Purchase and Use Tax (32 V.S.A.)
Purchase and Use Tax is due at the time of registration and/or title at the rate of 6% of the purchase price or the National Automobile Dealers Association (NADA) clean trade-in value, whichever is greater (see allowable credits and exemptions).
If the vehicle is currently registered/titled to you or your spouse out-of-state, tax is based on NADA clean trade-in book value and is due unless exempt.
You may submit a Vermont Dealer Appraisal form if the vehicle’s value is less than the NADA value.
The dealer/leasing company will calculate the tax. 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 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.