer and enforce the provisions of this chapter.

  (b) Additional powers. In addition to any powers or authority specifically granted to the Commissioner pursuant to the provisions of this chapter, the Commissioner may do the following:

  (1) adopt rules pursuant to 3 V.S.A. chapter 25 as the Commissioner determines necessary to administer and enforce the provisions of this chapter;

  (2) prescribe forms appropriate to the purposes of this chapter; and

  (3) contract with an account manager to administer and manage the mileage-based user fee. (Added 2025, No. 168 (Adj. Sess.), § 8, eff. January 1, 2027.)

• § 4307. Appeals; judicial review [Effective January 1, 2027]

  (a) Administrative appeal. An aggrieved person may appeal any final decision, order, or finding of the Commissioner under this chapter within not more than 45 days after the decision is issued or the order or finding is made. The Commissioner shall establish procedures for filing and hearing appeals pursuant to this subsection that are consistent with the provisions of sections 105–107 of this title.

  (b) Appeal to Superior Court. Following a final decision on an appeal pursuant to subsection (a) of this section or subsection 4302(h) of this chapter, the appellant may appeal the decision pursuant to Rule 74 of the Vermont Rules of Civil Procedure. The appeal shall be to the Washington Superior Court or, in the discretion of the appellant, to the Superior Court in the county where the appellant resides or has a principal place of business.

  (c) Exclusivity of remedies. The appeals provided by this section and subsection 4302(h) of this chapter shall be the exclusive remedies available to any person for review of an assessment, decision, or order or finding of the Commissioner under this chapter. (Added 2025, No. 168 (Adj. Sess.), § 8, eff. January 1, 2027.)