§ 8900. Statutory purposes
(a) The statutory purpose of the exemption for pious or charitable institutions or volunteer
fire companies in subdivision 8911(3) of this title is to lower the operating costs of pious and charitable organizations considered
exempt under subdivision 3802(4) of this title to allow them to dedicate more of their financial resources to furthering their public-service
missions.
(b) The statutory purpose of the exemption for nonregistered vehicles in subdivision 8911(5) of this title is to exclude from the tax vehicles that are not entitled to use the State highway
system.
(c) The statutory purpose of the exemption for gifts in subdivision 8911(8) of this title is to avoid the intrusion of a tax into sharing transactions that are common within
families.
(d) The statutory purpose of the exemption for persons with disabilities in subdivision 8911(12) of this title is to lessen the cost of purchasing a vehicle that has been modified to meet the
physical needs of a qualifying Vermonter.
(e) The statutory purpose of the exemption for veterans in subdivision 8911(14) of this title is to remove every cost to a qualifying veteran receiving a vehicle granted by the
Veterans’ Administration.
(f) The statutory purpose of the general exemption of trade-in value in subdivisions 8902(4)
and (5) of this title is to ensure the use value of a vehicle is taxed only once. (Added 2013, No. 200 (Adj. Sess.), § 20.)
§ 8901. Purpose
This chapter imposes a purchase and use tax on motor vehicles in addition to any other
tax or registration fees. The purpose of this chapter is to improve and maintain the
State and interstate highway systems, to pay the principal and interest on bonds issued
for the improvement and maintenance of those systems, and to pay the cost of administering
this chapter. The administration of this chapter is vested in the Commissioner of
Motor Vehicles and the Commissioner’s authorized representatives. The Commissioner
may adopt rules to effect the provisions of this chapter that, when reasonably designed
to carry out the intent of this chapter, shall have the same force as if enacted under
this chapter. (Added 1959, No. 327 (Adj. Sess.), § 1, eff. March 1, 1960; amended 2021, No. 105 (Adj. Sess.), § 572, eff. July 1, 2022.)
§ 8902. Definitions
Unless otherwise expressly provided, as used in this chapter:
(1) “Commissioner” means the Commissioner of Motor Vehicles.
(2) “Resident” shall include all legal residents of this State and in addition thereto
any person who accepts employment or engages in a trade, profession, or occupation
in this State for a period of at least six months. Also, in addition thereto, any
foreign partnership, firm, association, or corporation doing business in this State
shall be deemed to be a resident as to all vehicles owned or leased and ordinarily
used by it in connection with its place of business in this State. “Resident” shall
not include any person, firm, or corporation not required to register motor vehicles
by reason of any reciprocity provision with any other state.
(3) “Purchase or purchasing, sale or selling” means any transfer of title or possession,
exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever,
of a motor vehicle for a consideration, including leases and transactions whereby
the possession of the property is transferred but the seller retains the title as
security for the payment of the purchase price.
(4) “Purchase price” means the gross consideration, exclusive of the tax hereby imposed,
that is to be paid for the motor vehicle, expressed in terms of U.S. currency as of
the time of the sale, and shall include the cash consideration, if any, plus the value
of any services or property given or to be given, or both, in exchange for the motor
vehicle. In the case of a lease, the purchase price shall mean an amount computed
by subtracting the lease end value of the motor vehicle from the original acquisition
cost of the motor vehicle. For purposes of this subdivision, the original acquisition
cost of a motor vehicle is the gross consideration that the lessee would pay for the
motor vehicle if the lessee purchased the motor vehicle on the date of execution of
the lease contract, as stated in the lease contract or worksheet, and the lease end
value is the value of the motor vehicle at the end of the lease period, as stated
in the lease contract or worksheet or as determined under section 8907 of this title.
(5)(A) “Taxable cost” means the purchase price as defined in subdivision (4) of this section
or the taxable cost as determined under section 8907 of this title.
(B) For any purchaser who has paid tax on the purchase or use of a motor vehicle that
was sold or traded by the purchaser or for which the purchaser received payment under
a contract of insurance, the taxable cost of the replacement motor vehicle other than
a leased vehicle shall exclude:
(i) The value allowed by the seller on any motor vehicle accepted by the seller as part
of the consideration of the motor vehicle, provided the motor vehicle accepted by
the seller is owned and previously or currently registered or titled by the purchaser,
with no change of ownership since registration or titling, except for motor vehicles
for which registration is not required under the provisions of Title 23 or motor vehicles
received under the provisions of subdivision 8911(8) of this title.
(ii) The amount received from the sale of a motor vehicle last registered or titled in
the seller’s name, the amount not to exceed the clean trade-in value of the same make,
type, model, and year of manufacture as designated by the manufacturer and as shown
in the J.D. Power Values, or any comparable publication, provided the sale occurs
within three months after the taxable purchase. However, this three-month period shall
be extended day-for-day for any time that a member of a guard unit or of the U.S.
