§ 9701. Definitions
Unless the context in which they occur requires otherwise, as used in this chapter:
(1) “Person” means an individual, partnership, society, association, joint stock company,
corporation, public corporation or public authority, estate, receiver, trustee, assignee,
referee, and any other person acting in a fiduciary or representative capacity, whether
appointed by a court or otherwise, and any combination of the foregoing.
(2) “Commissioner” means the State Commissioner of Taxes or any officer or employee of
the Department duly authorized by the Commissioner directly or indirectly by one or
more redelegations of authority to perform the functions herein mentioned or described.
(3) “Purchaser” means a person who purchases property or who receives services taxable
under this chapter.
(4)(A) “Sales price” means the total amount of consideration, including cash, credit, property,
and services, for which personal property or services are sold, leased, or rented,
valued in money, whether received in money or otherwise, without deduction for the
following:
(i) the seller’s cost of the property sold;
(ii) the cost of materials used, labor or service cost, interest, losses, all costs of
transportation to the seller, all taxes imposed on the seller, and any other expenses
of the seller;
(iii) charges by the seller for any services necessary to complete the sale, other than
installation charges; and
(iv) delivery charges;
and including consideration received by the seller from third parties if:
(I) the seller actually receives consideration from a party other than the purchaser and
the consideration is directly related to a price reduction or discount on the sale;
(II) the seller has an obligation to pass the price reduction or discount through to the
purchaser;
(III) the amount of the consideration attributable to the sale is fixed and determinable
by the seller at the time of the sale of the item to the purchaser; and
(IV) one of the following criteria is met:
(aa) the purchaser presents a coupon, certificate, or other documentation to the seller
to claim a price reduction or discount where the coupon, certificate, or documentation
is authorized, distributed, or granted by a third party with the understanding that
the third party will reimburse any seller to whom the coupon, certificate, or documentation
is presented;
(bb) the purchaser identifies himself or herself to the seller as a member of a group or
organization entitled to a price reduction or discount (a “preferred customer” card
that is available to any patron does not constitute membership in such a group); or
(cc) the price reduction or discount is identified as a third party price reduction or
discount on the invoice received by the purchaser or on a coupon, certificate, or
other documentation presented by the purchaser.
(B) “Sales price” shall not include:
(i) discounts, including cash, term, or coupons that are not reimbursed by a third party
that are allowed by a seller and taken by a purchaser on a sale;
(ii) interest, financing, and carrying charges from credit extended on the sale of personal
property or services, if the amount is separately stated on the invoice, bill of sale,
or similar document given to the purchaser;
(iii) any taxes legally imposed directly on the consumer that are separately stated on the
invoice, bill of sale, or similar document given to the purchaser;
(iv) installation charges;
(v) credit for any trade-in; and
(vi) telecommunications nonrecurring charges.
(5) “Retail sale” or “sold at retail” means any sale, lease, or rental for any purpose
other than for resale, sublease, or subrent, including sales to contractors, subcontractors,
or repair persons of materials and supplies for use by them in erecting structures
or otherwise improving, altering, or repairing real property. A manufacturer or retailer
shall be treated as a contractor when purchasing material and supplies for use by
them in erecting structures or otherwise improving, altering, or repairing real property
unless an election is made under section 9711 of this title.
(6) “Purchase price” means the measure subject to use tax and has the same meaning as
sales price.
(7) “Tangible personal property” means personal property that may be seen, weighed, measured,
felt, touched, or in any other manner perceived by the senses. “Tangible personal
property” includes electricity, water, gas, steam, and prewritten computer software
regardless of the method in which the prewritten computer software is paid for, delivered,
or accessed.
(8) “In this State” or “in the State” means within the exterior limits of the State of
Vermont and includes all territory within these limits owned by or ceded to the United
States of America.
(9) “Vendor” means:
(A) A person making sales of tangible personal property or services, the receipts from
which are taxed by this chapter.
(B) A person maintaining a place of business in the State and making sales, whether at
that place of business or elsewhere, to persons within the State of tangible personal
property or services, the use of which is taxed by this chapter.
(C) A person who:
(i) solicits sales of tangible personal property either by employees, independent contractors,
agents, or other representatives;
(ii) owns or controls a person engaged in the same manner or similar line of business in
this State; or
(iii) maintains or has a franchisee or licensee operating under such person’s name in this
State if the franchisee or licensee is required to collect the sales tax imposed by
this chapter; and by reason thereof makes sales to persons within the State of tangible
personal property or services, the use of which is taxed by this chapter.
(D) Any other person making sales to persons within the State of tangible personal property
or services, the use of which is taxed by this chapter, who may be authorized by the
Commissioner to collect the tax imposed by this chapter.
