Taxation of Off-Road Vehicles

All-Terrain Vehicles

ATVs are not subject to the Purchase and Use Tax, but are subject to Sales & Use Tax. ATVs purchased from a dealer (or business) and registered in Vermont; the dealer (or business) must submit a tax form to the Vermont DMV. For ATVs purchased as a casual (private) sale, no Purchase and Use Tax is due. A Vermont resident who purchases an ATV from an out-of-state dealer must prove payment of the out-of-state sales tax (equal to, or greater than the rate of sales tax in Vermont).

NOTE: ATVs are not eligible for a Purchase and Use Tax Exemption.

 

Motorboats

The first registration or validation of a vessel/personal watercraft (Jet-ski)/shuttlecraft in Vermont is subject to the sales tax unless:

  • A purchase invoice is presented showing a sales tax (equal to the amount of the current Vermont sales tax or greater) paid to a dealer in any one of the 45 state jurisdictions imposing a sales tax. Note: Alaska, Montana, Delaware, New Hampshire and Oregon do not have a Sales and Use Tax.
  • The applicant for the Motorboat Registration is a non-resident of Vermont and purchased the vessel in a state other than Vermont (while a non-resident).
  • The applicant for the Motorboat Registration is a non-resident of Vermont and purchased the vessel in Vermont, but received title or possession (or both) in another state.
  • The applicant for the Motorboat Registration is a non-resident of Vermont and submits a copy of a valid registration from his/her home state.
  • The vessel is/was acquired through a transfer to an individual (relative or not) for no consideration.

The following situation should be referred to the State of Vermont Tax Department: An exemption from sales tax is claimed other than outlined above.

Taxable motorboat transactions or "gift" transfers must be accompanied by Tax Form SU-452 unless this is a Vermont Dealer transaction and Section 6A s completed.

Most questions regarding motorboat transactions are answered in the instructions portion of the Vermont Motorboat Registration Application (form #VD-037i).

See Motorboat taxation rate.

 

Snowmobiles

A taxable snowmobile transaction must be accompanied by tax form SU-452 unless the transaction is a Vermont Dealer transaction and appropriate section of the Vermont Snowmobile Registration Application (form #VD-038) has been completed by the dealer.

Vermont Residents: The sales tax is due at the time of the registration unless you (the registrant) have obtained an exemption letter from the Vermont Department of Taxes. A credit (up to the amount equal to the the current Vermont sales tax) will be given for sales tax paid in another state if proof of purchase showing the amount of tax paid is presented with your Snowmobile Registration Application.

Non-residents: No registration or tax is due if you (the registrant) currently have the snowmobile registered in your home state/province and display a valid Vermont TMA (Trail Maintenance Assessment) sticker issued by V.A.S.T.  (Vermont Association of Snow Travelers).

  • If your snowmobile is not currently registered in another state/province and displaying a valid TMA (Trail Maintenance Assessment) sticker issued by V.A.S.T (Vermont Association of Snow Travelers) and you will be using the snowmobile in Vermont registration is required.
  • No tax is due if you present a valid/expired snowmobile registration from your home state/province.
  • No tax is due if you purchase a snowmobile in Vermont and take delivery out-of-state.
  • Sales tax is due if you purchase a snowmobile in Vermont and take delivery in Vermont.
  • No tax is due if the snowmobile is purchased out-of-state by a non-resident.

Exemptions: Religious, charitable or educational organizations may be exempted by the Vermont Department of Taxes. For further information regarding the tax contact the Sales & Use Section of the Vermont Tax Department (802) 828-2551.

Most questions regarding snowmobile transactions are answered in the instructions portion of the Vermont Snowmobile Registration Application (form #VD-038).

 

Related Forms & Information

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Vermont Department of Motor Vehicles
120 State Street
Montpelier, VT 05603-0001

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