The following is a list of conditions that will allow you to register your vehicle exempt from payment of the Vermont Purchase and Use Tax:
A vehicle owned or leased by the government
You will be required to submit proof of government ownership.
A vehicle owned or leased by a religious or charitable institution
These groups must submit the following documentation:
- A copy of the Articles of Association and Statement of Purpose as filed with the Secretary of State.
- A copy of Internal Revenue Service form letter 947 which indicates that this group has been determined as exempt from federal income tax under section 501(a) of the Internal Revenue Code, or copies of the IRS form letters 1045 and 1050 indicating that you are eligible as a 501(c)(3) organization.
- A copy of the Exemption Organization Registration Certificate for Vermont Sales and Use Tax or a letter from the Vermont Department of Taxes (signed by the Tax Department) stating that the organization has been granted exemption status from Vermont Sales and Use Tax as having 501(c)(3) status. Form S3 Resale and Exempt Organization Certificate of Exemption is not acceptable as it does not verify exemption status.
Note: The Articles of Association and Statement of Purpose would be used for requesting tax-exempt status from the Vermont Department of Taxes.
Gifts
See the Gifts page for more information.
Controlling interest
Vehicle registered and/or titled 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 United States Internal Revenue Code in effect July 1, 1966 (you will be required to submit a completed Certification of Tax Exemption form (#VT-014) indicating the transfer is to a business entity in which the person has controlling interest (80%).
Persons with disabilities
A vehicle equipped with altered controls and owned and operated or titled by a permanently disabled person, certified exempt by the Commissioner - must submit a statement of eligibility from the dealer or installer stating the vehicle has been adapted. You must submit a Certification of Tax Exemption form (#VT-014) signed by a physician, certifying that the condition is permanent and that special controls are required.
A vehicle equipped with a mechanical lifting device and owned by a permanently disabled person, certified exempt by the Commissioner (you will be required to submit a statement of eligibility from the dealer or installer stating the device installed and a Certification of Tax Exemption form (#VT-014) signed by a physician certifying that the condition is permanent and the device is required).
Tax paid in another state
Vehicle on which a state tax (Sales, Purchase & Use, or Ad Valorem) has been paid in another state by the person applying for a title/registration in Vermont. If the tax paid in another state is less than the Vermont tax, the tax due shall be the difference. You will be required to submit proof of tax paid. A copy of the retail installment agreement is not acceptable. You will be required to submit a completed Certification of Tax Exemption form (#VT-014)
Vehicles previously registered out-of-state
You may claim a tax credit for a vehicle registered to you for a period of 3 years or more in a jurisdiction that imposes a state sales or use tax on vehicles. You must prove that the vehicle was registered in a qualifying jurisdiction for at least three years. Submit a completed Certification of Tax Exemption form (#VT-014) with a completed Registration or Tax and title application. Examples of proof of registration are:
- Out-of-state Title (we will go by the title issue date).
- Registration Certificate(s) that show the vehicle was registered for three or more years.
- Letter from that state's motor vehicle department stating the vehicle has been registered there for three or more years.
Veterans
See the Military Personnel page for more information.
Rental vehicles
This applies to a pleasure car, trailer (with a loaded weight of 3,000 lbs or less), truck, and trailer coach (with a loaded weight of 26,000 lbs or less) when registered for use as a rental unit. The registrant or lessee must be licensed in Vermont as a VT Rental Company and will be required to submit a completed Rental Tax Exemption (form #VD-030). This vehicle is also classified as a Jitney and should be registered as such. Note: Registration, Tax, and Title Application must also be completed.
Transfer to trust
Vehicle registered and/or titled and transferred from an individual to, or in trust for the benefit of, a former spouse if the transfer is part of the divorce settlement and if the transfer takes place within one year after the date on which the divorce became final. You must submit a completed Certification of Tax Exemption form (#VT-014) with a completed Registration, Tax and Title application.