Leased Vehicles

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.

Related Forms & Information

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.

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Tax

Contact Us

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

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