NADA Value

Vehicle Taxation

Purchase and Use Tax (32 V.S.A. § 8903)

Purchase: 

Purchase and Use Tax is due at the time of registration and/or title at a percentage of the purchase price or the National Automobile Dealers Association (NADA) clean trade-in value, whichever is greater, minus the value of the trade-in vehicle or any other allowable credit.

If the vehicle is currently registered/titled to you or your spouse or party to a civil union out-of-state, tax is based on NADA clean trade-in book value and is due unless exempt.

If you believe that the vehicle’s value is less than book value, you may submit a Vermont Dealer Appraisal Form.

If you are claiming the tax credit for a vehicle registered to you or your spouse or party to a civil union out-of-state, please send a copy of the Registration Certificate in your name or your spouse’s or party to a civil union name and complete section 7 of the application. You may be required to submit legal documentation that you and your spouse or party to a civil union were married or became a party to the civil union at the time the tax was paid out-of-state. You should also be prepared to submit documentation that the tax was paid and the amount of tax paid. Credit will be given for the purchase and use or sales tax paid on this vehicle to another jurisdiction. If the tax paid on an out-of-state registered vehicle was equal to or more than the Vermont tax rate, no additional tax will be due.

Lease:

The tax will be calculated by the dealer/leasing company. A lease agreement or Vermont Dealer worksheet must be submitted with documents. If the individual purchases this vehicle at the end of the lease, they will pay tax on the "residual/lease end value" of the vehicle.

The registration application is received from a Vermont Dealer or a Vermont Dealer acting on behalf of the Lessor. A "Purchase and Use Tax Computation - Leased Vehicle" Form (form #VD-147) may be submitted in lieu of a copy of the lease agreement and dealer worksheet.

Original Acquisition Cost - Lease End Value = Purchase Price

The Purchase Price is the amount that will be taxed.

Tax Rate

Vehicle Classification 6% 9% Maximum
ATV X   N/A
Auto X   N/A
Motorboat X   N/A
Motorcycle X   N/A
Motorhome X   N/A
Short Term Vehicle Rental   X N/A
Trucks (10,099 lbs or less) X   N/A
Trucks (10,100 lbs or more) X   $2,075.00
All Other Vehicles X   $2,075.00

Download the PDF form to your computer and then open it with Adobe Reader

FAQs

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.

You must provide DMV with the following:

  1. Completed Registration Application (VD-119)
  2. Title to the vehicle
  3. Updated (current) odometer reading
  4. Proof of the dollar amount of tax paid on the vehicle to any previous state (proof of tax paid is not necessary if the vehicle is over 3 years old and you have the title or proof of registration for the past 3 years from a taxable state)
  5. Visual Verification of Vehicle Identification Number (VIN) 
  6. Payment of the proper fees

Note: If the title to the vehicle is being held by the lien-holder you must provide DMV with the full name and address of the lien-holder.

Tags: 
Tax

Contact Us

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

Monday-Friday: 7:45am-4:30pm
email telephone

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