Outreach - Sales Tax Exemptions

This page contains information about bills in the legislature that propose Vermont State Sales and User tax holidays or further exemptions.  

There are currently about 40 exemptions to the Vermont Sales and Use Tax. They include: drugs, agricultural feeds, food purchased at grocery stores, newspapers, funeral charges, caskets, cremation urns, aircraft used as a business, ferryboats, U.S. flags when sold by veterans' organizations, most clothing, compost sold in bulk, etc. etc. etc.

Here's the list of bills that propose changes:
  • H.69 proposes that August 26th and 27th be state sales tax holidays. There would be no sales tax on personal use items costing less that $2,000. With some restrictions, vendors will be reimbursed for the cost of re-programming cash registers. And towns with a Local Option Tax (LOT) would be reimbursed by the State for any loss of LOT revenues. The Joint Fiscal Office (JFO) reported on a similar bill in 2015 regarding the impact on State finances.
  • H.355 exempts motor assisted bicycles from the sales tax.
  • H.357 exempts indoor commercial and residential advanced wood boilers from the sales and use tax.
  • H.43 exempts feminine hygiene products from sales tax.
  • H.205 proposes a number of sales and use tax changes
    • Reduce the return fee for Local Option filings. A fee of $5.96 is charged each time a business files its Local Option Tax receipts to the State. This fee is reduced to $2.83.
    • Repeals the electrical energy tax.
    • Extends the sales and use tax exemption for airplanes and parts, such that the aircraft need not be used as a business.
    • Eliminated the sunset on the Vermont Enterprise Fund. It is scheduled to sunset June 30th, 2017. This fund is used to help companies create jobs in Vermont. Here's the 2016 report.
    • Provide a tax holiday for the sale of hybrid vehicles, electric vehicles, and energy-efficient products. If you purchase such a product during between September 1st, 2017 and September 17th, 2017 then your can apply to Efficiency Vermont for a 6% rebate.
Keep in mind that bills change as they move through the legislature. The information on this page may be outdated. This is how things stand on March 10th, 2017. If you know of any corrections that should be made, let me know.