(E) The State of Vermont or any of its agencies, instrumentalities, public authorities,
public corporations, including a public corporation created pursuant to agreement
or compact with another state, or political subdivision when that entity sells services
or property of a kind ordinarily sold by private persons.
(F) A person making sales of tangible personal property from outside this State to a destination
within this State and not maintaining a place of business or other physical presence
in this State that:
(i) engages in regular, systematic, or seasonal solicitation of sales of tangible personal
property in this State:
(I) by the display of advertisements in this State;
(II) by the distribution of catalogues, periodicals, advertising flyers, or other advertising
by means of print, radio, or television media; or
(III) by mail, internet, telephone, computer database, cable, optic, cellular, or other
communication systems, for the purpose of effecting sales of tangible personal property;
and
(ii) has either made sales from outside this State to destinations within this State of
at least $100,000.00, or totaling at least 200 individual sales transactions, during
the 12-month period preceding the monthly period with respect to which that person’s
liability for tax under this chapter is determined.
(G) A person who has any other contact with this State that would allow this State to
require the seller to collect and remit use tax under the provisions of the Constitution
and laws of the United States.
(H) A person who provides telecommunications service as defined in subdivision (19) of
this section, except that “vendor” shall not include a person whose activities in
this State are limited to the performance of any activities that, without more, would
not constitute nexus for sales tax collection purposes, plus any or all of the following
necessary to create or maintain a World Wide Web page or internet site for the person:
(i) ownership of data or programming code in this State, or use of that data or programming
code by another person or by a person not in this State;
(ii) ownership of, or receipt of services from, computer servers in this State; or
(iii) receipt of computer processing or web hosting services from a computer service provider
or web hosting service in this State.
(I) For purposes of subdivision (C) of this subdivision (9), a person making sales that
are taxable under this chapter shall be presumed to be soliciting business through
an independent contractor, agent, or other representative if the person enters into
an agreement with a resident of this State under which the resident, for a commission
or other consideration, directly or indirectly refers potential customers, whether
by a link on an internet website or otherwise, to the person if the cumulative gross
receipts from sales by the person to customers in the State who are referred to the
person by all residents with this type of an agreement with the person are in excess
of $10,000.00 during the preceding tax year. For purposes of subdivision (C) of this
subdivision (9), the presumption may be rebutted by proof that the resident with whom
the person has an agreement did not engage in any solicitation in the State on behalf
of the person that would satisfy the nexus requirements of the U.S. Constitution during
the tax year in question.
(J) A marketplace facilitator who has facilitated sales by marketplace sellers to destinations
within this State of at least $100,000.00, or totaling at least 200 individual sales
transactions, during the 12-month period preceding the monthly period with respect
to which that person’s liability for tax under this chapter is determined.
(K) A marketplace seller who has combined sales to a destination within this State and
sales through a marketplace to a destination within this State of at least $100,000.00,
or totaling at least 200 individual sales transactions, during the 12-month period
preceding the monthly period with respect to which that person’s liability for tax
under this chapter is determined.
(10) “Trade-in” means an allowance, including any core charges, made for like-kind property
given to a vendor.
(11) “Place of entertainment” means any place where any facilities for entertainment, recreation,
amusement, or sports are provided.
(12)(A) “Casual sale” means an isolated or occasional sale of an item of tangible personal
property by a person who is not regularly engaged in the business of making sales
of that general type of property at retail where the property was obtained by the
person making the sale, through purchase or otherwise, for the person’s own use.
(B) Aircraft as defined in 5 V.S.A. § 202(6), snowmobiles as defined in 23 V.S.A. § 3201(5), all-terrain vehicles as defined in 23 V.S.A. § 3501(1), motorboats as defined in 23 V.S.A. § 3302(6), and vessels as defined in 23 V.S.A. § 3302(17) that are 16 feet or more in length are hereby specifically excluded from the definition of casual sale.
(13) “Use” means the exercise of any right or power over tangible personal property by
the purchaser thereof and includes the receiving, storage or any keeping or retention
for any length of time, withdrawal from storage, any installation, any affixation
to real or personal property, or any consumption of that property.
(14) “Persons required to collect tax” or “persons required to collect any tax imposed
by this chapter” means every vendor of taxable tangible personal property or services
and every recipient of amusement charges. These terms also include marketplace facilitators
with respect to retail sales made on behalf of a marketplace seller. These terms shall
also include any officer or employee of a corporation or other entity or of a dissolved
entity who, as that officer or employee, is under a duty to act for the corporation
or entity in complying with any requirement of this chapter.
(15) “Property and services the use of which is subject to tax” means all property sold
to a person within the State, whether or not the sale is made within the State, the
use of which property is subject to tax under section 9773 of this title or will become subject to tax when such property is received by or comes into the
possession or control of such person within the State.