Armed Forces, as defined in 38 U.S.C. § 101(10), spends outside Vermont due to activation or deployment and an additional 60 days
following the individual’s return from activation or deployment. The amount shall
be reported on forms supplied by the Commissioner of Motor Vehicles.
(iii) The amount actually paid to the purchaser within three months prior to the taxable
purchase by any insurer under a contract of collision, comprehensive, or similar insurance
with respect to a motor vehicle owned by the purchaser, provided that the vehicle
is not subject to the tax imposed by subsection 8903(d) of this title and provided that one of these events occur:
(I) the motor vehicle with respect to which the payment is made by the insurer is accepted
by the seller as a trade-in on the purchased motor vehicle before the repair of the
damage giving rise to insurer’s payment; or
(II) the motor vehicle with respect to which the payment is made to the insurer is treated
as a total loss and is sold for dismantling.
(C) A purchaser shall be entitled to a partial or complete refund of taxes paid under
subsection 8903(a) or (b) of this title if an insurer makes a payment to the purchaser
under contract of collision, comprehensive, or similar insurance after the purchaser
has paid the tax imposed by this chapter, if the payment by the insurer is either:
(i) on account of damages to a motor vehicle that was accepted by seller as a trade-in
on the purchased vehicle before repairs of the damage giving rise to the insurer’s
payment; or
(ii) on account of damages for the total destruction of a vehicle arising from an accident
that occurred within three months prior to the taxable purchase.
(D) The purchase price of a motor vehicle subject to the tax imposed by subsections 8903(a)
and (b) of this title shall not be reduced by the value received or allowed in connection
with the transfer of a vehicle that was registered for use as a short-term rental
vehicle.
(6) “Motor vehicle” has the same meaning as in 23 V.S.A. § 4(21).
(7) “Person” means any individual, firm, partnership, joint venture, association, social
club, fraternal organization, estate, trust, fiduciary, receiver, trustee, or corporation.
(8) “Title” shall include possession under a sale or purchase that reserves title as security
to the seller.
(9) “Rental of pleasure cars on a short-term basis,” or words of similar import, means
rentals of pleasure cars for a rental period of less than one year. It shall also
mean rentals of trailer coaches and trucks having a gross vehicle weight of 26,000
pounds or less, and of trailers and semi-trailers having a gross weight of 3,000 pounds
or less, for a rental period of less than one year. It shall not apply to school
buses.
(10) “Rental company” means any person offering pleasure cars for rent on a short-term
basis.
(11) “Motor home” means a new or used pleasure car designed to provide temporary living
quarters, built into as an integral part of, or permanently attached to, a self-propelled
motor vehicle chassis or van. The vehicle must contain at least four of the following
facilities: cooking, refrigeration or ice box, self-contained toilet, heating and/or
air conditioning, a portable water supply system including a sink and faucet, separate
110-125 volt electrical power supply, and/or an LP gas supply.
(12) “Mail” has the same meaning as in 23 V.S.A. § 4(87). (Added 1959, No. 327 (Adj. Sess.), § 2, eff. March 1, 1960; amended 1963, No. 229; 1966, No. 66 (Sp. Sess.), § 1; 1967, No. 116 § 1, eff. April 17, 1967; 1969, No. 263 (Adj. Sess.), § 1, eff. April 6, 1970; 1981, No. 87, § 22; 1983, No. 251 (Adj. Sess.), §§ 1, 9 eff. Jan. 1, 1985; 1985, No. 187 (Adj. Sess.), § 1; 1985, No. 218 (Adj. Sess.), §§ 1, 2, eff. June 2, 1986; 1991, No. 67, § 26b; 1995, No. 19, § 1, eff. April 17, 1995; 1995, No. 80 (Adj. Sess.), §§ 1, 3, eff. Feb. 28, 1996; 1999, No. 110 (Adj. Sess.), § 9; 2011, No. 46, § 16, eff. May 24, 2011; 2017, No. 71, § 21; 2021, No. 105 (Adj. Sess.), § 573, eff. July 1, 2022; 2023, No. 41, § 38, eff. July 1, 2023; 2025, No. 66, §§ 22, 35, eff. July 1, 2025.)
§ 8903. Tax imposed
(a)(1) There is hereby imposed upon the purchase in Vermont of a motor vehicle by a resident
a tax at the time of such purchase, payable as hereinafter provided. The amount of
the tax shall be six percent of the taxable cost of a:
(A) pleasure car as defined in 23 V.S.A. § 4;
(B) motorcycle as defined in 23 V.S.A. § 4;
(C) motor home as defined in subdivision 8902(11) of this title; or
(D) vehicle weighing up to 10,099 pounds, registered pursuant to 23 V.S.A. § 367, other than a farm truck.
