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 which will be taxed.