(16) “Advertising agency” means a business 80 percent or more of whose gross receipts in
the previous taxable year were, or in the first taxable year are reasonably projected
to be, from charges for advertising services. As used in this definition, the term
“gross receipts” does not include charges for printing, imprinting, reproduction,
publishing of tangible personal property, or photography to the extent that:
(A) the activity was not performed by the business itself but was contracted out to another
business; and
(B) the charges therefor were passed through the business to its client.
(17) “Advertising materials” means tangible personal property that promotes a product,
service, idea, concept, issue, or the image of a person, but not copies or reproductions
of such property, or property on which printing or imprinting service has been performed.
(18) “Advertising services” means services rendered to promote a product, service, idea,
concept, issue, or the image of a person, including services rendered to design and
produce advertising materials prior to the acceptance of the advertising materials
for reproduction or publication, including research; design; layout; preliminary and
final art preparation; creative consultation, coordination, direction, and supervision;
script and copywriting; editing; and account management services. “Advertising services”
do not include printing, imprinting, reproduction, publishing of tangible personal
property, or photography.
(19) “Telecommunications service” means the electronic transmission, conveyance, or routing
of voice, data, audio, video, or any other information or signals to a point, or between
or among points. The term “telecommunications service” includes such transmission,
conveyance, or routing in which computer processing applications are used to act on
the form, code, or protocol of the content for purposes of transmission, conveyance,
or routing without regard to whether such service is referred to as voice-over internet
protocol services or is classified by the Federal Communications Commission as enhanced
or value added. “Telecommunications service” does not include:
(A) Data processing and information services that allow data to be generated, acquired,
stored, processed, or retrieved and delivered by an electronic transmission to a purchaser
where such purchaser’s primary purpose for the underlying transaction is the processed
data or information.
(B) Installation or maintenance of wiring or equipment on a customer’s premises.
(C) Tangible personal property.
(D) Advertising, including directory advertising.
(E) Billing and collection services provided to third parties.
(F) internet access service.
(G) Radio and television audio and video programming services, regardless of the medium,
including the furnishing of transmission, conveyance, and routing of such services
by the programming service provider. Radio and television audio and video programming
services shall include cable service as defined in 47 U.S.C. § 522(6) and audio and video programming services delivered by commercial mobile radio service
providers, as defined in 47 C.F.R. § 20.3.
(H) Ancillary services.
(I) Digital products delivered electronically, including software, music, video, reading
materials, or ring tones.
(20) [Repealed.]
(21) “Mobile telecommunications service” means mobile telecommunications service as defined
in 4 U.S.C. § 124.
(22) [Repealed.]
(23) “Alcoholic beverages” means beverages that are suitable for human consumption and
contain one-half of one percent or more of alcohol by volume.
(24) “Clothing” means all human wearing apparel suitable for general use. The following
list contains examples and is not intended to be an all-inclusive list.
(A) “Clothing” shall include:
(i) aprons, household and shop;
(ii) athletic supporters;
(iii) baby receiving blankets;
(iv) bathing suits and caps;
(v) beach capes and coats;
(vi) belts and suspenders;
(vii) boots;
(viii) coats and jackets;
(ix) costumes;
(x) diapers, child and adult, including disposable diapers;
(xi) earmuffs;
(xii) footlets;
(xiii) formal wear;
(xiv) garters and garter belts;
(xv) girdles;
(xvi) gloves and mittens for general use;
(xvii) hats and caps;
(xviii) hosiery;
(xix) insoles for shoes;
(xx) lab coats;
(xxi) neckties;
(xxii) overshoes;
(xxiii) pantyhose;
(xxiv) rainwear;
(xxv) rubber pants;
(xxvi) sandals;
(xxvii) scarves;
(xxviii) shoes and shoelaces;
(xxix) slippers;
(xxx) sneakers;
(xxxi) socks and stockings;
(xxxii) steel-toed shoes;
(xxxiii) underwear;
(xxxiv) uniforms, athletic and nonathletic; and
(xxxv) wedding apparel.
(B) “Clothing” shall not include:
(i) belt buckles sold separately;
(ii) costume masks sold separately;
(iii) patches and emblems sold separately;
(iv) sewing equipment and supplies, including knitting needles, patterns, pins, scissors,
sewing machines, sewing needles, tape measures, and thimbles; and
(v) sewing materials that become part of “clothing,” including buttons, fabric, lace,
thread, yarn, and zippers.