(2) For any other motor vehicle, it shall be six percent of the taxable cost of the motor
vehicle or $2,486.00 for each motor vehicle, whichever is smaller, except that pleasure
cars that are purchased, leased, or otherwise acquired for use in short-term rentals
shall be subject to taxation under subsection (d) of this section.
(b)(1) There is hereby imposed upon the use within this State a tax of six percent of the
taxable cost of a:
(A) pleasure car as defined in 23 V.S.A. § 4;
(B) motorcycle as defined in 23 V.S.A. § 4;
(C) motor home as defined in subdivision 8902(11) of this title; or
(D) vehicle weighing up to 10,099 pounds, registered pursuant to 23 V.S.A. § 367, other than a farm truck.
(2) For any other motor vehicle, it shall be six percent of the taxable cost of the motor
vehicle or $2,486.00 for each motor vehicle, whichever is smaller, by a person at
the time of first registering or transferring a registration to such motor vehicle
payable as hereinafter provided, except no use tax shall be payable hereunder if the
tax imposed by subsection (a) of this section has been paid, or the vehicle is a pleasure
car that was purchased, leased, or otherwise acquired for use in short-term rentals,
in which case the vehicle shall be subject to taxation under subsection (d) of this
section.
(c) The Vermont registration, transfer of Vermont registration, or the issuance of a Vermont
certificate of title of a motor vehicle shall be conclusive evidence that the purchase
and use tax applies, except as provided in section 8911 of this title.
(d) There is hereby imposed a use tax on the rental charge of each transaction, in which
the renter takes possession of the vehicle in this State, during the life of a pleasure
car purchased for use in short-term rentals, which tax is to be collected by the rental
company from the renter and remitted to the Commissioner. The amount of the tax shall
be nine percent of the rental charge. Rental charge means the total rental charge
for the use of the pleasure car, but does not include a separately stated charge for
insurance, or recovery of refueling cost, or other separately stated charges that
are not for the use of the pleasure car. In the event of resale of the vehicle in
this State for use other than short-term rental, such transaction shall be subject
to the tax imposed by subsection (a) of this section.
(e)(1) Any person registering a pleasure car in this State subject to the tax imposed by
subsection (d) of this section must pay the tax imposed by subsection (a) or (b) upon
demand of the Commissioner if:
(A) the vehicle is rented for less than 30 days in a continuous period of 365 days or
for less than 60 days in a continuous period of 730 days; or
(B) the vehicle is no longer used in short-term rentals; and
(C) the vehicle has not been stolen, converted, or abandoned.
(2) For taxation purposes, the value of the vehicle shall be fixed in accordance with
section 8907 of this title as of the time the event causing the imposition of the tax under subsection (a) or
(b) of this section occurs.
(f) There is hereby imposed a tax at the rate prescribed in subsection (a) of this section
on any amount charged at the end of a motor vehicle lease contract resulting from
excess wear and tear or excess mileage.
(g)(1) There is hereby imposed upon the titling in this State a tax at the rate provided
for in subsection (a) or (b) of this section of the taxable cost of a:
(A) pleasure car as defined in 23 V.S.A. § 4;
(B) motorcycle as defined in 23 V.S.A. § 4;
(C) motor home as defined in subdivision 8902(11) of this title; or
(D) vehicle weighing up to 10,099 pounds, registered pursuant to 23 V.S.A. § 367, other than a farm truck.
(2) For any other motor vehicle, it shall be at the rate provided for in subsection (a)
or (b) of this section and paid by a person at the time of obtaining a certificate
of title to the vehicle, except no tax shall be payable hereunder if the tax imposed
by subsection (a) or (b) of this section has been paid, or the vehicle is a pleasure
car that was purchased, leased, or otherwise acquired for use in short-term rentals,
in which case the vehicle shall be subject to taxation under subsection (d) of this
section. (Added 1959, No. 327 (Adj. Sess.), § 3, eff. March 1, 1960; amended 1961, No. 230 eff. Aug. 1, 1961; 1966, No. 66 (Sp. Sess.), § 2; 1967, No. 116 § 2, eff. April 17, 1967; No 380 (Adj. Sess.), § 2; 1979, No. 202 (Adj. Sess.), § 3, Pt. V, eff. Sept. 1, 1980, 1981, No. 87, § 23; 1981, No. 172 (Adj. Sess.), § 11b; 1983, No. 251 (Adj. Sess.), §§ 2, 3, 8, eff. Jan. 1, 1985; 1985, No. 187 (Adj. Sess.), § 2; 1985, No. 218 (Adj. Sess.), § 3, eff. June 2, 1986; 1987, No. 112, § 2; 1989, No. 51, § 50; 1991, No. 73, § 1; 1993, No. 1 (Sp. Sess.), § 7, eff. Sept. 1, 1993; 1995, No. 19, §§ 2, 3, eff. April 17, 1995; 1999, No. 159 (Adj. Sess.), § 28; 2001, No. 102 (Adj. Sess.), § 35, eff. May 15, 2002; 2003, No. 109 (Adj. Sess.), § 15; 2005, No. 175 (Adj. Sess.), § 42; 2009, No. 50, § 55, eff. May 29, 2009; 2015, No. 159 (Adj. Sess.), § 4; 2021, No. 105 (Adj. Sess.), § 574, eff. July 1, 2022; 2023, No. 78, § G.141, eff. January 1, 2024.)
