The Vermont Statutes Online

Title 32 : Taxation and Finance

Chapter 219 : Motor Vehicle Purchase and Use Tax

• § 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.

  [Subdivision (a)(2) effective until January 1, 2024; see also subdivision (a)(2) effective January 1, 2024 set out below.]

  (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.

  [Subdivision (a)(2) effective January 1, 2024; see also subdivision (a)(2) effective until January 1, 2024 set out above.]

  (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.

  [Subdivision (b)(2) effective until January 1, 2024; see also subdivision (b)(2) effective January 1, 2024 set out below.]

  (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.

  [Subdivision (b)(2) effective January 1, 2024; see also subdivision (b)(2) effective until January 1, 2024 set out above.]

  (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.)

• § 8903. Tax imposed [Effective January 1, 2024]

  (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.)