(25) “Clothing accessories” or “equipment” means incidental items worn on the person or
in conjunction with “clothing.” “Clothing accessories or equipment” are mutually exclusive
of and may be taxed differently than apparel within the definition of “clothing,”
“sport or recreational equipment,” and “protective equipment.” The following list
contains examples and is not intended to be an all-inclusive list. “Clothing accessories
or equipment” shall include:
(A) briefcases;
(B) cosmetics;
(C) hair notions, including barrettes, hair bows, and hair nets;
(D) handbags;
(E) handkerchiefs;
(F) jewelry;
(G) sunglasses, nonprescription;
(H) umbrellas;
(I) wallets;
(J) watches; and
(K) wigs and hairpieces.
(26) “Delivery charges” means charges by the seller of personal property or services for
preparations and delivery to a location designated by the purchaser of personal property,
or services, including transportation, shipping, postage, handling, crating, and packing.
Direct mail charges that are separately stated on an invoice or similar billing document
given to the purchaser are excluded from the definition of “delivery charges.”
(27) “Dietary supplement” means any product, other than tobacco, intended to supplement
the diet that:
(A) contains one or more of the following dietary ingredients:
(i) a vitamin;
(ii) a mineral;
(iii) an herb or other botanical;
(iv) an amino acid;
(v) a dietary substance for use by humans to supplement the diet by increasing the total
dietary intake; or
(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredients
described in subdivisions (i) through (v) of this subdivision (27)(A);
(B) is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form,
or if not intended for ingestion in such form, is not represented as conventional
food and is not represented for use as a sole item of a meal or of the diet; and
(C) is required to be labeled as a dietary supplement, identifiable by the “supplemental
facts” box found on the label and as required pursuant to 21 C.F.R. § 101.36.
(28) “Direct mail” means printed material delivered or distributed by U.S. mail or other
delivery service to a mass audience or addresses on a mailing list provided by the
purchaser or at the direction of the purchaser when the cost of the items is not billed
directly to the recipients. “Direct mail” includes tangible personal property supplied
directly or indirectly by the purchaser to the direct mail seller for inclusion in
the package containing the printed material. “Direct mail” does not include multiple
items of printed material delivered to a single address.
(29) “Drug” means a compound, substance, or preparation and any component of a compound,
substance, or preparation, but not including food and food ingredients, dietary supplements,
alcoholic beverages, or grooming and hygiene products, that is:
(A) recognized in the official U.S. Pharmacopeia, official Homeopathic Pharmacopeia of
the United States, official National Formulary, or in supplements to any of them;
(B) intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease;
or
(C) intended to affect the structure or any function of the body.
(30) “Durable medical equipment” means equipment, including repair and replacement parts
for such equipment, but does not include “mobility-enhancing equipment,” which:
(A) can withstand repeated use;
(B) is primarily and customarily used to serve a medical purpose;
(C) generally is not useful to a person in the absence of illness or injury; and
(D) is not worn on the body.
(31) “Food and food ingredients” means substances, whether in liquid, concentrated, solid,
frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans
and are consumed for their taste or nutritional value. “Food and food ingredients”
does not include alcoholic beverages, tobacco, cannabis and cannabis products as defined
under 7 V.S.A. § 831, or soft drinks.
(32) “Grooming and hygiene products” means soaps and cleaning solutions, shampoo, toothpaste,
mouthwash, antiperspirants, and suntan lotions and screens.
(33) “Lease or rental” means any transfer of possession or control of tangible personal
property for a fixed or indeterminate term for consideration. A lease or rental may
include future options to purchase or extend.
(A) “Lease or rental” does not include:
(i) A transfer of possession or control of property under a security agreement or deferred
payment plan that requires the transfer of title upon completion of the required payments.
(ii) A transfer of possession or control of property under an agreement that requires the
transfer of title upon completion of required payments and payment of an option price
does not exceed the greater of $100.00 or one percent of the total required payments.
(iii) Providing tangible personal property along with an operator for a fixed or indeterminate
period of time. A condition of this exclusion is that the operator is necessary for
the equipment to perform as designed. For the purpose of this subdivision, an operator
must do more than maintain, inspect, or set up the tangible personal property.
(B) “Lease or rental” does include agreements covering motor vehicles and trailers where
the amount of consideration may be increased or decreased by reference to the amount
realized upon sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1).
(34) “Mobility-enhancing equipment” means equipment, including repair and replacement parts
of such equipment, but does not include “durable medical equipment,” which:
(A) is primarily and customarily used to provide or increase the ability to move from
one place to another and which is appropriate for use either in a home or a motor
vehicle;
(B) is not generally used by persons with normal mobility; and
(C) does not include any motor vehicle or equipment on a motor vehicle normally provided
by a motor vehicle manufacturer.
(35) “Prosthetic device” means a replacement, corrective, or supportive device, including
repair and replacement parts for such device worn on or in the body to:
(A) artificially replace a missing portion of the body;
(B) prevent or correct a physical deformity or malfunction; or
(C) support a weak or deformed portion of the body.