§ 8904. Completion of form
(a) Every person selling or leasing a motor vehicle in Vermont shall at the time of selling
or leasing a motor vehicle compute for the purchaser or lessee the tax imposed by
subsection 8903(a), (b), (f), or (g) of this title and complete in its entirety the
tax form prescribed and furnished by the Commissioner.
(b) When the seller or lessor of a motor vehicle fails to fill out the tax form as required
in subsection (a) of this section, he or she shall be subject to the penalties under
section 8909 of this title or, if he or she is a registered dealer, the Commissioner may suspend the dealer
registration. Such suspension shall be for a reasonable time and shall not exceed
10 days for each offense and shall be made only after a finding that the failure of
such dealer is willful and intentional and not the result of inadvertence. (Added 1959, No. 327 (Adj. Sess.), § 4, eff. March 1, 1960; amended 1963, No. 113, eff. May 28, 1963; 1995, No. 19, § 4, eff. April 17, 1995.)
§ 8905. Collection of tax; education; appeals
(a) Every purchaser of a motor vehicle subject to a tax under subsection 8903(a) of this title shall forward the tax form to the Commissioner, together with the amount of tax due
at the time of first registering or transferring a registration to the motor vehicle
as a condition precedent to registration of the vehicle.
(b) Every person subject to a use tax under subsection 8903(b) of this title shall forward the tax form and the tax due to the Commissioner with the registration
application or transfer, as the case may be, and fee at the time of first registering
or transferring a registration to the motor vehicle as a condition precedent to registration
of the vehicle.
(c) If the tax due under subsection (a), (b), (e), or (f) of this section is not paid
as provided, a penalty of an additional one percent of taxable cost or $150.00, whichever
is smaller, shall be added to the tax due.
(d) Every person required to collect the use tax under subsection 8903(d) of this title shall forward the tax and a report of the tax on forms prescribed and furnished by
the Commissioner at the frequency determined by the Commissioner.
(e) Every lessor of a motor vehicle shall collect the tax imposed by subsection 8903(a)
or (b) of this title from the lessee and remit it to the Commissioner at the time
of registration of the motor vehicle, in the case of the first lease of a motor vehicle,
and within 30 days after any extension of the lease or any subsequent lease of the
motor vehicle. Every lessor of a motor vehicle shall collect the tax imposed by subsection 8903(f) of this title from the lessee and remit it to the Commissioner within 30 days after the end of
the motor vehicle lease contract. If the lessor fails to collect the tax imposed by
subsection 8903(a), (b), or (f) of this title, the lessee shall pay the tax directly
to the Commissioner within the time prescribed for payment.
(f) Every person subject to the tax imposed by subsection 8903(g) of this title shall forward the tax form and the tax due to the Commissioner along with the title
application and fee at the time of applying for a certificate of title to the motor
vehicle as a condition precedent to the titling of the motor vehicle.
(g) The Commissioner shall establish procedures for taxpayers to file an appeal regarding
the taxpayer’s liability for the tax due pursuant to section 8903 of this chapter
and compliance with the requirements of this section. The procedures shall include
a process by which a taxpayer can resolve the dispute prior to the issuance of a final
administrative decision on the appeal.
(h) The Commissioner shall create educational and outreach materials for taxpayers that
provide information regarding the appeal process established pursuant to subsection
(g) of this section and opportunities to resolve disputes. (Added 1959, No. 327 (Adj. Sess.), § 5, eff. March 1, 1960; 1966, No. 66 (Sp. Sess.), § 3; 1967, No. 6, § 1, eff. Feb. 17, 1967; 1969, No. 276 (Adj. Sess.), § 9; 1975, No. 96, § 2, eff. July 1, 1976; 1983, No. 251 (Adj. Sess.), § 4, eff. Jan. 1, 1985; 1989, No. 127 (Adj. Sess.), § 6, eff. March 15, 1990; amended 1995, No. 19, §§ 5, 6, eff. April 17, 1995; 2025, No. 66, § 36, eff. July 1, 2025.)
