Related to tax collected by DMV.
The documentation fee, which represents a charge for the preparation and handling of sale documents regardless of whether or not the vehicle is financed, should be included in the overall purchase price of the vehicle and is therefore subject to the Purchase and Use Tax.
Learn about the regulations for paying taxes and titling motor vehicles. The State of Vermont requires the collection of Purchase and Use Tax at the time of vehicle registration, learn more about vehicle taxation. You are required to select the type of ownership of your vehicle at the time you register in Vermont, learn about the types of vehicle ownership, and when this designation is important.
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:
You will be required to submit proof of government ownership.
These groups must submit the following documentation:
Click the ‘Estimate Tax Due on a Vehicle’ button at the center of the home screen or the ‘Estimate Tax Due on a Vehicle’ link under the Vehicle Inquiry section. Enter the type of vehicle and then the required information (e.g., VIN, salvage status, odometer reading, purchase date/price). Additionally, enter any trade-in vehicles that you would be reporting. Then click ‘Get Estimate’. The estimated tax due is displayed.
No, not from Vermont.
Several states, including Florida, will collect taxes equal to the rate of your home state. In this example, the Vermont tax is 6%, so they will charge you 6% tax. That tax money is not transferred to Vermont. The only way to get any portion of it refunded to you is to contact the state that collected the tax.
No, you may gift your personally owned vehicle to anyone you choose, but the plates belong to you, not the vehicle. The new owner must apply for new plates and registration under their name.
Exception: some low-number plates can be transferred to a family member.
The documentation fee, which represents a charge for the preparation and handling of sale documents regardless of whether or not the vehicle is financed, should be included in the overall purchase price of the vehicle and is therefore subject to the Purchase and Use Tax.