(36) “Protective equipment” means items for human wear and designed as protection of the
wearer against injury or disease or as protection against damage or injury of other
persons or property but not suitable for general use. “Protective equipment” is mutually
exclusive of and may be taxed differently from apparel within the definition of “clothing,”
“clothing accessories or equipment,” and “sport or recreational equipment.” The following
list contains examples and is not intended to be an all-inclusive list. “Protective
equipment” shall include:
(A) breathing masks;
(B) clean room apparel and equipment;
(C) ear and hearing protectors;
(D) face shields;
(E) hardhats;
(F) helmets;
(G) paint or dust respirators;
(H) protective gloves;
(I) safety belts;
(J) safety glasses and goggles;
(K) tool belts; and
(L) welders’ gloves and masks.
(37) “Sport or recreational equipment” means items designed for human use and worn in conjunction
with an athletic or recreational activity that are not suitable for general use. “Sport
or recreational equipment” is mutually exclusive of and may be taxed differently than
apparel within the definition of “clothing,” “clothing accessories or equipment,”
and “protective equipment.” The following list contains examples and is not intended
to be an all-inclusive list. “Sport or recreational equipment” shall include:
(A) ballet and tap shoes;
(B) cleated or spiked athletic shoes;
(C) gloves, including baseball, bowling, boxing, hockey, and golf;
(D) goggles;
(E) hand and elbow guards;
(F) life preservers and vests;
(G) mouth guards;
(H) roller and ice skates;
(I) shin guards;
(J) shoulder pads;
(K) ski boots;
(L) waders; and
(M) wetsuits and fins.
(38) “Paging service” means a telecommunications service that provides transmission of
coded radio signals for the purpose of activating specific pagers; such transmissions
may include messages or sounds, or both.
(39) “Private communications service” means a telecommunications service that entitles
the customer to exclusive or priority use of a communications channel or group of
channels between or among termination points, regardless of the manner in which such
channel or channels are connected, and includes switching capacity, extension lines,
stations, and any other associated services that are provided in connection with the
use of such channel or channels.
(40) “Value-added non-voice data service” means a service that otherwise meets the definition
of telecommunications service in which computer processing applications are used to
act on the form, content, code, or protocol of the information or data primarily for
a purpose other than transmission, conveyance, or routing.
(41) “Coin-operated telephone service” means a telecommunications service paid for by inserting
money into a telephone accepting direct deposits of money to operate.
(42) “Ancillary services” means services that are associated with or incidental to the
provision of telecommunications services, including detailed telecommunications billing,
directory assistance, vertical service, and voice mail services.
(43) “Telecommunication nonrecurring charges” means an amount billed for the installation,
connection, change, or initiation of telecommunications service received by the customer.
(44) “Directory assistance” means an ancillary service of providing telephone number information
or address information, or both.
(45) “Transferred electronically” means obtained by the purchaser by means other than tangible
storage media.
(46) “Specified digital products” means digital audiovisual works, digital audio works,
digital books, or ringtones that are transferred electronically.
(A) “Digital audiovisual works” means a series of related images that, when shown in succession,
impart an impression of motion, together with accompanying sounds, if any.
(B) “Digital audio works” means works that result from the fixation of a series of musical,
spoken, or other sounds, including ringtones.
(C) “Digital books” means works that are generally recognized in the ordinary and usual
sense as “books.”
(D) “Ringtones” means digitized sound files that are downloaded onto a device and that
may be used to alert the customer with respect to a communication.
(47) “End user” means any person other than a person who received by contract a product
transferred electronically for further commercial broadcast, rebroadcast, transmission,
retransmission, licensing, relicensing, distribution, redistribution, or exhibition
of the product, in whole or in part, to another person or persons.
(48) “Compost” means a stable humus-like material produced by the controlled biological
decomposition of organic matter through active management but does not mean sewage,
septage, or materials derived from sewage or septage.
(49) “Manipulated animal manure” means manure that is ground, pelletized, mechanically
dried, or consists of separated solids.
(50) “Perlite” means a lightweight granular material made of volcanic material expanded
by heat treatment for use in growing media.
(51) “Planting mix” means material that is:
(A) used in the production of plants; and
(B) made substantially from compost, peat moss, or coir and other ingredients that contribute
to fertility and porosity, including perlite, vermiculite, and other similar materials.
(52) “Vermiculite” means a lightweight mica product expanded by heat treatment for use
in growing media.
(53) “Soft drink” means nonalcoholic beverages that contain natural or artificial sweeteners.
“Soft drinks” do not include beverages that contain milk or milk products, soy, rice,
or similar milk substitutes, or greater than 50 percent of vegetable or fruit juice
by volume.