§ 8906. Tax form contents
Except as otherwise provided pursuant to subsection 8905(d) of this title, the tax form shall require the following information as to the purchase price of
the motor vehicle:
(1) the value of any motor vehicle accepted in trade together with its make, type, serial
or identification number, and year of manufacture; and
(2) the make, type, serial or identification number, and year of manufacture of the motor
vehicle purchased. (Added 1959, No. 327 (Adj. Sess.), § 6, eff. March 1, 1960; amended 1983, No. 251 (Adj. Sess.), § 5, eff. Jan. 1, 1985; 2021, No. 105 (Adj. Sess.), § 575, eff. July 1, 2022.)
§ 8907. Commissioner; computation of taxable costs
(a) The Commissioner may investigate the taxable cost of any motor vehicle transferred
subject to the provisions of this chapter. If the motor vehicle is not acquired by
purchase in Vermont or is received for an amount that does not represent actual value,
or if no tax form is filed or it appears to the Commissioner that a tax form contains
fraudulent or incorrect information, the Commissioner may, in the Commissioner’s discretion,
fix the taxable cost of the motor vehicle at the clean trade-in value of vehicles
of the same make, type, model, and year of manufacture as designated by the manufacturer,
as shown in J.D. Power Values or any comparable publication, less the lease end value
of any leased vehicle. The Commissioner may develop a process to determine the value
of vehicles that do not have clean trade-in value in J.D. Power Values. The Commissioner
may compute and assess the tax due and notify the purchaser verbally, if the purchaser
is at a DMV location, or immediately by mail, and the purchaser shall remit the same
within 15 days after notice is sent or provided.
(b) The Commissioner may investigate the lease end value of any motor vehicle transferred
subject to the provisions of this chapter. If the listed lease end value of a motor
vehicle does not represent a commercially reasonable value, the Commissioner shall
establish a reasonable, commercial value for the end of the lease period. The Commissioner
may adopt, amend, and repeal rules under 3 V.S.A. chapter 25 to establish the lease end value and may require and accept any satisfactory evidence
of such value. (Added 1959, No. 327 (Adj. Sess.), § 7, eff. March 1, 1960; amended 1967, No. 116, § 3, eff. April 17, 1967; 1995, No. 19, § 7, eff. April 17, 1995; 1995, No. 80 (Adj. Sess.), § 2, eff. Feb. 28, 1996; 2017, No. 71, § 22; 2021, No. 105 (Adj. Sess.), § 576, eff. July 1, 2022; 2025, No. 66, § 23, eff. July 1, 2025.)
§ 8908. Rules
Notwithstanding any other provision of law, the Commissioner may from time to time
adopt rules to provide that “taxable cost” shall not reflect a diminution for trade-in
arising from a purchase of a motor vehicle in a state that does not allow a deduction
for trade-in in the computation of the “taxable cost” or similar tax base in the computation
of taxes imposed by a motor vehicle sales and use tax in that state. (Added 1967, No. 116, § 6, eff. April 17, 1967; amended 2021, No. 105 (Adj. Sess.), § 577, eff. July 1, 2022; 2023, No. 6, § 388, eff. July 1, 2023.)
§ 8909. Enforcement
If the tax due under subsection 8903(d) of this title is not paid as hereinbefore provided, the Commissioner shall suspend the rental company’s
license to act as a rental company and motor vehicle registrations within the State
of Vermont until such tax is paid, and such tax may be recovered with costs in an
action brought in the name of the State on this statute. (Added 1959, No. 327 (Adj. Sess.), § 8, eff. March 1, 1960; amended 1966, No. 66 (Sp. Sess.), § 4; 1967, No. 116, § 4, eff. April 17, 1967; 1983, No. 251, (Adj. Sess.), § 6, eff. Jan. 1, 1985; 2015, No. 147 (Adj. Sess.), § 15, eff. May 31, 2016.)
§ 8910. Penalties
Any person who willfully makes a false statement on such tax form prescribed and furnished
by the Commissioner or any person who willfully attempts to evade the tax herein imposed
shall be fined not more than $500.00. (Added 1959, No. 327 (Adj. Sess.), § 9, eff. March 1, 1960.)
§ 8911. Exceptions
The tax imposed by this chapter shall not apply to:
(1) Motor vehicles owned or registered, or motor vehicles rented, by any state or province
or any political subdivision thereof.
(2) Motor vehicles owned and operated by the United States of America.
(3) Motor vehicles owned or leased by religious or charitable institutions or volunteer
fire companies.
(4) Motor vehicles owned and operated by a dealer and registered and operated under the
provisions of 23 V.S.A. §§ 451-468 inclusive.
(5) Nonregistered motor vehicles other than tow or repairman vehicles.
(6) [Repealed.]
(7) Motor vehicles, title to which on the effective date of this chapter is in the owner
seeking registration thereof.
