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Title 32: Taxation and Finance

Chapter 219: MOTOR VEHICLE PURCHASE AND USE TAX

  • § 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 thereby 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 his or her authorized representatives. The Commissioner may prescribe and publish regulations to carry into effect the provisions of this chapter, which regulations, when reasonably designed to carry out the intent of this chapter, shall have the same force as if enacted herein. (Added 1959, No. 327 (Adj. Sess.), § 1, eff. March 1, 1960.)

  • § 8902. Definitions

    Unless otherwise expressly provided, the words and phrases used in this chapter shall be construed to mean:

    (1) "Commissioner" means the Commissioner of Motor Vehicles.

    (2) "Resident" means 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, which 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 which 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) "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. 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:

    (A) The value allowed by the seller on any motor vehicle accepted by him or her as part of the consideration of the motor vehicle, provided the motor vehicle accepted by the seller is owned and previously or currently registered by the purchaser, with no change of ownership since registration, 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.

    (B) The amount received from the sale of a motor vehicle last registered in his or her 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 NADA Official Used Car Guide (New England edition), or any comparable publication, provided such sale occurs within three months of 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 person's return from activation or deployment. Such amount shall be reported on forms supplied by the Commissioner of Motor Vehicles.

    (C) 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 him or her, provided that the vehicle is not subject to the tax imposed by 32 V.S.A. § 8903(d) and provided that one of these events occur:

    (i) the motor vehicle with respect to which such 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 such payment is made to the insurer is treated as a total loss and is sold for dismantling.

    (D) A purchaser shall be entitled to a partial or complete refund of taxes paid under 32 V.S.A. § 8903(a) or (b) if an insurer makes a payment to him or her under contract of collision, comprehensive, or similar insurance after he or she has paid the tax imposed by this chapter if such payment by the insurer is either:

    (i) on account of damages to a motor vehicle which 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 which occurred within three months prior to the taxable purchase.

    (E) The purchase price of a motor vehicle subject to the tax imposed by 32 V.S.A. § 8903(a) and (b) shall not be reduced by the value received or allowed in connection with the transfer of a vehicle which was registered for use as a short-term rental vehicle.

    (F) Notwithstanding any other provision of law, for leases in effect on June 30, 1995, no portion of the purchase and use tax paid at the time of lease shall be refunded; provided, however, for leases in effect on June 30, 1995, if the lessee purchases the leased vehicle, no tax shall be imposed on that purchase.

    (6) "Motor vehicle" shall have the same definition as in 23 V.S.A. § 4.

    (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 which 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. (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.)

  • § 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 $2,075.00 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 $2,075.00 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 which 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:

    pleasure car as defined in 23 V.S.A. § 4;

    motorcycle as defined in 23 V.S.A. § 4;

    motor home as defined in subdivision 8902(11) of this title; or

    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 which 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.)

  • § 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

    (a) Every purchaser of a motor vehicle subject to a tax under subsection 8903(a) of this title shall forward such tax form to the Commissioner, together with the amount of tax due at the time of first registering or transferring a registration to such motor vehicle as a condition precedent to registration thereof.

    (b) Every person subject to a use tax under subsection 8903(b) of this title shall forward such 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 such motor vehicle as a condition precedent to registration thereof.

    (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 such tax and a report of same 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 subsections 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 such motor vehicle as a condition precedent to the titling thereof. (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.)

  • § 8906. Tax form contents

    Except as otherwise provided pursuant to subdivision 8905(d) of this title, such tax form shall require information as to the purchase price of the motor vehicle, the value of any motor vehicle accepted in trade together with its make, type, serial or identification number, and year of manufacture and 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.)

  • § 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 which 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 his or her 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 the NADA Official Used Car Guide (New England Edition) or any comparable publication, less the lease end value of any leased vehicle. The Commissioner may compute and assess the tax due thereon, and notify the purchaser thereof forthwith by certified mail, and the purchaser shall remit the same within 15 days thereafter.

    (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 make, 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.)

  • § 8908. Regulations

    Notwithstanding any other provision of law, the Commissioner may from time to time make regulations to provide that "taxable cost" shall not reflect a diminution for trade-in arising from a purchase of a motor vehicle in a state which 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.)

  • § 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 Section 351 of the U.S. Internal Revenue Code, 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 which 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 for a period of at least three years 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 for the requisite period.

    (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.)

  • § 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. (Added 1959, No. 327 (Adj. Sess.), § 13, eff. March 1, 1960.)

  • § 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 which 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); 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)

  • § 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 which 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 which 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), 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 him or her, for the period for which the rental company failed to make the report, and shall assess the tax due from such rental company, adding to the amount thus determined a penalty of 50 percent thereof. 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.)

  • § 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 which 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.)