(54) “Noncollecting vendor” means a vendor that sells tangible personal property or services
to purchasers who are not exempt from the sales tax under this chapter, but that does
not collect the Vermont sales tax.
(55) “Advanced wood boiler” means a boiler or furnace:
(A) installed as a primary central heating system;
(B) rated as high efficiency, meaning a higher heating value or gross calorific value
of 85 percent or more;
(C) containing at least one week fuel storage, automated startup and shutdown, and fuel
feed; and
(D) meeting other efficiency and air emissions standards established by the Department
of Environmental Conservation.
(56) “Marketplace facilitator” means a person who contracts with marketplace sellers to
facilitate for consideration, regardless of whether deducted as fees from the transaction,
the sale of the marketplace seller’s products through a physical or electronic marketplace
operated by the person and engages:
(A) directly or indirectly through one or more affiliated persons, in any of the following:
(i) transmitting or otherwise communicating the offer or acceptance between purchasers
and marketplace sellers;
(ii) owning or operating the infrastructure, electronic or physical, or technology that
brings purchasers and marketplace sellers together;
(iii) providing a virtual currency that purchasers are allowed or required to use to purchase
products from marketplace sellers; or
(iv) software development or research and development activities related to any of the
activities described in subdivision (B) of this subdivision (56), if such activities
are directly related to a physical or electronic marketplace operated by the person
or an affiliated person; and
(B) in any of the following activities with respect to the marketplace seller’s products:
(i) payment processing services;
(ii) fulfillment or storage services;
(iii) listing products for sale;
(iv) setting prices;
(v) branding sales as those of the marketplace facilitator;
(vi) order taking;
(vii) advertising or promotion; or
(viii) providing customer service or accepting or assisting with returns or exchanges.
(57) “Marketplace seller” means a person who has an agreement with a marketplace facilitator
and makes retail sales of tangible personal property, taxable services, or digital
goods through a marketplace owned, operated, or controlled by a marketplace facilitator,
even if the person would not be required to collect and remit the sales tax had the
sale not been made through the facilitated marketplace.
(58) “Marketplace” means the physical or electronic processes, systems, places, and infrastructure,
including a website, through which a marketplace facilitator engages in any of the
activities described in subdivision (56) of this section.
(59) “Affiliated person” means a person who, with respect to another person:
(A) has an ownership interest of more than five percent, whether direct or indirect, in
the other person; or
(B) is related to the other person because a third person, or group of third persons who
are affiliated persons with respect to each other, holds an ownership interest of
more than five percent, whether direct or indirect, in the related persons. (Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1975, No. 243 (Adj. Sess.), § 7, eff. May 1, 1976; 1977, No. 86, §§ 1, 6; 1979, No. 105 (Adj. Sess.), § 39, eff. date, see note below; 1983, No. 212 (Adj. Sess.), § 6; 1987, No. 251 (Adj. Sess.), § 3; 1989, No. 119, § 16, eff. June 22, 1989; 1989, No. 210 (Adj. Sess.), § 131b; 1989, No. 222 (Adj. Sess.), § 24; 1991, No. 32, § 40, eff. June 1, 1991; 1991, No. 186 (Adj. Sess.), § 28, eff. May 7, 1992; 1995, No. 86 (Adj. Sess.), §§ 1, 2, eff. March 28, 1996; 1997, No. 60, §§ 76, 77, eff. Sept. 1, 1997; 1999, No. 49, § 62, eff. June 2, 1999; 2001, No. 144 (Adj. Sess.), §§ 30, 33, 34, 38, eff. June 21, 2002; 2003, No. 68, §§ 51-56, eff. date, see note below; 2003, No. 152 (Adj. Sess.), § 16, eff. date, see note below; 2005, No. 75, §§ 21, 24, eff. July 1, 2005; 2005, No. 207 (Adj. Sess.), § 13, eff. May 31, 2006; 2009, No. 1 (Sp. Sess.), § H.40; 2009, No. 160 (Adj. Sess.), § 38, eff. April 1, 2011; 2011, No. 160 (Adj. Sess.), § 39; 2011, No. 45, § 36a, eff. date, see note below; 2013, No. 174 (Adj. Sess.), §§ 41, 44; 2015, No. 57, § 91; 2015, No. 134 (Adj. Sess.), § 22; 2015, No. 134 (Adj. Sess.), §§ 25, 27, eff. July 1, 2017; 2017, No. 194 (Adj. Sess.), § 25; 2019, No. 46, § 3, eff. June 1, 2019; 2019, No. 164 (Adj. Sess.), § 15, eff. March 1, 2022; 2019, No. 175 (Adj. Sess.), § 9, eff. Oct. 8, 2020; 2021, No. 105 (Adj. Sess.), § 592, eff. July 1, 2022; 2023, No. 6, § 390, eff. July 1, 2023; 2023, No. 144 (Adj. Sess.), § 13, eff. January 1, 2025; 2023, No. 183 (Adj. Sess.), § 3, eff. July 1, 2024.)