(8) Motor vehicles transferred to the spouse, mother, father, child, sibling, grandparent,
or grandchild of the donor during the donor’s life or following his or her death,
or to a trust established for the benefit of any such persons or for the benefit of
the donor, or subsequently transferred among such persons, including transfers following
a death, provided the motor vehicle has been registered or titled in this State in
the name of the original donor. Transfers exempt under this subdivision (8) include
eligible transfers resulting by operation of the law governing intestate estates.
(9) Motor vehicles on which a state sales or use tax has been paid by the person applying
for a registration in Vermont, or paid by a person who, at the time of tax payment
to another state, was the spouse of the person now applying for Vermont registration.
If the tax paid in another state is less than the Vermont tax, the tax due shall be
the difference. An applicant for credit under this subdivision shall bear the burden
of proving the amount of tax paid in the other state, and acceptable proof shall include
a valid certificate of title from that state and a cancelled check to that Department
of Motor Vehicles in an amount at least equal to the total purchase and use tax due
to that state.
(10) Motor vehicles registered in Vermont by the transferor and transferred between that
person and a business entity controlled by the transferor, if the transfer is exempt
under 26 U.S.C. § 351, as amended.
(11) [Repealed.]
(12) One motor vehicle owned or leased and operated by a person with a permanent physical
disability for whom the vehicle’s controls have been altered to enable the person
to drive, or owned or leased by a person with a permanent disability or by a parent
or guardian of a person with a permanent disability for whom a mechanical lifting
device has been installed to allow for entry and exit of the vehicle, provided that
the person with a disability has been certified exempt from the tax by the Commissioner
of Motor Vehicles under the provisions of section 8901 of this title.
(13) Motor vehicles obtained from the government as excess government property, or vehicles
purchased with 100 percent federal funds and used for federally supported local programs.
(14) A motor vehicle acquired by a veteran with financial assistance from the U.S. Department
of Veterans Affairs, or a vehicle obtained as a replacement to one acquired with such
assistance, when accompanied by a copy of an approved VA Form 21-4502 issued by the
U.S. Department of Veterans Affairs certifying the veteran to be entitled to the financial
assistance.
(15) Motor vehicles registered in this State by nonresidents under the International Registration
Plan.
(16) Motor vehicles registered or titled in Vermont and transferred from an individual
to, or in trust for the benefit of, a former spouse if the transfer is incident to
the divorce. A transfer of a motor vehicle is incident to the divorce if the transfer
occurs within one year after the date on which the divorce becomes final.
(17) Any motor vehicle acquired by the owner for use in leases for a period of one year
or longer, provided that the motor vehicle is not registered before it is leased.
(18) Motor vehicles, the titles of which have passed to the holder of a certificate of
abandoned motor vehicle pursuant to 23 V.S.A. § 2156.
(19) Motor vehicles for which salvage certificates of title are obtained pursuant to 23 V.S.A. § 2092.
(20) Titles issued to the manufacturer of a vehicle that has been returned to that manufacturer
pursuant to any proceeding brought under 9 V.S.A. chapter 115.
(21) [Repealed.]
(22) Motor vehicles that have been registered to the applicant in a jurisdiction that imposes
a state sales or use tax on motor vehicles. An applicant for exemption under this
subdivision shall bear the burden of establishing to the satisfaction of the Commissioner
that the vehicle was registered in a qualifying jurisdiction.
(23) The following motor vehicles used for timber cutting, timber removal, and processing
of timber or other solid wood forest products intended to be sold ultimately at retail:
skidders with grapple and cable, feller bunchers, cut-to-length processors, forwarders,
delimbers, loader slashers, log loaders, whole-tree chippers, stationary screening
systems, and firewood processors, elevators, and screens. (Added 1959, No. 327 (Adj. Sess.), § 10, eff. March 1, 1960; amended 1966, No. 66 (Sp. Sess.), § 5; 1967, No. 116, § 5, eff. April 17, 1967; 1975, No. 96, § 1, eff. April 30, 1975; 1977, No. 258 (Adj. Sess.), § 4, eff. April 19, 1978; 1979, No. 202 (Adj. Sess.), § 3, Pt. VI, eff. Sept. 1, 1980; 1981, No. 201 (Adj. Sess.), §§ 1, 2, eff. April 22, 1982; 1985, No. 118 (Adj. Sess.), § 3; 1985, No. 124 (Adj. Sess.), § 3; 1987, No. 124 (Adj. Sess.), eff. Feb. 16, 1988; 1987, No. 241 (Adj. Sess.), § 11; 1991, No. 91; 1993, No. 26, § 1; 1993, No. 223 (Adj. Sess.), §§ 1, 2, eff. June 20, 1994; 1995, No. 19, §§ 8, 9, 11a, eff. April 17, No. 40, § 2, eff. April 17, 1995; 1995, No. 80 (Adj. Sess.), § 4, eff. Feb. 28, 1996; 1995, No. 112 (Adj. Sess.), § 15; 1997, No. 55, § 10, eff. June 26, 1997; 1999, No. 159 (Adj. Sess.), §§ 29, 30; 2001, No. 143 (Adj. Sess.), § 64; No. 144 (Adj. Sess.), § 31, eff. June 21, 2002; 2003, No. 101 (Adj. Sess.), § 4; 2005, No. 188 (Adj. Sess.), § 9; 2013, No. 96 (Adj. Sess.), § 198; 2017, No. 194 (Adj. Sess.), § 10; 2017, No. 206 (Adj. Sess.), §§ 7, 13; 2021, No. 105 (Adj. Sess.), § 578, eff. July 1, 2022; 2023, No. 41, § 39, eff. July 1, 2023.)