§ 9706. Statutory purposes
(a) The statutory purpose of the exemption for medical products in subdivision 9741(2) of this title is to lower the cost of medical products in order to support the health and welfare
of Vermont residents.
(b) The statutory purpose of the exemption for agricultural inputs in subdivision 9741(3) of this title is to promote Vermont’s agricultural economy.
(c) The statutory purpose of the exemption for prescription drugs intended for animal
use, durable medical equipment and prosthetics for animal use, and veterinary supplies
in subdivision 9741(53) of this title is to lessen the cost of veterinary services in order to support the health and welfare
of Vermont animals.
(d) The statutory purpose of the exemption for fuels for railroads and boats, to propel
vehicles, and to power machinery used in the timber industry, in subdivision 9741(7) of this title is to avoid the taxation of fuels:
(1) for the types of transportation for which public expenditure on infrastructure is
unnecessary;
(2) that are already subject to taxation under 23 V.S.A. chapter 27 or 28 in support of public expenditure on infrastructure or are specifically exempt from
taxation under either of those chapters; and
(3) in order to promote Vermont’s commercial timber and forest products economy.
(e) The statutory purpose of the exemption for sales of food in subdivision 9741(13) of this title is to limit the cost of goods that are necessary for the health and welfare of all
people in Vermont.
(f) The statutory purpose of the exemption for newspapers in subdivision 9741(15) of this title is to reduce the cost of access to news and community information for people in Vermont.
(g) The statutory purpose of the exemption for rentals of coin-operated washing facilities
in subdivision 9741(19) of this title is to exclude from taxation facilities that are still operated with coins.
(h) The statutory purpose of the exemption for admission fees to nonprofit museums in
subdivision 9741(20) of this title is to support the missions of certain nonprofit facilities and encourage higher visitation.
(i) The statutory purpose of the exemption for items sold to fire, ambulance, and rescue
squads in subdivision 9741(21) of this title is to limit the tax on organizations charged with protecting the safety of the public.
(j) The statutory purpose of the exemption for funeral charges in subdivision 9741(22) of this title is to lessen the costs accumulated by the bereaved.
(k) The statutory purpose of the exemption for commercial, industrial, or agricultural
research use of tangible personal property in subdivision 9741(24) of this title is to reduce financial barriers to research and innovation in the commercial, industrial,
and agricultural industries.
(l) The statutory purpose of the exemption for agricultural machinery and equipment in
subdivision 9741(25) of this title is to promote Vermont’s agricultural economy.
(m) The statutory purpose of the exemption for energy purchases for a residence in subdivision 9741(26) of this title is to limit the cost of goods that are necessary for the health and welfare of Vermonters.
(n) The statutory purpose of the exemption for energy purchases for farming in subdivision 9741(27) of this title is to promote Vermont’s agricultural economy.
(o) The statutory purpose of the exemption for sales of films to movie theaters in subdivision 9741(28) of this title is to avoid double taxation.
(p) The statutory purpose of the exemption for aircraft and depreciable parts for commercial
and private use in subdivision 9741(29) of this title is to promote the growth of the aircraft maintenance industry in Vermont by lowering
the cost of parts and equipment relative to other states with private airplane maintenance
facilities.
(q) The statutory purpose of the exemption for railroad rolling stock and depreciable
parts in subdivision 9741(30) of this title is to increase the use of rail for transport.
(r) The statutory purpose of the exemption for ferryboats and depreciable parts in subdivision 9741(31) of this title is to increase the use of ferries for transport.
(s) The statutory purpose of the exemption for sales of mobile homes and modular housing
in subdivision 9741(32) of this title is to create equity between mobile and modular housing and traditional residential
construction by providing an exemption for the estimated portion of the cost attributable
to labor (versus materials).
(t) The statutory purpose of the exemption for the U.S. flag sold to or by exempt veterans’
organizations in subdivision 9741(33) of this title is to support veterans’ organizations in performing their traditional functions.
(u) The statutory purpose of the exemption for property transferred as an incidental part
of a personal service transaction or transfer of intangible property rights in subdivision 9741(35) of this title is to forgo taxation when the cost of compliance exceeds the revenues.
(v) The statutory purpose of the exemption for advertising materials in subdivision 9741(36) of this title is to exclude tangible personal property from taxation if it is incidental to a larger
service.