§ 8912. Allocation of funds
The taxes collected under this chapter shall be paid into and accounted for in the
Transportation Fund. (Added 1959, No. 327 (Adj. Sess.), § 11, eff. March 1, 1960; amended 1981, No. 87, § 4.)
§ 8913. Fraudulent collection of tax
No person, except the Commissioner and his or her authorized representatives, including
rental companies as provided in subsection 8903(d) of this title, may collect or accept payment of any tax imposed by this chapter. Any person so
doing shall be presumed to have the intent to convert it to his or her own use. Any
unauthorized person who willfully collects or accepts payment of such a tax, upon
conviction for a first offense, shall be fined not more than $200.00 or imprisoned
for not more than 90 days, or both. Upon each subsequent conviction, he or she shall
be fined not more than $500.00 or imprisoned for not more than one year, or both. (Added 1959, No. 327 (Adj. Sess.), § 12, eff. March 1, 1960; amended 1983, No. 251 (Adj. Sess.), § 7, eff. Jan. 1, 1985.)
§ 8914. Refund
Any overpayment of such tax as determined by the Commissioner shall be refunded. To
be eligible to receive a refund, a person shall submit a request for a refund within
one year after paying the tax. (Added 1959, No. 327 (Adj. Sess.), § 13, eff. March 1, 1960; amended 2025, No. 66, § 24, eff. July 1, 2025.)
§ 8915. Reciprocal agreements
The Commissioner may enter into reciprocal agreements with appropriate officials of
any other state or province under which he or she may waive all or any part of the
tax imposed by this chapter upon a similar waiver by such state or province. (Added 1966, No. 66 (Sp. Sess.), § 6.)
§ 8916. Bonds
(a) When the Commissioner deems it necessary to protect the revenues to be obtained under
this chapter, he or she may require a rental company to file with him or her a bond
issued by a surety company authorized to transact business in this State and approved
by the Commissioner of Financial Regulation of this State as to solvency and responsibility,
in an amount fixed by the Commissioner, but not to exceed the total potential liability
of such person, to secure the payment of any tax or penalties or interest due or that
may become due from a rental company under this chapter. In the event that the Commissioner
determines that such person is to file a bond, he or she shall give notice to him
or her to that effect, specifying the amount of the bond required. That person shall
file a bond within 15 days after the giving of the notice unless within those 15 days
he or she shall request in writing a hearing before the Commissioner at which the
necessity, propriety, and amount of the bond shall be determined by the Commissioner.
The determination shall be final and shall be complied with within 15 days after the
giving of notice thereof. In lieu of a bond, securities approved by the Commissioner,
or cash in such amount as he or she may prescribe may be deposited, which shall be
kept in the custody of the State Treasurer who may at any time upon instructions from
the Commissioner without notice to the depositor apply them to any tax or interest
or penalties due, and for that purpose the securities may be sold by him or her at
public or private sale without notice to the depositor thereof.
(b) The total amount of the bond required of a rental company may be fixed by the Commissioner
and may be increased or decreased by him or her at any time subject to the limitations
imposed by this section.
(c) If the liability upon a bond filed by a rental company with the Commissioner becomes
discharged or reduced, whether by judgment rendered, payment made, or otherwise, or
if in the opinion of the Commissioner any surety on a bond has become unsatisfactory
or unacceptable, the Commissioner shall require the rental company to file a new bond
with satisfactory sureties in the same amount and, upon failure to do so, the Commissioner
shall forthwith suspend the right to operate a motor vehicle in this State.
(d) If a rental company fails or refuses to increase the amount of a bond or file a bond
as required by the Commissioner within 15 days after notice mailed to him or her,
his or her right to operate a motor vehicle in this State shall be suspended forthwith. (Added 1983, No. 251 (Adj. Sess.), § 10, eff. Jan. 1, 1985; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).)
§ 8917. Bonds; discharge
Any surety on a bond furnished by a rental company shall be discharged from any liability
to the State accruing on the bond after expiration of 60 days from the date the surety
shall have filed with the Commissioner a written request to be released and discharged,
but the surety shall not be released or discharged from liability already accrued
or that shall accrue before the expiration of the 60-day period. The Commissioner,
upon receipt of such a request, shall promptly notify by mail the rental company who
furnished the bond. Unless the rental company, prior to the expiration of the 60-day
period, files a new bond satisfactory to the Commissioner, the Commissioner shall
suspend his or her right to operate a motor vehicle in this State. (Added 1983, No. 251 (Adj. Sess.), § 11, eff. Jan. 1, 1985.)
§ 8918. Records
(a) Each rental company shall keep and retain for a period of not less than three years
such records as may be prescribed by the Commissioner that are reasonably necessary
to substantiate the reports required by subsection 8905(d) of this title.
(b) The Commissioner or his or her agents may examine the books and records of any rental
company during the usual business hours of the day to verify the truth and accuracy
of any statement, report, or return or to determine if the tax imposed by this chapter
has been paid. (Added 1983, No. 251 (Adj. Sess.), § 12, eff. Jan. 1, 1985.)
§ 8919. Additional assessments
(a) If the Commissioner is not satisfied that the report filed or the amount of tax paid
by a rental company is accurate, after investigating and finding such inaccuracy,
he or she may make an additional assessment of taxes due from such rental company
based upon his or her investigation. A penalty equal to 10 percent and interest at
the rate of one and one-half percent per month shall be payable on the additional
assessment, with interest computed from the date the tax payment was due. The Commissioner
shall give notice by mail to the rental company of the additional assessment, penalty,
and interest and shall designate the error or reason for such assessment. Payment
shall be due within 30 days of the date of mailing the notice.
(b) When no report or payment of tax has been made as required by subsection 8905(d) of this title, or when a willfully false or fraudulent report has been filed, the tax may be assessed
at any time; in all other cases, no assessment of additional tax, and the mailing
of notice thereof, shall be made after the expiration of three years from the date
of filing a report. (Added 1983, No. 251 (Adj. Sess.), § 13, eff. Jan. 1, 1985.)
§ 8920. Interest; penalties
(a) Any person who fails to file a report when due shall pay a fee of $10.00 as partial
compensation for the added administrative costs.
(b) In addition to the fee prescribed in subsection (a) of this section, any person who
fails to pay any tax when due shall pay, in addition to the tax, interest calculated
at one and one-half percent per month on the tax from the due date, until paid. In
addition, if the taxpayer fails to pay the tax liability in full within 30 days, a
penalty equal to five percent of the outstanding tax liability for each month or portion
thereof shall be paid; provided, however, that in no event shall the amount of the
penalty imposed hereunder exceed 25 percent of the tax liability unpaid on the prescribed
date of payment. The Commissioner may remit all or any part of the penalty if he
or she is satisfied that the delay was excusable. (Added 1983, No. 251 (Adj. Sess.), § 14, eff. Jan. 1, 1985.)
§ 8921. Assessments
If a rental company neglects or refuses to file any report required by this chapter,
the Commissioner shall make an estimate of the tax due, based upon information available
to the Commissioner, for the period for which the rental company failed to make the
report, and shall assess the tax due from the rental company, adding to the amount
thus determined a penalty of 50 percent of the tax due. The assessment shall bear
interest at the rate of one and one-half percent per month from the date the tax payment
was due until paid. The Commissioner shall give the rental company notice by mail
of the assessment, and payment shall be due within 15 days of the date of the mailing
of the notice. (Added 1983, No. 251 (Adj. Sess.), § 15, eff. Jan. 1, 1985; amended 2021, No. 105 (Adj. Sess.), § 579, eff. July 1, 2022.)
§ 8922. Assessment; hearing
A rental company against whom assessment is made pursuant to section 8919 or 8920 of this title may appear in person or by counsel in the Office of the Commissioner within 15 days
after the mailing to him or her of notice of the assessment then and there to show
cause why the assessment is in error or to present any other facts or testimony that
would bear on the amount of the assessment or the manner in which it was made. The
hearing may be continued from time to time. If the rental company or his or her agent
does not appear within the 15 days, the assessment shall become final. (Added 1983, No. 251 (Adj. Sess.), § 16, eff. Jan. 1, 1985.)
§ 8923. License required
(a) It is unlawful for any person to act as a rental company without being licensed as
such.
(b) On or before January 1 of each year, an applicant for a rental company license shall
file with the Commissioner an application prepared and furnished by the Commissioner.
The application shall not be under oath but shall contain a declaration that it is
made under the penalties of perjury.
(c) Upon receipt of an application in proper form and the other conditions and requirements
of this chapter having been complied with, the Commissioner may issue a license to
an applicant that will remain in effect for one year or until such time as surrendered
or revoked. (Added 1983, No. 251 (Adj. Sess.), § 17, eff. Jan. 1, 1985.)