(w) The statutory purpose of the exemption for documents that record a professional service
in subdivision 9741(37) of this title is to exclude tangible personal property from taxation if it is incidental to a service
package.
(x) The statutory purpose of the tracked vehicles cap in subdivision 9741(38) of this title is to lessen the cost of capital investments.
(y) The statutory purpose of the exemption for sales of building materials in subdivision 9741(39) of this title is to provide incentives to restore and revitalize downtown districts.
(z) The statutory purpose of the exemption for third-party scrap construction materials
in subdivision 9741(43) of this title is to promote the reuse and recycling of scrap construction materials.
(aa) The statutory purpose of the exemption for property incorporated in a railroad line
in subdivision 9741(44) of this title is to increase the use of rail for transport by lowering the costs of materials.
(bb) The statutory purpose of the exemption for clothing and footwear in subdivision 9741(45) of this title is to limit the tax burden on the purchase of goods that are necessary for the health
and welfare of all people in Vermont.
(cc) The statutory purpose of the exemptions for property incorporated into a net metering
system, on-premise energy systems not connected to the electric distribution system,
and solar hot water heating systems in subdivision 9741(46) of this title are to increase the deployment of solar technologies until the price of solar materials
and installation decreases to the point it does not need State subsidization.
(dd) The statutory purpose of the exemption for purchases by and limited purchases from
501(c)(3) organizations in subdivision 9743(3) of this title is to reduce costs for certain nonprofit organizations in order to allow them to
dedicate more of their financial resources to furthering the public-service missions
of the organizations.
(ee) The statutory purpose of the exemption for building materials and supplies used in
construction or repair of buildings by governmental bodies, 501(c)(3) organizations,
or development corporations in subdivision 9743(4) of this title is to reduce the costs of construction for certain nonprofit organizations in order
to allow them to dedicate more financial resources to their public-service missions.
(ff) The statutory purpose of the exemption for amusement charges for four events per year
for 501(c)(4)-(13) and (19) organizations and political organizations in subdivision 9743(5) of this title is to reduce the costs for and encourage participation in a limited number of events
organized by certain nonprofit organizations in order to allow these organizations
to dedicate more financial resources to their public-service missions.
(gg) The statutory purpose of the exemption for amusement charges for events presented
by 501(c)(3) organizations in subdivision 9743(7) of this title is to reduce the costs for and encourage participation in fundraising events organized
by certain nonprofit organizations in order to allow these organizations to dedicate
more financial resources to their public-service missions.
(hh) The statutory purpose of the reallocation of receipts from tax imposed on sales of
construction materials in section 9819 of this title is to provide incentives to restore and revitalize certain properties in designated
downtown districts.
(ii) The statutory purpose of the exemption for sales by licensed auctioneers in subdivision 9741(48) of this title is to extend the casual sale exemption to sales involving an auctioneer selling on
behalf of a third party.
(jj) The statutory purpose of the exemptions for composting materials, compost, animal
manure, manipulated animal manure, and planting mix in subdivisions 9741(49) and (50) of this title is to support the composting industry
and to further the goals of 2012 Acts and Resolves No. 148.
(kk) The statutory purpose of the exemption for timber cutting, removal, and processing
machinery in subdivision 9741(51) of this title is to promote Vermont’s commercial timber and forest products economy.
[Subsection (ll) repealed effective July 1, 2027.]
(ll) The statutory purpose of the exemption for advanced wood boilers in subdivision 9741(52) of this title is to promote the forest products industry in Vermont by encouraging the purchase
of modern wood heating systems.
(mm) The statutory purpose of the exemption for cannabis and cannabis products in subdivision 9741(55) of this title is to lower the cost of medical products sold by any dispensary as authorized under
7 V.S.A. chapter 37 in order to support the health and welfare of Vermont residents.
(nn) The statutory purpose of the exemption for sales of recyclable paper carryout bags
in subdivision 9741(54) of this title is to lessen the cost of recyclable paper carryout bags incidental to other retail
purchases made by customers in Vermont.
(oo) The statutory purpose of the exemption for menstrual products in subdivision 9741(56) of this title is to limit the cost of goods that are necessary for the health and welfare of Vermonters. (Added 2013, No. 200 (Adj. Sess.), § 6; amended 2013, No. 174 (Adj. Sess.), § 45; 2017, No. 75, § 18a; 2017, No. 77, § 10; 2017, No. 194 (Adj. Sess.), § 27; 2019, No. 164 (Adj. Sess.), § 17, eff. March 1, 2022; 2021, No. 20, § 270; 2021, No. 73, § 11, eff. July 1, 2020; 2021, No. 105 (Adj. Sess.), § 594, eff. July 1, 2022; 2021, No. 179 (Adj. Sess.), § 27a, eff. June 7, 2022.)